10/29/22
Quick update, and let me tell you, its about to get real! Did I fail?
So on October 27th after a lot of thought, around 11pm I called my father so that I could talk to him about how I was feeling. The call was to tell him the bank is taking to long, it should not take as long as it has and it was time to sell the land the longer I wait the, with rates rising, the less I will be able to sell the land if I could even sell at this point......telling him that I failed and how bad it feels to feel defeated after all the hard work and money I put in. To date, I sold my home during the boom and profited 60k and I sold 3 of my rentals for a total positive cash flow of 160k all of which went towards this investment. I was talking to him and was like "I regressed father, I owned a personal home and now I rent, I had 12 units and now I have 8 units, and lastly I am out 220k (included the 160 from selling things) " I said "Dad I feel horrible, I put so much into this heart and soul and I am going to end up with a big loss, nothing ever goes smooth for me" I went into a little pitty party because I swear I have to work 4x as hard as the next person on the same things because of my luck, and of course I get the land of a life time at such a discount, and I cant finish it off :(....
At the same time I was also telling him, how am I supposed to feel? In truth, I did everything I could. I got the land at a great deal, I subdivided it to maximize profits, had an exit plan, went though all scenario, and overall in buying the land I made a very good educated investment and it turns out, it was just not the right time, when I bought it, all was good, but who could have foreseen what was to come with Ukraine and other uncontrollable factors. Maybe I could have for-seen inflation, but I did not. At the end of the conversation, I did not feel that bad because I know I made a good investment and did my UTMOST best, I cant control what I cant control. I learned so much! still will make enough to pay off all my debt, made so many connections with banks, lenders, loan officers, other investors, and builders. I would not have created a network like this had I not tried. And this network will help me expand. The lenders both hard money and "a" bank believe in me, so when the time comes, I know have the ability to quickly say yes to deals knowing one of the above will give me a mortgage on it with 20% down.
Prior to this, i was always buying my rentals with cash and doing a cashout refi 6 months later where as now, I can use the 20% down and with 100k buy 5 rentals! before I could only do 1 or 2 every year because I had to wait 6 months in between. SO THATS HUGE and thats why this new perspective has lifted my defeat because now I can really get to work and expand 10x faster than before. If I come across I nice piece of land, I have the lenders lined up if I have a profitable project, so that to is HUGE. So yeah I lost my personal home and 3 rentals, making just enough cash to pay off my debts, but its not that bad ya know. PERSPECTIVE IS EVERYTHING.
I am not going to lie though, in making the decision to sell, I was very conflicted, I wanted to wait longer and longer because the thought of admitting defeat was horrible, its not easy to throw in the towel.
HOWEVER I happened to speak to soon. the next day 10/28/22 the bank called! and later that day I had the term sheet and a binding commitment letter. When I first talked about how I found a bank at 6%, same bank, but with rates up, its up to 10%. Thats okay, I used that number in my prospectus anyway. SOOOO we are getting closer FINALLY. I really needed that phone call, even with all the good that came from failing, it was hard to swallow. Thankfully I do not have to admit defeat just yet :) Until next time, I will keep you posted, take care!
