I have been sort of busy. Started this week off with tons of work on my computer.. Also did some spring cleaning in and around one of my houses as well as got my lawn mower serviced and ready for summer. The weather has been awesome so I have been spending as much time as possible outdoors enjoying the nicer weather.
Yesterday was full of ups and downs. I went to an auction to a farm I wanted to buy. The auction was in Gothenburg so drove up in the morning and got to it. I had a pretty clear budget and knew pretty well what I could pay for it and still make profits. I won the auction a bit lower than expected which was great, but the banker who was there and responsible for selling the place (a foreclosure) wouldn’t accept my winning offer. He wanted more than twice as much which would ruin the deal and kill all profits and he was completely unwilling to go down.
This was the third time this farm was auctioned and my bid was the best so far. To me, three auctions ending at almost the same price put a pretty good market value on the property. For them to want twice as much is silly. The banker then made the mistake of telling me what he planned to do. As he had given the former owner too much credit and wanted to recoup as much as possible of that to don’t look like a fool, he planned to use lawyers to cut the farm up in pieces and then have realtors to sell the different pieces. You know why?
I think I just figured this out. If the banker would sell the farm to me for what has now been established as the market value the bank would make a loss of approx. 1 million SEK. That would be this bankers fault and he probably didn’t want the bank to see that. But! If he went ahead and cut up the farm in pieces and goes through with selling the pieces, there is actually a chance of him getting a little bit more back. It’s actually sort of what I planned to do. However, the cost of lawyers and realtors will excuse all the potential earnings of that job for him so there will most likely be an even bigger loss.
But. If he can get some more money back from that same property, it makes him look a bit less like a fool. And he would probably get a little bit better results. The cost of lawyers and realtors are just that. Costs for the bank. They want us taken in consideration when calculating the loss he is responsible for. So therefore, I’m pretty sure he would happily spend 600 000 of the banks money on lawyers and realtors to make himself look 300 000 better.
Needless to say, I don not like this guy! I don’t like people who are in business, but unwilling to negotiate. That is what business is about! The fact that he doesn’t take responsibility for his mistakes didn’t make him look any better. But I guess that’s usually the case with people working for salaries..?
