It's pretty clear that Hick is itchin' to start a new project. Monday morning, he called me with a proposal.
"I was in [one of our financial institutions] to get some money out of my account. And I saw Loan Officer. The one who gave us the loan to build our house, and to buy our rental duplex a while back. I asked if he had any houses coming up for sale, and he said yes. That there's one in School-Turn Town that will be ready sometime in February. While he was checking to make sure with his secretary, she said, 'And there's one for sale on the courthouse steps at 1:00 today.' So I got the address, and I'm on my way over there now. He said the price they're starting at for bids is [redacted]."
"We can't really do that right now. Our money is tied up in the Double Hovel. Yeah, we could come up with that amount. But The Pony can't contribute half right now. Taxes are due, and insurance. It's really not convenient."
"Loan Officer said that the money is due TODAY, but that if I'm interested, he will go over there and let them know that I'm good for it. We could get a loan, and probably not have to put anything down, because we can use the flip house for collateral on the down payment."
"Still, it will take money to renovate the house, and The Pony's money is tied up. So I don't think this is the right property for us. Maybe the other one in February."
"He says that one is really rough."
"So it will be cheaper. And we will know about it in time to prepare. And maybe the Double Hovel will sell. At least we could buy it and take our time paying for the renovations."
"Okay. I'll call back and tell Loan Officer. He wanted me to let him know. I said I'd have to check with you."
"Yeah. I know you want to be buddies with him. But this is not a good deal RIGHT NOW for us. I'm not even telling The Pony, because I know he can't afford this."
"Yes. We'd have to put up all the money. So I'll call Loan Officer."
When Hick did that, the Loan Officer apologized, and said he had checked on it, and that the money WOULD be due at the time of the auction. So that's good to know. A good decision, because that would have been a lot of scrambling to get the money in such a short time.
Another deal will come along. We just don't know about it yet.
This close to Christmas is not a good time to be scrambling for money. It would be different if you had that much to spare just sitting in the bank, but waiting for the February house is a better idea.
ReplyDeleteYes. It's basically the short time frame to gather the funds. It's sitting in a CD, but we don't want to lose the interest on it by taking it out of there. Since The Pony is our partner, I'd like to wait to see if the Double Hovel sells, so he can get his investment money back to put into another venture.
DeleteTrue! Don't lose money to make more money! In the meantime, the price might come down.
ReplyDeleteWe wouldn't be "losing" the money. Just having it tied up in another project for a while before making a profit. Hick says if the financial institution didn't get their starting price, they would keep the property. Not sure what they'd do with it. But they wanted the money that was borrowed against it. Maybe they would find another way to sell it. I don't know how the law goes for that kind of thing.
DeleteI thought of you today - there was an article on the BBC website about a woman who was searching for her kitty, and they think she fell down a sinkhole :( I thought of the one you have in your area!
ReplyDeleteI saw that headline on the UK Daily Mail right before I came here! I didn't read the article, but I thought about it being in Pennsylvania. That's where they have some underground holes that have been burning for a hundred years, I believe! Something to do with coal mines. Made me wonder if she fell into a nice warm sinkhole, not a cold one like ours right now!
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