Sad Realization
Posted on March 24, 2008 - Filed Under Business |
Facts are a persistent buggers. They have this way of percolating up, no matter how far down they may be buried. One day, and usually the wrong day, the facts pop up and are difficult to ignore.
Last week, my finances were long overdue for a hardcore brutal analysis. Some self-denial prevented this from happening sooner because my Spidey-sense told me that the results would be as appetizing as Roachel Ray’s pop-corn soup.
My prognosis: Negative.
In a near recreation of the Bears and Stern model of last week, my situation required consulting higher authorities. People smarter than me. Friday afternoon was the conversation with the Real Estate Agent. Saturday was spent with my Mentor. The results of both conversations were predictable if not simple: time to sell.
Project#1 will remain in my stable for years to come. Project#2 will make the sacrificial nose-dive into the market. The asking price was determined, based on other properties that are currently in escrow or have sold within the last 4 months. It’s a decent asking price: by decent, I mean break even.
Before, the announcement was made that this project would be a return of 30%. When I scrutinized that number, little pesky things such as taxes and realtor fees weren’t included. With all the expenses accrued, it’s possible the write-offs will stave off a loss. More than likely, the situation becomes a “break even” proposition. It pains me to admit as much. This blog however was created to document both those things good and bad. The first project was a rounding success. The second project: not so much. The best course of action now is to seal the hemorrhage and get out.
Everything involves some level of risk. Sometimes you win, sometimes you lose. It’s the nature of the game. Some expensive yet important lessons were learned from this project. A real wake-up call. Perhaps that is what I needed.
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