The Real Estate Deal
One Saturday afternoon you get a call from an old buddy of yours named Steve. (Steve is a real estate agent. Although he is your friend you have some reservations about him. Thru the grapevine you've heard that he has been involved in some shakey deals.) On the phone, Steve goes on to tell you that he has this fantasic real estate opportunity that he would like you to invest in. Despite your initial reservations, you agree to meet Steve at the local coffee shop to discuss this potential investment.Later that day, while enjoying your favorite cup of java, Steve outlines the fantastic opportunity that you have the chance to get in "on the ground floor." Steve goes on to say that he is selling parcels of land under market value with the promise of resale in the near future for a big profit.
Getting your curiousity, Steve grabs a napkin and sketches the dimensions of a prime plot of land that Steve says is currently available. (see diagram below)
Not sure what to do, you say that you'll have to think about it. Steve says that this one will go quickly and that you had better decide soon. He scribbles his cell phone number on the napkin and tells you to give him a call when you decide.
As Steve leaves the coffe shop he yells back, "It's not every day that you get a chance to own 20 miles of lakefront property." "I'll think about it and give you a call later Steve," you reply.
Later that same day you sit at home contemplating the deal... Should you invest or not? Could this be the chance of a lifetime? Things look pretty good and you decide to run the numbers the calculator once more... Remember the numbers Steve gave you are in miles.
What do you tell Steve when you call him back?
(Basically are you "in" or not?)
