Chapter 6 - Ryan’s New Project Was Not a Business—It Was a Bet
Two years before the slap, Ryan reinvented himself.
Again.
He partnered with a contractor named Derek Shaw to buy distressed suburban properties, renovate them, then resell.
House flipping.
I hated the term.
Ryan called it:
“value-add residential redevelopment.”
Same thing with better shoes.
The first project worked.
Bought for:
$238,000.
Renovated:
$94,000.
Sold:
$409,000.
After financing and transaction costs, profit:
respectable.
Ryan repaid:
the $15,000 I had put toward initial working capital.
That was my mistake.
Yes.
I invested.
Not gift.
Not rescue.
Investment.
We signed:
a simple promissory note.
Ryan paid.
The second deal did:
better.
Suddenly he looked like:
old Ryan.
Confident.
Successful.
Diane glowed.
“Your father would be so proud.”
Then Ryan wanted:
larger.
A three-property package.
Purchase price:
$1.06 million.
Renovation budget:
$410,000.
Expected resale total:
$1.75 million.
Maybe.
The deal required:
hard-money financing,
personal guarantees,
rapid execution.
I said:
“No.”
Ryan asked:
“You haven’t even seen the numbers.”
“I’ve seen enough.”
“You sit on cash earning five percent.”
“Then I will continue enjoying five percent.”
He became angry.
Then softened.
“What if I only need you to backstop part of the line?”
“No.”
Then Emma entered:
“If this works, I can finally buy a permanent house near her school.”
There it was.
I still said:
“No.”
Good.
Then Diane called.
Then Ryan sent:
revised models.
Then Derek called.
Then I agreed to guarantee:
$75,000
of a small subordinate business line.
Not the main acquisition loan.
Limited.
Written expiration.
My attorney reviewed it.
Still risky.
Why did I do it?
Because I wanted to be:
supportive without funding him directly.
That is often how boundaries fail.
They become sophisticated instead of:
May you like
firm.
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