Post 2 from 5 - everything got complicated here…
In 2011 I bought the part of my partner at WebNews (a software company I own to this day).
Terms and milestones were paid (within six months to transfer all the money to him) and now all I have left is to sell an apartment (which I planned to sell anyway), take my profits from the deal and pass on what my partner deserves. All of this was planned as part of my path to my ultimate goal (the target in this case was getting 100% of the shares in the business, which would increase my monthly cash flow).
I sold the apartment quickly. The first payment of course went to the bank to cover the mortgage and now I waited for the other payments to complete the 2 transactions.
Here everything started to get complicated.
A few days after signing the contract, the buyer called me and told me that her appraiser did not approve the apartment. I didn't understand what she was talking about since I had a mortgage and a mortgage (already covered). She was very pressured and asked to cancel the contract.
From there it was passed on to lawyers, of course she would not pay me the 10% fine on the purchase value (according to the contract). In addition, she did not agree to find another buyer. She wanted a 10% compensation claiming that there were anomalies in the apartment and that it was me who had broken the contract.
She quickly filed a lawsuit against me and it went to courts and lawyers.
I don't know which of you used to be in court, but it's not a pleasant experience (even with justice in your hand at 100%). This was my first time in court.
First, pay a lawyer to represent you. That's before he even wrote anything. It cost me 100,000 ₪ that I didn't have.
Suddenly I find myself in a deep and serious problem. I have no spare cash, I owe my partner a few hundred thousand shekels, get stuck with the apartment and do not have enough time to sell another apartment, whatever it is that will disrupt all the plans on the way to the goal.
I decided to treat it as background noise. I've always been told that you have to suffer for success. I decided in my head that it was my suffering and I would absorb it because success was just around the corner. I really believed that.
I didn't sleep for a few days. All I did was think about how I get out of the distress I was in.
אז מה עושים?
1. transparency. I took my wife for a hard call and told her that in a month we have no money for the cottage.
2. I immediately put a renter into the apartment. The tenant paid me 4,000 ₪ every month and I remind you that the mortgage is zero (I closed it with the money already paid on the apartment).
3. WebNews - I've made Excel with 100 clients I've worked with before. In two days I called everyone and closed transactions over NIS million.
4. Bank - The most important thing is the end. Still have to pay my partner and I have no money. I went to my bank and didn't leave until I got a 500,000 solo loan (and even with interest : )).
It wasn't easy, even very difficult. A lot of my "threats" to the bank. I was actually with my back to the wall. I have nothing to lose at that point, but I haven't broken. In fact at that point I discovered how much power I had. Nothing breaks me or breaks me.
The money for the partner was paid and there was a cottage on the table. everything worked out
Regarding the apartment - after 4 years it was decided that the buyer would pay me the balance of the contract, in addition to me paid 350,000 ₪ compensation and all the rent (192,000 ₪) paid to me remained with me.
Everything ended up being excellent, but I wouldn't repeat it again : ) Well maybe yes… ..
Remember - anyone who remembers where he is going will not succumb to the difficulties of the road.
Image Credit - Chris Potter, CC BY 2.0
Liad Ajami
Beauty by Post Gil Rosenberg, I would not want to be in your shoes then, but without a doubt you surpassed yourself here… ???
Age Thanks for sharing
Good luck in all?
Age During the 4 years of court hearings, how much did the value of the apartment increase? Did the value not exceed the compensation?
GilRosenberg You just have to write? Book ? on real estate
There is simply no king ????
Age Why sell an apartment that earns you NIS 4000 a month? Maybe in advance, it was worth you to press the bank to give you the same loan without selling the apartment…?
Of course, in retrospect, everything worked out fine except for the legal process headaches.
Breathe
Inhale friend.
During this whole process
Did you do everything alone or did you consult with people and the like?
Wow
Just fun to read and learn from it a lot ???
Thought flexibility is a solution to many problems - your way is amazing!
Your writing is fascinating!
And thanks for sharing the journey…?