Monday, August 30, 2010
The Worst Real Estate Deal
In pretty much every case, that was all of my equity. More than my equity in many cases.
So real estate investing has been rough on us lately.
Here is a deal worse than any I have every made!!
Jeremiah’s Land Purchase
1 "The following message came to Jeremiah from the Lord in the tenth year of the reign of Zedekiah,[a] king of Judah. This was also the eighteenth year of the reign of King Nebuchadnezzar.[b] 2 Jerusalem was then under siege from the Babylonian army, and Jeremiah was imprisoned in the courtyard of the guard in the royal palace. 3 King Zedekiah had put him there, asking why he kept giving this prophecy: “This is what the Lord says: ‘I am about to hand this city over to the king of Babylon, and he will take it. 4 King Zedekiah will be captured by the Babylonians[c] and taken to meet the king of Babylon face to face. 5 He will take Zedekiah to Babylon, and I will deal with him there,’ says the Lord. ‘If you fight against the Babylonians, you will never succeed.’”
6 At that time the Lord sent me a message. He said, 7 “Your cousin Hanamel son of Shallum will come and say to you, ‘Buy my field at Anathoth. By law you have the right to buy it before it is offered to anyone else.’”
8 Then, just as the Lord had said he would, my cousin Hanamel came and visited me in the prison. He said, “Please buy my field at Anathoth in the land of Benjamin. By law you have the right to buy it before it is offered to anyone else, so buy it for yourself.” Then I knew that the message I had heard was from the Lord.
9 So I bought the field at Anathoth, paying Hanamel seventeen pieces[d] of silver for it. 10 I signed and sealed the deed of purchase before witnesses, weighed out the silver, and paid him. 11 Then I took the sealed deed and an unsealed copy of the deed, which contained the terms and conditions of the purchase, 12 and I handed them to Baruch son of Neriah and grandson of Mahseiah. I did all this in the presence of my cousin Hanamel, the witnesses who had signed the deed, and all the men of Judah who were there in the courtyard of the guardhouse."
So the deal was prompted by God. God obviously had not gone to all the seminars about getting rich quick in real estate!
The terms were "all cash". Seventeen pieces of silver.
Under the laws of the government at that time, Jeremiah had first right of refusal. He had no obligation to buy it, but no one else could buy it until he had decided.
He went ahead and made the purchase, properly executing the "paperwork" and properly recording the purchase with the county.
Jeremiah lost his equity.
How much? 30%
This property was completely worthless once the empire invaded the land and all property rights were cancelled.
Sometimes God has a greater purpose in our life than just making money!!