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Unauthorized biography of Russ Whitney by John T. Reed 1 The red entries are things I do not know or am unsure of. If you can help me fill in those blanks, please do. Thanks, John T. Reed COLUMN HEADINGS: Date Event 11/18/1955 born Russell Andrew Whitney in Levittown, Long Island area 1958 Whitney' biological mother "left" (p. 19 Building Wealth). It was a divorce, actually, and the father got custody. His aunt helped raise him. Around 1955-1958 Whitney tells people he grew up in New York City"”in particular, Brooklyn and Queens. I checked and could find no trace of his family there. He lived in the home his parents owned in Levittown, Long Island, the archetype American suburb. 1958-1961 Whitney and his father move in with his father' sister in an apartment in Smithtown, Suffolk County, Long Island. 1961-1964 Whitney' father marries the woman Whitney calls his "wicked stepmother." (p.22 Building Wealth) Six-year-old Whitney and his father move into the rental apartment where she lives with her seven-year-old daughter by a previous marriage at 64-57 Springfield Boulevard, Bayside, Queens, New York. 1964-1970 Whitney lives with his father, stepmother and step sister at 42 Ocean Avenue, Highlands, NJ. around 1968 Attends Henry Hudson Regional Junior High School, Highlands NJ, reportedly Class of 1974 if he had stayed and graduated 10/1/1970 Whitney' biological father Russell Walter Whitney dies in Red Bank, NJ and is buried in Navesink, NJ. (born 2/27/31, see the Social Security Death Index on the internet and search for Whitney in New York State) Around 1971 Whitney runs away from his widowed step mother to live with his father' sister in Reno, NV. Stepmom said he may have attended school in Reno area. Whitney later harrumphed that it was a school for troubled boys, not a military school. Is that supposed to be better than a military school? May have been sent to military school by his Reno family. He later runs away from her as well. Around 1972 Whitney says he moved in with his half-sister, but that she could not afford to support him so he left. Unknown location, probably Highlands, NJ area. Around 1971 Whitney stops attending high school during his sophomore year at Henry Hudson Regional High School, Highlands, NJ. While there, he reportedly used a baseball glove with an opening in the heel so he could put a Kotex inside to protect his palm. If he could have read my book on baseball

coaching back then, he would have known you"re supposed to catch the ball in the web, not the palm. I suggest to coaches that they cut the palm out of an old glove to get this point across to young players. Truth to tell, I had a piece of foam rubber padding in the palm of my catcher' mitt when I played Little League. Once in a freshman or J.V. baseball game, Whitney tried to make a diving catch, but dropped the ball. However, his body was between the ump and the loose ball, so he picked it up then held it up to "prove" that he caught it. The ump called the batter out. That' our Russ. Actually, both Russ and his stepmom deny that he played high school baseball. I heard the story from the guy who revealed to me that Russ lived in NJ. He said he went to school with Russ and knew him outside of school. To those in the "It ain"t cheating if you don"t get caught" school, this is clever baseball. I am from the other school that says if a high school or college coach taught such a stunt to his players and got found out, he would be summarily fired. I would also point out that persons who deal with Whitney should wonder if he is not misleading them in some way like he did that umpire. If I were an editorial cartoonist, I would draw a series of cartoons, each with Whitney in a baseball uniform lying on the ground holding up his glove to "prove" something. Only instead of a baseball, the gloves would contain little signs saying "Amazon best seller," "Millionaire at 27," "flourishing business," etc. My sources tell me Whitney was not a bad athlete, a good dribbler in basketball. He lived at 42 Ocean Avenue, Highlands, NJ, which his parents owned. There apparently are no Ocean Avenue houses for sale at present. Houses currently for sale on Beach Boulevard, which is a half block away, sell for $250,000 to $350,000. As you can see on a map at Mapquest.com, (Type in the address) Ocean Avenue is only a block long and ends at Beach Boulevard which is the last street adjacent to the water. The family were members of the local swimming pool. Whitney' book Building Wealth claims he had a "lousy childhood" and that he went from "rags to riches." Most people would consider themselves lucky to live so near the ocean"”as evidenced by the elevated home values. Also, it seems unlikely Russ was in rags if he was living in a home worth $250,000 in today' dollars. I spent my elementary school years in Wildwood, NJ, another seashore resort about 130 miles south of Highlands. My Philadelphia-area relatives were always raving about how lucky I was to live in Wildwood, which was a special treat for them to visit. I was a company commander in the Army at Fort Monmouth, NJ at the same time Whitney attended junior high and high school in Highlands. Fort Monmouth is about four miles from Highlands. 1972-1976 I have been told that this was a very interesting period in Whitney' life. I would especially appreciate hearing from persons who could tell me where to look for details. Whitney makes only vague statements regarding this period, including that he had a "bad attitude" (p. 17 Building Wealth), that he was "desperate" (p. 19), that everywhere he turned he "hit a wall" (p.19), and that he was "naive" (p.19). These provocative words hint at intriguing events. He also refuses to reveal his geographic locations at the time. During this period, he admits to using a "fake drivers license" to drive a cab when he apparently had no license at all and lying about his age to get another job and "going from job to job" (p. 23). I have learned (no thanks to Building Wealth) that he ended up in the Albany-Schenectady, NY area around 1976, but his whereabouts and activities before that are mysterious. 8/30/74-3/9/76 A real estate investor with a B.S. in criminology who had worked as a police aide for four years saw the above entry and dug up the following facts about Whitney. Russ Whitney was inmate #74B1135 at a state prison in Queens, NY. He was incarcerated for second degree robbery, a Class C violent felony. The maximum sentence for that is 15 years. Whitney was paroled after 19 months. Reportedly, his parole officer arranged for him to get a job at Tobin Packing Co. ("the slaughterhouse") in Albany, NY. Whitney' in-house attorney says Whitney was a minor"”age 17"”when he committed the crime and that he was homeless and committed the crime to support himself. I have not yet confirmed that. If it is true, I am surprised that the record of his conviction and imprisonment would be public. Also, I do not think it is accurate to describe Whitney as homeless when he was a teenager. As far as I can tell from his book Building Wealth, he was not homeless. Rather he simply chose not to go home. It would appear from his book that he could have lived with either his stepmother or his aunt, did live with each for a time, then chose not to live with either for unspecified reasons. 1972-1983 Whitney takes and passes test for General Equivalency Diploma (G.E.D.) (Overcoming the Hurdles and Pitfalls of Real Estate Investing p. 2) He describes self as "high school dropout" in later book Building Wealth and makes no mention of G.E.D.. The criminology guy says it is extremely common for convicts to earn a G.E.D. while in prison. I do not know where Whitney was when he earned his. He says Coxsackie Correctional Facility in NY. Whitney says he dropped out of high school during his junior year. He was in prison at age 18 3/4. New York State parole rules require inmates to get a G.E.D. or other similar credential to be eligible for parole. Whitney was paroled. Mar-76 Starts work at Tobin Packing Company, Inc. in Albany, NY as union member helping slaughter hogs for $6 per hour"”$300 per week with overtime. (Overcoming the Hurdles and Pitfalls of Real Estate Investing p. i 1984. By the time he wrote Building Wealth in 1994, he claimed his pay at Tobin was only $5 per hour. His next book will no doubt say that his compensation at Tobin was really 5¢ per hour and all the gruel you could eat.) $300 per week is $300 x 52 = $15,600 per year. The median income in the U.S. for persons aged 20-24 was $9,800 in 1978. The minimum wage in 1976 was $2.20 per hour. Compared to the average person his age, Whitney was living high off the hog, so to speak. Since his wife was also working there, they probably made about twice this amount as a household. In 2003 dollars, his 1976 $6 hourly rate translates to $19.40, his annual income translates to $50,446.40, and if his wife made the same, the two of them earned $100,892.80 a year in today' dollars. This is what he refers to as the "rags" period in his "rags-to-riches" legend. If you read this after 6/03, you can redo the calculations using a simple cost-of-living calculator at https://minneapolisfed.org/research/data/us/calc/. 1976 Whitney lives at Apt. 10-B, Harmony Hills Road, Albany, NY. 518-456-6069 3/11/1977 Purchases and moves into two-story house 3160 Guilderland Avenue, Rotterdam, NY. 518-355-9048 3/11/1977 Whitney and wife give $14,500, 15-year, 8.5% mortgage to seller of Guilderland. 8/10/1977 Whitney' daughter born 1977 Conventional existing home mortgage rates at 9% 6/7/1978 Whitney and wife purchase duplex at 455 Hulett Street, Schenectady. 6/9/1978 Whitney and his wife give mortgage on Hulett Street to Schenectady Trust Company 6/12/1978 Above mortgage on Hulett recorded. 7/20/1978 Seller of Guilderland changes amount owed to him by Whitney to $7,000, extends term one year, lowers payment to $68.94, and subordinates to Schenectady Trust Company mortgage 1978 Mortgage interest rates 9.7% 1/3/1979 Took real estate license test. Three months? The New York state test must have been tough. The tests I took in NJ and CA only took a few hours. Maybe he means he took it several times. Apr-79 Joins Plum Realty 7/3/1979 Buys 20 Swan Street, Schenectady, NY on land contract Fall 1979 Nutty deal regarding 16 Eagle Street, Schenectady 11/15/1979 Buys 812 Grant Avenue duplex on land contract (which I could not find, by the way, when I visited Schenectady"”must have something to do with changed house numbers) claims gross rents $4,320 and cash flow of $2,000. I cannot verify the gross rents. If correct, the net operating income would be around $2,400 a year. Then you would subtract the mortgage payments to get the cash flow. He says he only paid $9,747 for the property because it was in a "marginal" area where "the only way it could go was up." I was there in 2002. It did not go up. I doubt that many of Whitney' followers would want to own property in such a neighborhood. Whitney says comps in the area were $18,000 to $34,000, but does not explain why the seller would give him such an enormous bargain. Dec-79 Fire does $18,000 damage to 812 Grant Avenue. When you can get almost twice as much from a fire insurance company as a building cost, you have what the insurance industry calls a "moral hazard," that is, a temptation on the part of the owner to burn down his own building for a bigger profit than he could sell it for. I have seen no evidence Whitney did that, but I am surprised that an insurance company would pay so much for a building that was bought for $9,747. 12/3/1979 Buys 8 Hawk Street, Schenectady, NY Dec-79 Whitney uses $6,000 of his total $7,000 cash, and borrows another $6,000, to invest in the Confederation of Organized Purchasers, Inc., which he describes as a "furniture co-op." As one of its salesmen, he persuades many others to pay $550 for memberships. He was supposed to be paid commissions on these sales. He says he never was paid a penny. 1979 Mortgage interest rates at 11.16%

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