An investor from out of state called me, and he told me a story that had me in tears.

Of course I’m a marshmallow when it comes to animals, so it doesn’t take much.  I’ll try to condense it.

The investor who called me (we’ll call him Newton Newbie) had asked for advice from another very experienced investor (we’ll call her Selena Seasoned).  Newton Newbie was negotiating to purchase a property from Lady Elderly, who was selling her home of 40 years where she had raised her family, nursed her husband through illness, and was now living alone but with 6 pets.  She was moving to an elder care facility once the house was sold.   She didn’t want to list with a realtor and have people traipsing through her house for showings since she had all she could do to care for herself and her pets.

Newton discussed the negotiations with Selena Seasoned, and Selena assured Newton Newbie that if he was able to negotiate a purchase at X price, then it would fit Selena’s criteria for purchase, and Selena would be able to purchase the property on an assigned contract, with an assignment fee built in that Newton Newbie would realize at closing.  Selena was a well-known experienced investor who did many creative deals and was considered by most to be very knowledgeable.

Newton Newbie was able to negotiate this purchase at the price discussed.  He signed a purchase and sale agreement with Lady Elderly.  Lady Elderly then began the process of getting ready to move to her new facility.  To do this, she had to relinquish her pets, as she could not take them with her, and she had no family members to take them.  This was very painful for her, as they were like family to her and she loved each one of them.

Newton Newbie took the contract to Selena Seasoned, who then said that the market had changed, and that the price was now too high, and she couldn’t buy the house.  Unwilling to give up, and since he had made a commitment to Lady Elderly, he tried to sell the contract to other investors, but was unsuccessful.  He had no cash to buy the house, and couldn’t secure financing.  He was unable to meet his commitment to purchase the house, and therefore could not close on the deal.

He notified Lady Elderly that he could not buy the house, only to find that she had euthanized her older pets and given up the healthy dogs and cats to the local shelter.  Lady Elderly was now still in her house which she had not sold, and was now completely alone, and her beloved pets were now gone or in cages in a shelter, bewildered and separated from Lady Elderly and each other.  Once you surrender an animal to a shelter, you can’t retrieve it.

I’m a big animal lover, and this brought me to tears.  For both the lady and her pets.  I’m glad I don’t know the parties involved, it was difficult enough to hear the story.  Newton Newbie tried his best, but it sounds to me as if the adult in this relationship was Selena Seasoned, and so was largely responsible.  Although to be fair, I heard only Newton’s side of the story and not Selena’s.   So the moral of the story?

Be careful of your commitments.  Say what you will do and do what you say.

Disclaimer:  Although it’s highly unlikely that anyone reading this would know the parties involved, since it happened hundreds of miles away, I’ve changed the names to protect the innocent.

Your partner in profitable investing,

Ann Bellamy
Buy Now, LLC