Don't Make Adjustments with the Bank Manager and Get Stuck

I went to the tiles shop to know the status of my tiles order for our old building reconstruction work.  

While speaking to the tiles shop owner, he said, “Sir, there is half constructed building for sale near your house. Would you be interested in purchasing? If your not, then if anyone is interested, let them know about that building.”

I said, “OK.”

I asked why the half-constructed building was for sale. Why are they not completed?

The tiles shop owner said - House owner made a deal with the “Bank Manager” for Loan sanction.  

The load amount was around “3 crore”; now, the bank manager changed, and the new manager says only 1.5 crores will be released for that building.

Now the owner is only paid a partial amount instead of a total amount. The owner doesn’t have any other sources to finish the work, so they plan to sell the building.

Now the owner is paying EMI for the partially used money from the bank without having any return from the building.  

Imagine paying EMI for the 1.5 crores without a return from the invested source. Isn’t it a burden?  

It is.

I said OK.

I asked what the building size was. He said around 3,000 to 3,500 sq feet.  

Oh. That’s a big building. 

This means it still needs a lot of capital to finish the work. And finding a buyers for such a big site/building is also difficult.  

Until the owner finds a buyer for the building, the owner will bear the holding cost.

Don’t make such a mistake… don’t make adjustments with the bank manager and overleverage from the bank and get stuck with a half-finished project like the above incident.