Protecting My Assets
It has been quite the busy month of February as you can tell from my lack of posting. I have been trying to negotiate and restructure a deal with a partner in the commercial building that we own (or rather bank owns). He is the tenant and wanted to construct the building since he was tired of paying rent to someone else. It makes sense on paper, but when the economy struggles then having lower fixed costs make the most sense.
Taking Over the Building
Since I had quite a bit invested in the building, I determined it would be better to suck it up and just take it over entirely than to let things languish like they had for the past several months. I would have ultimately born some of the responsibility anyway so it is better to get it under control now, get in the bankers’ good graces and figure out some more solutions down the road if necessary.
But it will hamper the debt payoff plan. You can read more about that at my newest blog, Shredding Debt. Despite that, I still plan on being aggressive and will see what I can accomplish over the next 3 years. I will know more once the building payments are caught up and I can see what my budget and cash flow will look like the rest of the year.
At least the money that is spent will create some real estate losses and lower my tax bill so the ultimate impact may not be as bad as it could be. Plus I will have 100% control of the asset so that when it is paid off, I will be in great shape. It is just the journey that might be tricky.
Looking Forward to Learning
I do look forward to learning more about the commercial real estate business and making new contacts. I think it will be a great experience that can only help me as I continue to become more involved in real estate. Ultimately, I would like to own more property. It will probably be after the consumer debt is paid off and some more of the kids move out of the house. But having something to do with my time after I retire from my full-time employment will be very good.