Chapter 46

Marshal was very happy, and after lunch asked Dani and me about the dividends. Dani didn't know what to do with them. I told him that I'd just invest it somewhere. It seemed like I didn't have a care for money at all, but in the back of my mind, I was counting billions while messing with thousands. It would be like having a fifteen hundred-dollar house payment coming up at the end of the month and you buying a pack of gum at the gas station. I spent a lot by most standards, but I was responsible for it all.

I asked Marshal if he had any ideas about what he wanted to do with the money. He said, "Britt, your sales methods earned me a lot of extra money and continues to do so. Initially, I invested a lot of that in silver and did well with that plan. Next, I put the money from there in your trucking business and that's growing like crazy. The last thing I did was to take my extra profit from the second year and invested it in Dani's. The initial investment of forty million had just returned me a hundred and twenty-five million over the last two years and I should look for another hundred and fifty million a year from now on."

"Marshal, did you forget the extra five million a year from the franchises?"

"Just like you do, I've started to round up to the closest twenty-five million."

Dani said, "That's an extra ten million a year for me."

"Are you trying to make us feel bad?"

"No, I was just inspired to give it away."

"There are many good charities, but with your money, you could start your own."

"I'll have to think about this."

Marshal and I just smiled at her. We were both very happy for our friend.

Dani went to see her mom and took her to look for a new car. Marshal went back to the office, and I drove Beth back to the office. I sat down in the upper part of the boathouse in her office. She had a nice couch.

She asked, "What did you think the meeting?"

"It went well. I'll be getting my investment back after the first of the year and my first dividend check as well."

"How much is that?"

"I put in ten million, and gave them free rent at all the Stop and Go's for two years. That's a cash and in kind contributions of fifty-eight million. I'll get a check for a hundred and seventy-five million. After that, the checks will be around initially thirty-five million a quarter. It ended up being a good investment. Do you need a raise or anything?"

"I could use a kiss and a hug."

"I'm happy to give you those, all you want. How is John doing?"

"He's doing great. He established a consistent routine of running five miles three times week, and doing push-ups and sit-ups five days a week. He hasn't had a drink in a long time, and our sex life has improved. I think that he's happy, and he knows that I love him. I offered to quit working for you if he needed that, but he said that he trusted us more than most people trusted their spouses. We started a dangerous game, but we have never lied to him. At all times, he knows what's gone on between us."

I told her that I was happy that they were doing well. I handed her a packet and said, "I need to fill out these forms for the trust and have a copy of the trust sent to Charles Schwab to open the account. When the check comes in from Dani's, I want you to send forty-eight million to the Stop and Go CFO. Tell him that it's for the last twenty-four months of rent on four hundred Dani's restaurants. He should start collecting five thousand per store or around two million a month from now on. Send the rest over to fund the new Schwab account."

"That should be around a hundred and seventeen million. I've never seen that kind of money before."

"Neither have I. Maybe we should insure it and require a signature at the other end. What do you think? Is it worth the added expense?"

"I don't think that we can insure it, but we can make them call the bank for it to clear."

"Do what you think is best. That's why you get the big bucks."

"I don't think it's so big anymore."

"Take it out and rub it. It gets bigger."

"I meant my pay, not your cock."

"Double your salary starting the first of the year."

"You're giving me a raise?"

"I'll raise your skirt, I'll raise your bra, and I'll raise your ankles up behind your ears. Is that what you want?"

"I just wanted to say thanks for the raise in salary. The rest we can talk about another time."

"Beth, do we make any money?"

"What do you mean?"

"I mean that as far as I know I'm living off of my savings and that I pay you out of my trust. I know that I turn in receipts for my expenses. Do I pay myself anything for the work I do or is it better from a tax standpoint if I don't?"

"You make about a million dollars a year, or rather your trusts do. Each of your companies pays you a consulting fee. It may cost you more in taxes, but it's a fair price for what you do. In other words, it could be justified in a court of law. If the trucking business and all the others went belly up, the money they paid you would still be yours, and would be protected from law suits."

"I guess that makes sense. I don't see this failing, but its smart insurance to do it this way."

"I get paid out of that money, but they pay expenses on top of the salary, and they aren't taxed since it's a reimbursed business expense."

"You're like my agent, and just take ten percent off the top."

"It used to be five percent."

"You were just a rookie back then."

"I'm coming with you in the morning to meet with Doug and Jill."

"Are we meeting downstairs in the new office or up in my condo? The condo would be more private and more comfortable."

"I'd like to see the new office, but we can walk up to your condo for the meeting. Please try to act nice to Jill tomorrow. She's really nervous about the presentation and has stopped by a couple of times to talk about it."

"I'm always nice. Well, maybe not always, but most of the time."

"Get out of here and we'll see you in the morning."

I walked next door and spent the rest of the afternoon with the grandparents. I like the new house and Grandma showed me some of the projects she was working on. She was also trying to raise money for a new children's wing at the hospital, where she was a volunteer, and read to the patients.

I asked how much they were trying to get, and she said that they needed a hundred million and were close. They had collected seventy so far. We talked some more, and she asked if I wanted to stay for dinner. I said that I would, but needed to make a phone call. She told me to use the phone in the den.

I made the call and spoke to Marshal, "Hey, old man. Do you have any extra cash lying around?"

"Do you have another investment opportunity already?"

"I was actually thinking of something today that would make everything else seem small, but I have to think on it for a while. No, I was calling about some that you may want to give away?"

"How much do you need?"

"You know, I did the math, and when I get my dividend I have to pay the Stop and GO forty-eight million in deferred income from the rent. I also put up ten million of my own, so I have to cover fifty-eight million, and you only had to cover forty."

"Cash is king my friend. You paid two million a month and some of that only a month ago. I paid forty up front. Do you want me to pay you the difference to make us square? Twenty-eight divided by two is fourteen. I can give you fourteen if it will make you happy."

"Perfect. Make it payable to the Arnold Palmer Children's Hospital. With what I plan to give they'll reach their goal."

"How much are you giving?"

"After I pay off the rent to the Stop and GO, I'll have a hundred and seventeen. I was going to give seventeen to the Hospital, and then put the hundred aside for taxes and investing."

"In that case I'll give you the exact difference for the entire twenty-eight. I thought you were getting petty on me."

"I'm going to have Grandma bake you a cake and deliver it to you at your office. She reads to the kids three or four mornings a week. The new facility will be very helpful."

"Tell them both, Merry Christmas for me."

"I will. You have one too, Mr. Scrooge."

I walked in to have dinner and Grandma asked if I had to break a date to have dinner with them.

"No, not that kind of a phone call. I just let a friend of mine know that you wanted some money for the Hospital."

"What did he say?"

"He said that if you baked him a cake and brought it to his office, that he'd make a contribution."

"How much? I'm working hard to raise money and still spend time with the children. I don't have that much extra time."

"You had time to fix me dinner. He said that he and a friend of his could pool some extra cash they had lying around, and they could come up with forty-two total. Is that enough for a cake?"

"Britt, forty-two dollars is a nice gesture. Forty-two thousand would be better."

"Grandma, actually I meant forty-two million. He likes chocolate cake, and his name is Marshal Petersen."

"Oh, my goodness. That's more than we need. We can get more things for the kids. This is great, you're great. I can't eat; I need to make a phone call."

"Can I eat? I'm a growing hungry boy."

"Yes, you and your grandfather eat. Eat! I have to make a call."

Grandpa and I dished up some of the meatloaf and potatoes. He asked, "How much did you give?"

"I had seventeen that was burning a hole in my pocket. Marshal gave twenty-eight. I may kick in some more if they need it."

"Is that from the trucking company?"

"No, I own some restaurants with Marshal and Dani from school. We're getting our first dividends at the end of the month. I gave Marshal some crap about me putting in more than he did and he said he'd give me half of the difference but when I told him to make the check payable to the Hospital he just gave the entire difference. I know he supports numerous charities. He supported the symphony and a few others that I know about."

"Most people give back. Most of them want to support what's dear to them. We support the local food bank, Salvation Army and the Red Cross on top of your grandma's projects. I wish the government would let us keep more so we could decide who receives our help."

"Grandpa, I'm in too good of a mood to listen to this right now. Save it for the golf course where you can smash a ball when you get all riled up. I wish I had more control over how they use my money, or in the case of Washington, wasted."

"OK, we can talk about something else - ... Ahh ... I caught a five-pound bass last week."

"I'm happy for you. I'm glad you moved down here."

When I left, Grandma was still on the phone. I don't think it was the same call, but she was still on the phone, and just waved to me as I left.

I woke early and did my workout. When the meeting started at nine, I had eaten and cleaned up. We met down in the new office, and when I saw it, I realized that it was bigger than I thought it would be. Doug explained that he was just a year away from getting his Real Estate Broker's License and wanted room to expand. Since the deal was for a free space, he took a larger unit. I thought that was smart.

Jill left the office in the capable hands of her assistant, and we went up to sit around our dining room table. I owned the unit with Doug. John and Beth sat on one side, I sat next to Beth on the end, and Doug sat at the other end.

Doug started the meeting and wanted to follow all the rules for a meeting. I cut him off and said, "We're here to discuss the state of the business. Beth will take notes. We'll be casual and just be friends. Unless the accountant found something crazy since the end of last month, the financials should all be good. I read the reports every month."

Doug calmed a bit and said, "We own ninety-four homes right now and have six more to close on next month. We have fourteen paid off and are paying off a new home every eleven weeks. That was sixteen weeks at this time last year. We have a new fully paid warehouse. We have free rent on our office space and own this unit outright."

"We have two accounts at the bank. One is for capital that we use for down payments, and the other is for cash from rentals that we use to pay mortgage payments, taxes, insurance, maintenance, and paying off debt. We pay the minimum on every payment and then take the lump sum and let it collect until we can pay off a house. Since we've bought them at different times, we try to see if we'd be better off to pay off the lowest borrowed house or the house with the highest interest rate. Sometimes we look at what we have and what house has that amount owed or something close."

"That sounds good. How are you and Jill doing? Is the maintenance, real estate, office work and exterminating enough to pay the bills on your new home?"

Jill asked, "What are you asking?"

"It's important to me that you have enough to pay the bills. I want you focused on keeping up the good work that you've started. If you're worrying about paying bills, then you can't focus on what's important. That's the reason for my question. It was about how your personal finances are doing."

Jill started to get upset, but Doug cut her off. He said, "Britt, money is tight. I have a couple of cars for sale, so, I expect that we will end-up all right in a few weeks. We took a big step, and it has left us a little tight in the wallet over the last year."

"Doug, I care about these houses because when they're all paid off and rent is up to seven fifty a month, we'll have cash flow of seventy-five thousand a month. How much do you owe on your house?"

"Two hundred and fifty thousand."

"John, I want to set up a loan for Doug and Jill. They'll get the same rate as they had with the bank. They'll pay interest-only for five years. After that, it will go to interest plus five percent of the principal annually. That's a twenty-five year loan. For the next five years, you can build a nest egg and pay off more houses. If in five years everything is the same then we can give you a larger management fee and pay off the houses slower."

Jill said, "Britt, we don't want charity."

"Jill, I know what you're saying. If people are trying to help, you shouldn't look at it as charity. You're paying me back every penny, plus interest. So, there's no charity involved. I'm just restructuring the deal to make it easier for you with your existing life style and your current place in life."

"I had one idea yesterday that will pay me five million a year. If I wanted to, I could pay off your house. If you asked me to do that, I'd do it whether I wanted to or not. I'm making sure that you both continue to enjoy what you do because you do it well. I care for you both and want you to feel happy. Doug worked on those cars. I could buy the cars, but then he'd drive them and feel guilty. On the other hand, he might not drive them and feel mad. This way he can keep his cars and his house and be happy with his wife and his life."

"What idea did you have that will pay you five million a year?" she asked.

"Dani's restaurants that are in all the truck stops will be franchised out. We're offering out four hundred locations in the next two years. At a thousand a week from food and fees that's fifty thousand for each location and I own twenty-five percent of the business."

"Wow, that's a lot of money."

"It sure is. It's seventy-five thousand a month times six months, which is four hundred and fifty a year for Doug."

"There are twelve months in a year."

"But, he only owns half, so I'll pay him July through December."

"Why not January through June?"

Doug said, "Jill, please stop. He's just messing with you. We'll each take half each month." He turned to me and said, "If you can set up the loan the way you laid it out before, I think it will help us out."

"John, please set up the loan the way we discussed, so we can start the interest accruing at the first of the year when we pay off the loan. They'll start making payments in July when I start paying Doug for his half of the year."

Jill said, "But,"

Doug said, "Thanks, Britt. I think we will end-up fine setting it up that way. I'm still going to sell a couple of cars, though. If you want them you can have them at a discount."

"Beth may want some; I hear she has some money burning a hole in her pocket."

Beth said, "Which ones are you selling? My daughter went on her first date in the Rolls. Maybe I should buy it as a keepsake."

John's head swiveled, and he asked, "What money do you have?"

"I have some. Britt gave me a raise."

Doug said, "Let's get back to the meeting."

Everyone gave him their attention.

"Based on my calculations we should have all the homes paid off in eleven years. What do we want to do over the long-term?"

"It will be 1995, and you'll be making almost a half million a year. What do you want to do?"

"I'll pay off that house first. I've been looking into building an apartment complex. I'd like to find some land, build one, then rent it up, and sell it off. It will take two years and give us enough to pay off half of the houses. If we can do it again, then in four years we'll be debt free. We'll own a hundred houses and rent will still be in the five-fifty or six hundred-dollar range. The houses will be worth five million and growing. The rent will be growing. We can even hire someone to manage the properties."

I said, "What about the legislation that will drive down the cost of real estate, and eliminate tax write-offs for properties when you pay someone else to manage them?"

"What's that?" Jill asked.

"Something I asked a senator about, a couple of weeks ago, after I spoke with Doug. He had several things to say about it."

Doug asked, "When will it become effective?"

"They have to pass it first, but most likely in '85, or by '86."

"I guess we have to keep managing our own properties, but we can still hire people to help us."

"That you can do, and do it without incurring any of the problems of remote management."

"We can also sell it, and take the five million and walk away."

Doug said, "No, we can't do it that way."

"Why not?"

"Because then we wouldn't have the rental income, we wouldn't have equity in a hundred homes, and Britt might want his half and only leave us with two and a half million. I've seen the way you look at shoes, and we'd be broke in just a few years."

"I think I'm going to keep saying, 'yes sir', and let Doug make the decisions for the company."

"Jill, you're a smart girl. Doug just has more experience in real estate. You understand everything we talked about after we explained it. You had just never looked at it from that point of view before. Doug, how much do we need for the apartments, and is there someone who you have in mind to buy them?"

"It should be around four million, or forty thousand a unit. A lot of that will be land costs and engineering. I don't want to build them near here, or they'll bring down the value of our homes. Initially, I was looking out near the University in Ovedo. If we can buy a large enough piece of land, then we can break it into two or three pieces. I'll build one and then after we sell it, I'll build the next one. Depending how well the first one is doing, we probably can sell the second before we could rent its first unit."

"I know a guy that owns apartments. I'll get some advice on it, and at the same time see if he may have some interest in buying them. John, can you get Doug what he needs for the land and the first complex? Make sure it has a nice pool with a big deck, two tennis courts and a workout room and nice laundry area. We want the students outside and having fun. That will sell the units. I also want to stop by and see college girls in bikinis."

Nobody called me a pig, so I was happy. Doug didn't have a contractor's license, but knew people who did. Our management costs would be half of what they normally would be. He'd have his crews do a lot of the trim work and he'd oversee most of the project. Jill would hold down the fort since by the time Doug broke ground on the apartments, we'd have all the houses purchased and remodeled. Everyone seemed happy when the meeting was over. When I got up from the table, I held up my folder with all the charts and numbers, gave Jill a kiss on the cheek, and told her thank you for all of her hard work.

After the meeting, I asked Doug to take me for a ride out to the warehouse, to show me the land he stated that he had some interest in buying. When we arrived there, I looked around and really liked what I saw. It was an old hangar at the executive airport with a large open space below, and an office upstairs. Doug had built a room, but at the moment, it only had my personal stuff. They had stored all the artwork at the insurance company's storage facility, which I was fine with me. We drove out highway 50 to where it crossed over 434. We took a left toward UCF and I saw a large field off to the right. It had a small sign in the ground that looked like it had been there for five years. I asked Doug if he'd ever looked it up at the courthouse.