While on a business trip to Texas, David attended a mortgage foreclosure auction. At the auction (held on February 4, 1999), he acquired an abandoned sugarcane farm near Pearland. David financed most of the $30,000 purchase. In view of the expansion trend in nearby Houston, he regarded the purchase as a good investment. Early in 2011, David was contacted by a Houston real estate developer who offered $250,000 for the property. Horrified at the prospect of a large taxable gain, David ultimately arranged for an exchange transaction by written notice on May 10. In exchange for several vacant lots on Padre Island, Texas, worth $240,000 and cash of $10,000, David transferred the property to the developer. The exchange took place at an attorney's office in Houston on June 20, 2011.
On May 9, 1997, David's father gave him 400 shares of Tango Corporation common stock as a birthday present. The stock had cost his father $16,000 ($40/share) and was worth $20,000 on the date of the gift. In 2007, when the stock was worth $140/share, Tango declared a 2-for-1 stock split. On July 27, 2011, David sold 400 shares for $20,000 ($50/share).