So this guy, was a “real estate syndication broker” (a developer agent) in Los Angelos, and was seeking funding for a commercial apartment project from CEO of Brookside Savings and Loans (a bank). And he asked for T&C of financing the deal, and upon seeing a fancy spreadsheet of the CEO’s financial modelling, he asked if he could work for him. The CEO gave the guy that spreadsheet of raw numbers, assumptions and projected return for a deal and asked him to reverse-engineer the formulas. And he did, after a few weeks of after-hours work. And he got offered a job as “junior mortgage deal guy”. For $100,500 a year! In 1983! That’s like $300,000 in today’s value?
An irrational exuberance but also what a crazy experience to ride on the bubble in America, the mother of all bubbles.
So this guy, was a “real estate syndication broker” (a developer agent) in Los Angelos, and was seeking funding for a commercial apartment project from CEO of Brookside Savings and Loans (a bank). And he asked for T&C of financing the deal, and upon seeing a fancy spreadsheet of the CEO’s financial modelling, he asked if he could work for him. The CEO gave the guy that spreadsheet of raw numbers, assumptions and projected return for a deal and asked him to reverse-engineer the formulas. And he did, after a few weeks of after-hours work. And he got offered a job as “junior mortgage deal guy”. For $100,500 a year! In 1983! That’s like $300,000 in today’s value?
An irrational exuberance but also what a crazy experience to ride on the bubble in America, the mother of all bubbles.