- First Name
- Howard
- Joined
- Oct 4, 2021
- Threads
- 30
- Messages
- 1,236
- Reaction score
- 1,395
- Location
- Brookhaven Lake O' the Pines, Texas
- Website
- www.hchaney.com
- Vehicle(s)
- 2022 Maverick XL, VB, 2.0 EB
- Engine
- 2.0L EcoBoost
I can understand that. It was scary times, yet it led to a great career.It was scary times. The day before closing I would go to bank and get enough cash to pay all bills so I could be certain I could pay them. ( There was an affidavit in the closing paper work in which I certified that everything had been paid for so I was ready if banker shut me down. They were getting notices occasionally from fed to cut back loans.). I also had a tape and texture sub who would not bill me and at one point I had 4-5 houses I had closed and he called and asked for money on one of them. When I paid him in cash I asked him why he wouldn't bill me and he replied "xyz builder cannot pay and I need the money. Since you always pay when I ask you are my emergency banker".![]()
When money got expensive, we downsized a bit and did not do large jobs during those days. As you know larger General Contractors tended to pay in 45 to 60 days, and the cost of money was just too much.
The reason I finally got out of the contracting business is when my loan officer called to have a meeting. So, when I went in, he explained that the bank was also cutting back their loans, but wanted to give their good paying customers a chance to finance their future work.
Interestingly, since I borrowed and paid back $250,000 in the previous year, they wanted me to take a $250,000 cash loan and use it as collateral for my weekly needs. I didn't see the need as the contracting business was shrinking due to the economy being strapped by 22% consumer interest. I wasn't paying that much, but paying interest on the $250,000 for collateral and also paying interest on the weekly cash flow borrows. It was going to cost me double to finance my jobs and the bank thought they were doing me a favor. Didn't make sense to me.
We had a little in savings and quite a bit of equity in our equipment and our home and I felt like it was a good time to sell out. I had been hounded by a firm that wanted to buy us out and liquidate, so shoot, I did it. I immediately went to work for Bechtel as an Electrical Engineer on a huge PetroChemical Plastics project in Louisiana. That started a good and long career in construction management. I miss that type of work.
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