Best Laid Plans

It was perfect. Before we even bought our first duplex, the plan was solid – buy, subdivide, sell off each side separately, pay off subdivision debt with proceeds, and walk away with enough to invest in the next one. And it would all happen in 3-6 months, worst case scenario was a year.

Subdivision flew by without a hitch and on schedule. Both sides were listed for sale. One month passed, two months … no offers. The price was reduced … no offers. We presented it as Rent-To-Own or at a discount for both sides … no offers. One year later we’re holding it as a long term rental. Buy and hold is a great strategy … if that’s the intention, and there's cashflow. One should really have cashflow. The minimal cashflow from this duplex would not pay for debts accumulated by legal fees, subdivision, surveys, and property improvements. Suddenly this business debt became our personal debt, to be paid from our own pocket. Huh... didn’t see that coming.

Things were starting to look bleak. 'Plan A' fell through (selling), 'Plan B' (a home equity line of credit) bombed … we were down to our last option – holding our hand out to banks and hoping for the best. Finally we were able to consolidate these debts for a lower monthly payment, something our cashflow can sustain. Not a goldmine, but holding its own and gaining in value each year.

I once believed ‘planning’ to be synonymous with ‘dictating the future’. Plans equal control, right? Not exactly. My best laid plans are subject to circumstances that will forever remain out of my control – media, market conditions, emergencies, disaster. Of course, my best laid plans are also subject to circumstances that my ignorance and inexperience create.

Planning is vital, but I now view it as a more fluid entity – a guidance system, not a stance. My plans simply represent my best cognitive efforts at a particular moment in time, given the current information I possess. Each of these elements can change in a moment. Plans need to be fluid, quick to adjust to what is best for the new situation. My advice to myself now is, ‘Keep planning, but don’t sacrifice common sense and good judgement for what was, at one time, a sound plan’.