Ed McMahon = idiot of the month

[juanbenae]

i heard on the radio he was quoted as saying that he had shown the house in an attempt to sell but a the paparazzi at britney's house just up the block 24/7 turned off many of the prospective buyers.

T$

[berettafan]

I have a mortgage because i don't make enough to write a check for a house; Ed does.


When you're that old you don't buy green bananas and you don't borrow that sort of $ for a home. Foolish to have so much earning capacity and so little sense.

It's a shame to break your neck and i'm certainly not laughing at them but it was easily preventable.

Was he ever a spokesman for those reverse mortgage co's? If so i have zero pity.

[Sonic dB]

something doesnt add up right here... at 85, he bought that house 18 years ago when he was 68 or so. At that time, Carson was planning on going off the air, which he did a couple of years later... McMahon also had Star Search...but did he have any ownership of either of these properties, or was he just a paid spokesperson? At the very least, he should/would have made $20 mil on Star Search if he had ownership of that property... so for him not to make payments on this house that he bought in 90 makes no sense at all... unless he just blew tons and tons of money and saved nothing...

i hate to rip the guy at 85, with a broken neck and no real prospects of future income, but obviously he made majorly stupid financial decisions his whole life, and in particular in the 80s-90s.

[Noah930]

Originally Posted by k911sc

i heard on the radio he was quoted as saying that he had shown the house in an attempt to sell but a the paparazzi at britney's house just up the block 24/7 turned off many of the prospective buyers.

T$

I've driven by the address (well, at least the gate to the neighborhood) 3 times in the last 24 hours. Two paparazzi the first time, no paparazzi the second time, and 3 paparazzi the third time. Yes there are paparazzi that hang out (down the street, not in front of the gate), but it's not as bad as it sounds. Not common (though it does occur) that I see 10+ cars out there, waiting for Britney/J Lo/etc.

I still have little sympathy for the guy.

[competentone]

Originally Posted by Sonic dB

i hate to rip the guy at 85, with a broken neck and no real prospects of future income....

I'm sure he has plenty of opportunities, whether book deals, or as a spokesperson. His "celebrity" is still a marketable commodity -- look at the way we're talking about him here!

[Sonic dB]

I'm sure he has plenty of opportunities, whether book deals, or as a spokesperson. His "celebrity" is still a marketable commodity -- look at the way we're talking about him here!

true to some extent, but my point was that at age 85, in progressively failing health, without any real projects that he is apparently not working on, without apparently having a piece of ownership in past vehicles such as Star Search (I check Wiki and the show was owned by other production companies).... how much time does he have left as a viable spokesperson/celebrity? Yeah he may be able to get a gig promoting life insurance etc. such as what Robert Wagner is doing...or maybe a possible cameo in a film or TV show...but my point is that the clock is running fast there...

Anyway, lets turn back the clock 20 years and you are a very famous, well-spoken 65 year old McMahon and Star Search comes to you with this TV show concept that they want you to host...how do you not demand points on that? Maybe he did but even some points on that show which ran for 12 years would be huge and enough to set up someone for life, regardless of age.

[Hugh R]

So Ed owes more than he can sell it for and he hasn't got the deniro to do anything about it? If that means I have more net worth than him, that's really sad. Maybe he's letting it go but has millions somewhere else and is just walking away from an asset. He may still have bucks in the bank.

[the]

Originally Posted by Sonic dB

i hate to rip the guy at 85, with a broken neck and no real prospects of future income, but obviously he made majorly stupid financial decisions his whole life, and in particular in the 80s-90s.

+1. A broken neck a year and a half ago didn't cause his financial problems. He's obviously made many, many bad decisions over probably several decades, that's what's lead to his situation.

Still sad to see happen to anyone.

How about Evander Holyfield's foreclosure? Rough numbers, he bought land and built his house outside Atlanta in 1995, spent a reported $40 million building it.

Now it's in foreclosure, he owes $10 million and it's worth around $10 million.

Holyfield earned around $200 million in his fights, including $35 million for his last fight with Tyson. To go through all that money, so fast, wow.

And between him and Tyson, they earned close to half a billion dollars. Last I read, Tyson was broke and living in a 2 bedroom apartment. Amazing.

[Wickd89]

Just one of all the people that are going through foreclosure; either rich or poor. Let see if he has tons of cash somewhere, but just wants out of this house...

[Porsche-O-Phile]

The thing that's so maddening about stories like this (and probably one of the reasons I get so worked up about it) is here you have a guy who lucks into 5X more money than I'll likely ever see in my lifetime and he doesn't have the presence of mind to even REMOTELY try to protect it. It's like he completely didn't value it or something.

If I were lucky enough to make a million or a couple of million dollars, I'd be damn sure to shelter it, consult with good financial planners and lawyers in order to protect it from potential loss (i.e. lawsuits, taxes, hard times due to illness, incapacitation or family emergency, etc.) Heck, a lot of these things I do NOW and I make <0.1% of what McMahon made. The properties I'm considering (once we reach an appropriate point in the RE market) will be the ones I can EASILY make mortgage payments on. I'm not going to rush out and buy the biggest place I can afford just because I think it'll impress someone - I'll likely buy something very modest and WELL within my means to afford not just now, but 10, 15, 20 years down the road if I'm out of work, on hard times, etc. Basically I want to be able to afford the payment in a "nuclear scenario" if I have to go get a job at McDonald's. That's called "being responsible" and "living within one's means".

However, once again we see the example of someone who doesn't value what they've been fortunate enough to obtain simply p*ssing it right down the drain. It's truly insane. And now half the nation's irresponsible doofuses are rallying behind this guy like he's some kind of victim because of his own irresponsible, short-sighted and poor choices. WTF? Just because THEY made stupid and irresponsible choices too (largely by buying overpriced real estate in a bubble on "funky" creative financing that can never realistically pay down the note) they feel like they have something in common with this guy and hey, if he can cry "victim" and get the bleeding hearts behind him, well gee - it ought to work for them too, right?

It's getting to sound like a broken record from me I'm sure, but boy I'm sick and tired of hearing stories about how the responsible, cautious, conservative and hard-working out there are penalized to prop up the irresponsible, indiscriminate, foolhardy and lazy.

If this keeps up, we're absolutely and positively doomed as a society.

[Sonic dB]

And between him and Tyson, they earned close to half a billion dollars. Last I read, Tyson was broke and living in a 2 bedroom apartment. Amazing.

hmm...sounds like the makings of (another) "celebrity" reality show. "Iron" Mike Tyson and Evander "the Real Deal" Holyfield, living in a 2 bedroom apartment in Reseda. Imagine the hilarity and hijinks...

and toss Ed McMahon in as their live-in butler/consigliere/spiritual advisor....and the fun really begins...

[m21sniper]

What stuns me most of all about these ulber rich people is that they don't buy their houses in cash.

If you're holyfield and made hundreds of millions, what the hell are you doing financing anything for?

Now THAT is stupid IMO.

[Porsche-O-Phile]

It actually makes some sense to finance it.

If you can pay off a significant portion of your purchase with future (inflated, less valuable) dollars, why not? This is one reason I put off my student loans (my biggest expense in life) as long as I could and have refi-ed into a payment plan that has a VERY low fixed rate and terms stretched out over 30 (not 10) years. The dollars I use to repay that note are getting less and less valuable every year, meaning I'm paying less (in real dollars) for the same education.

Also, if you can make more in other investments by putting the money elsewhere and earning more on it than you pay in interest to the bank for borrowing the money for the purchase, you're coming out ahead versus dumping it into a cash purchase and earning nothing off of it - remember, normally real estate only tracks inflation - it is not a good "return on investment" vehicle.

Cash for real estate is not necessarily a bad idea. Yes, there's something to be said about being in debt to nobody, but OTOH, sound financial planning should always be about numbers and earning the biggest returns over time, not emotional "feel-goods".

I doubt Ed was using any of this logic in his decision making though. Just a hunch.

[Porsche-O-Phile]

Just saw this. Pretty funny. Gotta' love the Onion. . .

http://www.theonion.com/content/amvo/ed_mcmahon_may_lose_house?utm_source=cnn00

[Porsche-O-Phile]

Just saw this. Pretty funny. Gotta' love the Onion. . .

http://www.theonion.com/content/amvo/ed_mcmahon_may_lose_house?utm_source=cnn00

[Tobra]

Jeff, that is why the welfare system is doomed to failure. IF you are given something, it has less value to you than something you had to work for, simple human nature

[URY914]

Have you seen Hollyfield's house? Who would buy a castle in the middle of nowhere? He kinda overbuilt for the area.



Trivia: the library is built in a half-circle with floor to 20′ ceiling bookcases … one of which swings away from the wall to reveal a hidden room!
He also has a giant master bedroom where there is a fireplace guarded by 2 large ceramic(?) lions. He also has a 19 foot long bathtub (TRUE!) surrounded by Roman columns. The bedroom also has a massive sitting room with kitchen. His wife’s closet is a huge 2-story room. His trophy room also has a secret door for hiding his Olympic medal!
The wing on the right front is the dining wing. The identical one on the left is Evander’s huge office. The basement has a giant game room, pool room, indoor lap pool, basketball court, handball court and 2 bowling alleys.

[Noah930]

Originally Posted by Tobra

Jeff, that is why the welfare system is doomed to failure. IF you are given something, it has less value to you than something you had to work for, simple human nature

It's not just the welfare mentality, as these people illustrate. The mentality of easy-come-easy-go exists in the other financial extreme, too.

I wonder if these clowns can sue their financial advisors/accountants for all the money squandered?

[URY914]

I remember seeing a Ted Nugent interview where he said while on tour he was driving all night on buses and staying in cheap hotels. But when his financial advisors/accountants would come to a show and meet with him they would charter a plane and stay in 5-star hotels.

He fired them all.

[126coupe]

Originally Posted by URY914

I remember seeing a Ted Nugent interview where he said while on tour he was driving all night on buses and staying in cheap hotels. But when his financial advisors/accountants would come to a show and meet with him they would charter a plane and stay in 5-star hotels.

He fired them all.

I am willing to bet Nugent has tons of $$$$