Monday, April 20, 2020

Huge Returns

“He knew what the situation was and he chose to be fair.” Stacey Staley

Huge Returns

“They didn’t tell anyone!” Stacey said.

These were close friends she was speaking of.  They had finally called her in desperation.  They were about to lose their home to their mortgage lender.  At the time of their call to Stacey, an expert in all things real estate and relationships, they had perhaps, about one month in which they could work to retain their equity.

Equity is an interesting term.  It is often used to describe the value of something owned, financially.  And, while that is a true definition, there are other ways to look at equity.  In this case, Stacey demonstrated her knowledge, ownership, and use of “relationship-equity.” 

Relationship-equity is investment equity of a different sort.  Yet, it has some of the same characteristics of financial equity, principal of which is that it is earned and accumulated over time.  It is the time-honored process of putting a little bit in, over an extended period.  These small investments of time or money are not taxing.  They’re often viewed as so small that they are often brushed off as insignificant, not important.  But, the real value of such tiny investments is always revealed over time!  Time is the path to the second amazing characteristic of an equity investment.

It’s a hedge.  It allows the person holding the equity to circumvent the effects of some harsh task masters.  In terms of finance, that can mean that it protects one from the ravages of inflation.  In relationship-equity it can protect the equity holder from the ravages of waiting too long to solve an underlying, ignored problem.  Problems that if left unsolved become larger and larger to overcome.  The longer the time period of neglect, the higher the price, right up to the time of crisis.  That’s when the full payment becomes due and the cost is often greater than the equity held at the point.  The equity is fully exhausted!  That’s the point at which Stacey’s friends were teetering.

So, Stacey jumped into action immediately!  Rather than shame or accuse she got to work on her friend’s behalf.  She understands and lives in harmony with the natural laws governing relationship-equity.  And, she was able to reach out to someone with whom she had another deep relationship with.  An investor she knew was looking to place earned financial equity.  One who could purchase the property currently on-the-brink in a timely manner.  Then, she held her breath!

“The investor knew the exact information!” Stacey said.

Knowing the “score,” the investor could have taken advantage of the desperate person.  He could have harvested a great deal, if not all, of the equity enjoyed by the current owner.

“He knew what the full situation and he chose to be fair!” Stacey said, as the memory of it all washed through her heart again.

“He said that he had run the numbers and he could make it work so both he and the person in need would benefit!”  She continued.  “It was a small thing to learn about his character.”

Perhaps.  Yet, all equity is earned by making small investments over time.  That’ what makes it, financial and relationship, huge over time!

Tell everyone!  Make continuous, small investments in every relationship!

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