RECAP: I went on the trip of a lifetime. It was beyond awesome. I returned home and found out that my dad had passed away. It was definitely not awesome. Upon sorting out the details, my brother and I were set to inherit a house in Myrtle Beach, SC. Recap over.
Now…Picture your life at 23 years old.
Were you feeling wealthy? I can almost guarantee you were not.
Did you have student loans? Probably.
Did you have auto loans? Probably.
Did you have a credit card? Probably.
Were you living pay check to pay check? Probably.
Did you DREAM of a day when this would all end?
I remember sitting there on my bed, looking at the envelope in front of me…confused. I had just picked up my mail. “Who even sends letters anymore?”, I thought. I ripped it open and immediately noticed the Sealed Stamp on the bottom with a big, fancy name signed in cursive letters.
I did not recognize his name. The man who had wrote the letter started by sending his condolences to me and my family. How did he know my dad had passed? He expressed that this time must be difficult to handle and that he would like to help take an extra headache off my shoulders.
The next line is what really peaked my interest…
I would like to offer you $130,000 in CASH for the house.
My jaw dropped.
My mind started pin-balling around from idea to idea on what I could use that money for.
Become Debt Free. Travel the World. Buy a New Car.
The possibilities were endless.
So, given that all of the above holds true (broke, in debt, and living pay check to paycheck), this is a no brainer, right? Take the money and walk away stress free, no head aches?
Maybe for the average person…but my inner businessman told me something else. My family, who had been involved with Real Estate before, told me something else. It was almost too easy to sell that quickly…there must be a catch. This man must know something that I do not. Skepticism kicked in.
It’s like the age old question if you win the lottery. Do you take the GIANT lump sum payment or do you take smaller increments over a long period of time? In the moment, the GIANT lump sum screams out to you…but when you actually take the time and think about it…it’s not the most wise move. I think that that applies here nicely.
All signs were pointing to No. There is more to come. Decline and move forward.
So my mind was made up and I decided to keep the house, however, this was not my FULL decision to make. If you remember from earlier, I said, “…my brother and I were set to inherit a house in Myrtle Beach, SC”. Meaning I have 50% interest in the house and my brother and his wife have 50% interest in the house. 50/50 split. One decision, two parties.
Did I want to keep the house? Yes.
Did he and his wife want to keep the house? No.
Sell and take the cash now vs. Hold and seek other options.
Time to mediate.
Breaking it down like that made the process easier. It was clear that they wanted nothing to do with the house, their interests were best met with money now vs. money later. I respect that decision, everyone has a different opinion and everyone has a different situation. So, with the above information, I was able to come up with the idea to offer them a buy-out. I like to think of it as a business decision. A partner does not want to continue on but legally holds interest in the company so he/she must be compensated for it. By taking the FMV (Fair Market Value) of the property we were able to come up with a number that would make both parties happy. Thankfully, they agreed!
Just like that I was the sole owner of a property in Myrtle Beach, SC. (Side note, it didn’t happen that quick but I will elaborate on this later on) What this really meant for me, I had no idea.
Me…a property owner. I felt a little stronger that day. I started to feel a little like the businessman I always knew I had in me. I like to think this was something that my dad would have done. He was a numbers guy and loved the idea of making a business decision. I knew this was going to be the start of a new adventure, the path still unknown and the destination still unknown but I was headed down it with all the confidence in the world.
…and that’s when everything started to head down hill again…