I wonder, for a house of about 2500 square feet, what is the approximate sales price you would assume based just on the scatter plot data?

Let's have a drink. In a minute, Danny.

So what's 75 of the value of my house?

We are not talking about 50,000 dollars here, or 100,000 dollars there, or one million dollars there.

There's 50,000, but I expect to have that by tomorrow morning.

Two hundred thousand clean, no tax bucks. Two hundred grand.

1.6 million...

Six million dollars.

You got any reason?

6 is a lot.

YOU SEE? 10,000.

(Music) Auctioneer

90,000.

Well? 750,000.

Right.

Well that's a 1 million house, right?

But let's see, 2 million minus 1 million.

You're looking for 5 million at what valuation?

Five thousand apiece.

And what he did was he wrote down on the board

You kidding? A hundred grand.

Property taxes.

Here's 10,000.

A quarter of a million dollars, sir.

50,000 to Copenhagen and 100,000 deutsche marks to Helsinki.

Three kilo roaster, 6.6 pounds, for the metrically challenged 13,000 dollars.

So my equity just tripled.

That equals what?

We said it was a dollar per cupcake, right?

Assets equal liabilities plus equity.

Apple managed to pare down the Mac's price to 2,500

So let me draw what our balance sheet looks like.

I'm getting this crummy return on asset.

And I get 4 on that.

let me switch colors.

Even though the house appreciated by 50 , right?

Yes, the answer is 2.

There are actually examples in Southern California, and in

In total they wanted around 100 million Swedish crowns, right?

YOU SEE,

David Cohn How much money does it take to do this?

Let's say my initial balance sheet is

So let's think about it a couple ways.

You got a bundle waiting in L.A.?

INAUDIBLE ?