So here was a scenario that is kind of interesting based on a real life situation. Let’s say there is a building that costs one million dollars. The two owners decided to part ways. The situation, one person was very attached to the building and wanted to buy the other half of it from his old partner. The thing is, he can’t afford the $500,000.
So this was a real option. Essentially, a third party was brought into the picture and let’s say it is yourself. Since the owner was getting old, what he proposed to do was mortgage half the building as collateral to get the money to buy the other half from the current partner. Afterwards, he would sign the whole ownership of the building to you with the stipulation being that he can use a small space inside until he passes away. Essentially, that means you would now own the entire building for half price in many ways.
As crazy as it sounds, would you take it? While financially it’s kind of like a person giving you $500,000, it is a lot of change that you would have to do considering you are essentially going to be in a large debt. For me it would really come down to my ability on being able to find ways to generate an income using that building to be able to pay for it. Cause having to alter your entire life to get this may have a more negative affect overall. Like saying you can own this very expensive car, but it is no good if you can’t even afford your other essentials in life.
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