Learning the Lessons of Life - Our 'Divestment'

Tomorrow I will be closing the chapter on one of the hardest (most expensive) lessons I have learned thus far in life. I have termed this our 'divestment' which interpreted, means dumb investment.

Two years ago, Melissa and I decided to build a spec home in South Jordan along with a partner. Our intent was to build the home and then sell it. The home was to be finished in September 2006. Everything seemed to go pretty well, until near the end as they wanted us to start inspecting the work on the house, there were a number of items that we required they fix. Finally in December 2006, they had the house (according to the builder) ready for occupancy. However, they had still not completed any of the items we had addressed with them, so we would not close on the property. They started getting a little frantic (they didn't like paying the interest on the home month after month), and they eventually fixed everything that was wrong with the house. So, in February 2007, we closed on the house and started to try and sell the house. Well, at this point in time, the housing market had already started slumping and so, we were not able to sell the home. In the summer of 2007, we had an offer to rent out our home (actually it was a lease purchase option), and since we were continuing to make the full payment on a nearly 500k home each month, we decided to try the rental option. Getting renters, we would later find out, would be a huge mistake (not necessarily getting renters, but these particular renters). Anyway, finally in January, we were able to get rid of the renters and were able to attempt to sell the house again. Of course, during the time that we had renters in the house, the housing market continued to deteriorate (especially in the >400k market). So, just recently we found a buyer for our house and we signed the closing documents yesterday. Tomorrow I will be sending a wire to the title company for the amount that we need to pay off our original loan (the amount of which should make me sick, but I figure, I can't change the past, I can only learn from it).

So, from all of this, what have we learned? Well, first of all, investing is all about timing and we had bad timing on this particular investment. Second, I learned that I am supposed to be in the house that I am right now (we prayed about moving into the other home, but felt strongly that we needed to sell that one, even if it was a loss). Thirdly, if you are ever going to be landlord, then you should go into knowing that you will have to treat your renters as business customers - as much as you want to treat them as individuals and try to be understanding with them, they will unfortunately lie to you if that means they can stay an extra month in the home. Lastly, this experience has pulled me and Melissa closer together and helped us realize our potential (without disclosing the details of the home - we will be able to pay off the debt we incurred during this investment and our current home in under 5 years). This has humbled us in a time when we were slowing falling into the assumption that all was well (which according to 2 Nephi 28:21, we all know is one of Satan's tactics to lead us slowly down to hell). This has helped us realize the truly important things in our lives (family, time together, and each other).

Well, if you have actually made it this far in this entry, then you are to be commended for your patience. Hopefully, you will be able to learn from our experience and not repeat anything that we have learned the hard way.