I guess it’s better to learn your lesson early in life, when you have less money at stake…
In 1985, I was nine years old and joined my dad for a 45-minute drive to an A&W restaurant in a neighboring town.
The A&W is still there. In fact, I drove through Wautoma, Wisconsin and saw it this summer.
My dad had a business meeting with a man named Vern Taggatz. While the two men spoke, I wasted time in the restaurant parking lot kicking rocks.
My dad was a “businessman”. He worked for Speed Queen, an appliance company, as a middle manager.
On the side (a side gig!), he and my mom invested in a couple of houses, flipping them. I helped paint. And I stayed out of the way.
At the A&W, my dad was discussing an opportunity to invest in a new apartment complex in Plover, Wisconsin.
I thought it was pretty cool.
Little did I know at the time I was part of something that is now all the rage: a commercial real estate syndication.
It took about an hour. Finally, the meeting was over.
On the drive home, I learned that my dad and Vern did the deal.
Years later, I learned that my dad invested about $20,000.
Even more years later, I learned that Vern defrauded my father.
In 1985, several small investors cut checks to Vern Taggatz who ran off with the money.
Ouch.
My dad was smart. He is still smart.
I try to be like him in many ways. Too much, in fact.
I’m in management (management consulting). I’m entrepreneurial. I love investing.
I bought a high-priced, whole life insurance policy right out of college that I did not need nor could afford.
Double ouch.
The lesson?
When presented with an investment opportunity, really question it.
- How exactly does it work?
- Where is the value?
- What is the downside?
- How well do I know this person?
If the investment opportunity doesn’t feel right, it probably isn’t!
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