When I was in my twenties I was offered a Real Estate deal off the plan which seemed like a fail proof way to establish myself a better portfolio in the real estate industry. This was going to sky-rocket myself and my family into becoming one of those high roller property deal makers that made millions from investing in property.
When it came to the night where I would secure a property I realised that not only was I given the middle townhouse (not happy) I was also told that we had to go halves with my friend who had come with me to this deal (really not happy).
I felt privileged to even secure any of the properties due to the demand but was in no mood to share it with anyone. Angrily I left hoping that my friend would pull out allowing me to greedily take all of the financial benefits it would bring for myself. Guess what? She pulled out unable to financially continue with the deal.
It was the fourth property now in my portfolio and I knew that the area we were building these particular town-houses was fresh and new, my portfolio of property was growing and so was my bank debt. After the town-houses were build and the final inspection was done I was excited about selling the property and making my money that I had so eagerly awaited. This was going to be my way of helping to support my family, why should my husband have to do it all?
Hmmmmmmm BUT the money never came.
Instead we had the property on the market for over two and a half years and in that time rented it to a family with five children, this was a two-story two-bedroom middle town house with no backyard but over-looked a park. They were the only application to rent and there were no bites to buy it. While they rented the town-house from us there were numerous building defects that we had to keep addressing including the shower upstairs leaking and staining the kitchen ceiling downstairs. The rent never covered the repayments which had us paying out the difference each week.
It was the middle townhouse and the smallest. The suburb, which I thought was up and coming, was now over-dosed with exactly the same town-houses for purchase and many bigger ones being sold for a much lower price. I felt doomed. As a family we had to sell all our other investment properties to financially support this stupid town-house. It then got so dire that we got to the point that we had to sell our family home, but just when it was time to give up and put it up for sale we were given an offer on the town-house. The amount offered was less than it cost us to build it originally, but we had no choice and we took it. We were able to hold onto our family home.
After adding up how much we had lost from this money-bleeding deal it had hit six figures. What had I done? I had been so greedy at the start and all I saw were the dollar signs which in the end only came from my pocket. With only our family home left and a debt up to our eye balls I decided that I would never owe a bank money unless it was my family home ever again, no more investments.
In time I realised that the deal I had made on that town-house was the only deal I had ever done with my head, only choosing to do it so that I could get one up on my friend. I wanted to be the rich one, I didn’t want to share the success. All the other investments we had done were bought from my heart bringing joy to me when I had bought them and sadness when I had to sell them. They would have made me money if I had not said yes to this one particular deal, the town-house.
Although that was so long ago I will never forget the lesson it taught me, I will only make decisions from my heart now and only if it feels right and good. When things seem logical to my mind but I feel weird about it I don’t do it and guess what? It has never failed me.
Listen to your heart she knows best.