Tomorrow will be a bitter sweet day for my father and I. We purchased a piece of property in a big town with a lot of growth. Then we picked a floor plan had it drawn. Took the plans and had at least 2 quotes on all things needed to build. Good profit, good lot, lets go. With septic info approved it was time to apply for building permits. Then it happened we got cold feet. Was the market strong enough to sell a big house, what was happening, it was crashing all around us. The housing market was going bad. We did not build that house. We put the lot back on the market. The bad part is we borrowed quick money (for the land) at a high interest because we new that we would consolidate the land into a construction loan. Well that never happened and for the past 2 years we have been paying this high interest rate. It is kinda like those interest only loans. So tomorrow we are suppose to close on the land. for less than we bought it and a loss of all the interest. I am glad to see this piece of dirt go. If I were to go back I don't know what I would change. I do know I would have borrowed $ in a different manner. The only good part is we purchased a house this week and have borrowed against it to cover the loss on the land. With this being a flip we should be able to recoup. But it is a hard lick. Bad investing has brought down many companys. Lucky for us this is just one bad investment. Bigger is just going to have to turn up the heat and sell an extra house.
If there's good news to be had it's that you've sold the property at all in an in the toilet economy. And you've said just that. As investors, we all take hard knocks. Comes with the territory. Ya just have to grin, bare it and act like everything is just peachy peachy keen.
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