|
|
 |
|
| |
|
|
| |
by Willard Michlin
|
|
print article · comment on article
|
|
| |
previous |
page 7 of 22 |
next |
|
| |
|
|
| |
Note: The escrow fell through and the building was kept until this update, December 5, 2004. The building is now in escrow for $1,583,000
What did I do about San Bernardino? I contacted the seller/lender and asked him if he would like me to pull the security guard out of the building and let him have it back in foreclosure. He didn’t want it back, even though he pretended that he was willing to do that. He offered me $25,000 in incentives to get me to personally lend the money necessary for the completion of the building, so he wouldn’t have to take it back. For 3 months he tried to get me to put money into the building, with the idea that once I put my money in I wouldn’t walk away from it. The real story was that I wouldn’t put a dime into that black hole until I figured out how to make it recover at least $100,000 of Kevin’s lost money. I asked for a $70,000 discount on the note, and offered to pay him off. We negotiated for two months. Just when I was ready to finish the deal, the seller sold his note to someone else for only a $30,000 discount. I was not able to make the money I wanted because now the new note holder wanted 100% of interest and principal due. This threw a monkey wrench into my negotiating. All this time, I had a buyer standing in the wings to buy the building from Kevin while I was negotiating. I was then forced to sell the property to this buyer and Kevin recovered only a little bit of his investment. The lender and I were both playing a high stakes poker game. I lost this round. If I could have gotten the payoff reduced, Kevin would received a large hunk of money from an “as is” sale. This is what I call playing “Craps” on a very big Monopoly |
|
| |
|
|
| |
previous |
1·2·3·4·5·6·7·8·9·10·11·12·13·14·15·16·17·18·19·20·21·22 |
next |
|
|
