Week 82: Extending the Bridge

Week commencing 25th July and I have had a few curve balls thrown my way together with some personal challenges. My best friend’s husband is fighting for his life. Unfortunately he has got Covid and is on the ventilator with 50% lung damage. He’s kidneys are also deteriorating. My friend is in a bad way, I only wish I could do something for her. On top of this we also had an unexpected visit from relatives from out of town during the Eid festival. How do we deal with grief and celebration simultaneously? Not the visitors' fault they were trying to give us a surprise and aren't aware that my dearest friend is on the verge of a breakdown with a funeral on the horizon and I have to be on standby. Then to make matters worse we also have severe financial issues and could potentially lose our investment property if we don’t get it sorted. Entrepreneurship is not just about running a business but working an entire ship where both personal and business clashes will take its toll. 

How do we manage it?.. How do we overcome this?.. 

Resilience, tenacity and grit is what it will take

I last told you we had a visit from the valuer which went well albeit there was a lot of paperwork to deal with. I then explained how we were not happy with the Project manager and where we go from here. Anyway our valuation report came back way less than what we had expected (£110,000) even though we had spent £80,000 in repairs. This has put us in a vulnerable place as the bridging company can now only offer us £12,000 for our second draw-down. What the hell am I supposed to do with that? I am already in my overdraft, maxed out two credit cards and have purchased materials on credit from merchants which will have to be paid within the next 30 days. I have fought with the bridging company to review this amount as I explained the 12k will just get zapped and then I will be back to square one again unable to carry on. The problem I'm having with them is that they can only give me a certain amount of money in line with the uplift of the house and this is so frustrating. They said they can give me a bigger draw-down on the final payout once the kitchen and bathroom go in, but what’s the point then as I really need the money now.

I then, in a fit of rage decided to pay off the loan with another bridge as this company was just so rigid and inflexible. My rational; if I get a new loan I could pay off this sh*ty company, secure a cheaper rate than what they’re charging me and get a longer term so it gives me more time. I called around and had managed to secure a couple of offers then;.. boom! The bridge company hit me with an 80k redemption figure. Which is what I will have to pay to clear the loan. They have literally charged me everything possible; admin, TT transfer, exit fee and all kinds of other nasties. This high redemption figure together with a low valuation is really crippling. They have got us exactly where they want. Unable to move forward with another lender and if we stay then we are paying so much more in fees/interest etc. After frantically trying to remove ourselves from this provider we have now decided to extend the bridge with the current lender as they have cornered us and don't have a choice in the matter. However, just to close on a positive we are learning how to work under extreme pressure and alongside these so called banksters and still manage to run a successful property business. We have spoken to high ranking officers in conference calls and learned negotiation/communication skills while remaining calm, even though I wanted to kick their butts. 

It was tough, but growth is always painful

Change is challenging

Criticism hurts 

But success will be wonderful and worth the wait...