Life after the Lottery Ch. 81

"That is another problem. We want 30, but they won't loan that much for that long without a lot of points."

"That is what I was afraid of. How many points?"

"Six."

"Ouch!"

"Yes! That would be another $1,350,000 we don't have."

"How much are you trying to keep the monthly payments down to?"

"Well, $19,000,000 for 30 years would be $64,000. We wanted to try and keep it under $70,000.

"Hold on a minute."

I entered a formula in Excel on my computer.

"Twenty years would be about $90,000. Can you handle that?"

"$70,000 was pushing it until we see how things are going to be."

"Hang on."

I worked in Excel for a minute.

"You can live with $70,000 a month?"

"That is our plan."

"What does the bank want for a 20-year loan?"

"Four points."

"Alright. Call the people that own the land first thing in the morning. Tell them you will bring them a check for $1,000,000 before the end of the day, and that is it. Call the bank in the morning and tell them you will borrow $16,000,000 for 20 years at 1.75% and no points because you are going to give them $7,000,000 down payment. That will keep your monthly down to $70,000."

"I can't write a check for a $1,000,000! Or $7,000,000, James!"

"Samantha can."

"She can!"

"I can!"

"Yes. What time are your classes on Monday and Tuesday?"

"Start at 1:00 and over at 4:00. Tuesday 2:00 and a night lab."

"Tell them you can close on the land Monday before Noon. If they can't do that, then Tuesday before 1:00. If they balk, tell them that you will go to another parcel. Is there another one nearby?"

"About a quarter of a mile down the road, but it is bigger, and it is $1,500,000 also. It is actually a better parcel. I just didn't want to put that much in it."

"That is okay as long as they know there is another one nearby. If the bank balks, tell them you have a commercial lender lined up."

"I do?"

"You will."

"James? Are you sure about this?"

"Sam? Are you sure about this?"

"What?"

"It is your money."

"Sure!"

"You have the money, but Sam will own your ass!"

"That is okay! I hope this works!"

"I bet it will because prime rates may go to a quarter. You might even ask the bank for less than 1.75 percent because you hear they are going to a quarter on prime."

"I don't think they will budge."

"Ask for 1.25 percent. They can only say no!"

"Okay."

"Can you start early next year?"

"Hell, yes! That will save some money if we can."

"Call your lawyer and tell him to set up the paperwork for Samantha to own 25%, and she will be ready to sign."

"James. Thanks for this."

"Thank Samantha."

"Thanks, Sam!"

"No problem...I guess."

"Samantha will own your ass!"

"What about paying you...her back?"

"We'll figure that out."

"Okay."

"Later."

We hung up.

"Uhhh...is this a good idea for me?"

"It is going to be hard to get more than about 3% even on tax-free bonds for the next few years. Helping John and Keith will get you more than 3% in the long run. It will save on taxes this year also."

"But I will own more than 25%?"

"You'll own 30% of the building until they pay you back! In a few years, when they are much bigger and making a lot of money, they can pay you back."

"At more than 3 percent?"

"We'll see!"

"Where will I get $8,000,000?"

"I'll take care of that."

Samantha jumped up and left the study in a hurry.

"I'm going to tell Amy!"

I left my study and went to the den.

"What did Sam go flying up the stairs about?" Dawn asked.

"She is going to own about 35% of John's new building."

"She is?"

"She is."

"Okay. How much?"

"$8,000,000."

"Is she buying into his practice?" My dad asked.

"Yes. She already made that deal for $1,000,000."

"He is going to let her buy-in for that little amount?" Dad asked.

"That was what he let Keith buy-in for. She asked if she could now, and they said yes."

"That is a good deal."

"He wants to build a big place."

"That will be good."

I went up to Sam's bedroom. She was on her computer working and talking 100 miles an hour to Amy.

"Let me explain something to you. Stop for a minute. As part owner of the business, when all of you borrow the money, each of you has to guarantee the loan personally. You are the only one of you three that could guarantee a loan for that much. John and Keith do not have the assets to do that."

"Even though I am giving them $8,000,000?"

"$7,000,000. The other million is for your share and the land."

"What does that mean?"

"A loan that has a good guarantee usually costs less. You will own part of the corporation that John's practice is. A corporation helps protect the owners if the business goes bust. But for doctors, they have to guarantee the loan with their future earnings. That means you will have more of a risk than John and Keith do."

"I don't think the practice would go bust."

"I don't either, but a bank will look at things like how many more years a doctor could practice. How much life insurance do they have in case one of them dies. Things like that to make sure they get their money back."

"We wouldn't do that."

"Why not?"

"We just wouldn't."

"Samantha, if you are going to be a businessperson also, you have to think of things like that. John and Keith would need to have a 5 or 10 million life insurance policy, and that is not cheap. For Keith, that could be 5 or 10 thousand a year. For John, probably twice that. You wouldn't need one. A bank would probably also want a lien on any property you three own. For you, that would be your share of the house in Hawaii and your mom's."

"But I am already loaning them $7,000,000."

"They can approach the bank that way and see if they will loan them $15,000,000, but Sam, you will be part owner, and they will want your name on the loan also."

"Oh..."

"Just something you need to think about. It will probably take two years to build. You won't be practicing for at least another nine years or more. How will you contribute to the cost of the loan? John and Keith contribute with the income they bring into the practice plus profit from their expansion."

"Oh..."

"You will need to discuss this with John and Keith."

"How could I contribute to the practice until then?"

"Well, since you are loaning them a third of the money they need, you shouldn't plan on contributing, but you need to discuss it with them."

"Hmmm."

"That is what happens when you buy into that business. It will be something you will need to negotiate with John and Keith."

"Okay."

"That is a lot, sis," Amy told her.

I went back down to the den.

"What did you need to tell her?" Dawn asked.

"I just needed to give her a reality check about what her owning 25% of the business means."

*****

After lunch, Samantha sat with me.

"Tell me if you think my thoughts are...too much. If I put in $7,000,000 and not charge them any interest...for now, that is pretty generous."

"It is. There is no guarantee they can borrow the rest as cheaply as they think. The banks know that when the economy tanks and starts to recover, rates will go up again. They don't want to make 20-year loans that cheap. That is why John and Keith need to jump on it if the bank is offering the money that cheap. That is why the bank wants five or six points upfront. Points are prepaid interest."

"So, by setting up this loan for us and me putting in $7,000,000, I don't think I should have to cover any of the payment."

"At least not until you are practicing."

"So, would I be asking too much to say that since I helped make the loan possible, that covers my share?"

"How do you feel about asking for that?"

"I think it is fair. But I want you to tell me what you think."

"If you were John or Keith, would you expect you to cover your cost of the loan?"

"Well, I will own 25% of the business."

"And 30% of the building. What you haven't done is figure out what your share of the profits would be each year. Even between now and when you can practice."

"It wouldn't be fair for me to take any of the profits until then."

"Probably not, but technically, you could ask for them as a part owner."

"But I wouldn't."

"You'll need to discuss that with John and Keith."

"But if I don't take any profits out, I shouldn't be on the hook for the loan until I begin practice?"

"Doesn't work that way since you own 25 percent."

"Well...I'm starting to get the big picture. Thanks."

"Here is another way to look at it, Sam. If you loan the $7,000,000 for free. That gets their monthy payment down to about $70,000 a month. Your part of that payment would be 25%, so about $18,000 a month. What would 25% of the total yearly payments be as a percentage of $7,000,000."

"I don't know."

"You may have a photographic memory, but you suck at numbers! Your share would be about $220,000 a year. What would that as a percentage of $7,000,000."

She turned to her computer.

"2 point 8 percent."

"Now think of it this way. You loan them seven. It saves you 225 a year as your share of the loan payments. By that math, you are making 3% interest on your $7,000,000 a year. Does that make sense?"

She thought for a moment.

"Oh! I see! So, I am actually making 3% on my money each year!"

"You are if they don't ask you to help pay all of it back."

"So, that is good!"

''That's good."

"That is why you are letting me do it!"

"If you think 3% is good, sure."

"That's good!"

"That is a good deal. See, I told you that you would make more than 3% in the long run."

"I get it!"

"Now you can explain it to John and Keith if they think you should pay on the loan. If they hesitate, remind them you can get 4% tax-free."

Samantha smiled.

"I get it now!"

"I thought you would."

"How do you do that?"

"What?"

"The math in your head?"

"It is not 100% right. It is called chunking."

"How do you do it?"

"How do you remember everything."

"I don't know."

I smiled at her.

"You two come with me."

As we got to the den, Dawn said, "I am going out to the pool. Anyone want to come with me?" She got up and started taking her clothes off.

"Sure, I'll go with you," my mom said.

Amelia and Ann went with them also.

"I'll be out in a little bit," I told them.

"Heck, I'm going!" Charlie said. My dad laughed at him, but they both went.

"Your dad likes looking at Ann and Amelia. He is a horn dog like you," Amy said.

"If my memory is right, you were the one fucking him all the time the last time he was here."

"He is good fuck...like you."

"Are you coming?" I asked Samantha.

"Sure. Thanks for explaining that to me."

"There are other ways to make money with money. You just have to think through it sometimes."

Amy took her clothes off before we went outside.

"Do I still look sexy?"

"Honey, you always look sexy."

"But I am so fat."

"You are not fat. You are pregnant."

I stood and held her for a minute before taking my clothes off. We headed out to the pool. Amy got in the pool, and I sat next to Ann.

"Are the three of you still having some fun," I asked Ann as I sat with her in the sun.

"Probably more than we should."

"Is Amelia good with it all?"

"She and Charlie are probably too good with it."

"Is that a problem?"

"No. I think Charlie is just happy to be doing it at our age."

"Just make sure you are happy at your age."

"Oh, I am!"

Ann and I talked for a few minutes.

I heard the back door open and looked up, and it was Sam and Olivia.

"Hey, you two!" I said.

"No one answered the door, so we came in thinking you all were out here. We didn't know your family was here," Olivia said.

"No problem. Come on out and join us," I told them as I stood.

"We were out running around and thought we would stop by and check on you all," Sam said as he glanced at Ann.

"Good. Sam and Olivia, this is Ann, Dawn's mom."

"Hello."

"Hi," Ann said a bit nervously.

"Come on, I'll introduce you to everyone."

They followed me to the end of the pool, where Amelia and my mom were lying in the sun.

"And that is my mom, Sue, and Amelia. Amelia is a friend of Dawn's parents."

"Hello."

"Hello."

"Hello."

"Sam is the guy that does all of our electronics. He and Olivia also own part of the men's store. You two get comfortable and join us. Can I get you two something to drink?"

"A couple of beers," Sam said.

Sam followed me into the house to grab some more beers.

"James, Dawn's mom looks just like her."

"And is hot like her."

"I see where Dawn gets her looks from."

"Remember, Ann is 100% Cherokee."

"She is absolutely hot! And she hangs out naked with all of you?"

"I have been doing her mom and her friend for a while."

"No shit!"

"I'll explain all of it to you later."

"Is their friend...close?"

"Amelia has been living with them for a while."

"Damn! I guess it runs in the family! What about your mom? She is really hot, too?"

"Let me just say that if you and Olivia hang around long enough, you can find out a few things."

"Can I do your mom and Dawn's mom?"

"If you can talk them into it. Can my dad do Olivia?"

"If he can talk her into it!"

We grabbed some beers and a bottle of wine and went back outside. Olivia was already naked and in the pool. I saw my dad checking her out. After I handed out the beers and poured some wine, Sam got naked and sat with Ann.

I sat with Dawn as she sunned. Later, we heard Olivia laughing as she sat with my mom and dad. Sam was still sitting with Ann, talking.

"I think Sam wants to do your mom and Amelia," I said.

"I'm sure he does," Dawn replied.

"Where did the girls go?"

"They are in the house with Amelia and your dad."

Dawn stood and straddled my cock as I lay on the recliner. She wanted to fuck, so she slid my cock into her and began wiggling her hips. I was enjoying the sun glistening off Dawn as she slowly rode my cock.

"Sam talked your mom into it," I said as I looked.

Dawn looked over her shoulder at Ann riding Sam.

"Good. Looks like Olivia had some success, too."

Olivia was riding my dad as my mom watched. Dawn slowly worked her pussy as she looked around.

"Oh, fuck yes!" We heard Ann scream. Dawn smiled as she kept going while she had her eyes closed.

"Is your mom enjoying Sam?"

"Ohhh, yes!" She said with a big smile.

"Oh, fuck!" We heard from Ann.

Dawn would smile when Ann would scream. I could feel that Dawn was getting aroused from feeling her mom.

"Oh! Oh! Oh!" Was coming from Olivia as she rode my dad hard.

Mom had straddled his mouth so she could get off while she watched Olivia. Dawn sped up and closed her eyes. I knew she was feeling things. She kept going for a long time as we listened to everyone getting off.

****

I was pouring wine now that everyone had dried off and moved back inside. I sat between Olivia and my mom on the sofa and picked up my beer.

"Yours and Dawn's parents are...fun," Olivia whispered in my ear.

"They are."

"Where did Samantha go?"

"She is working on something."

"What?"

"Buying part of a building."

"What?"

"Dr. John's new building. She is setting up a loan for him."

"And she is passing on sex? That is not like her!" Olivia said and laughed. She was right.

"I'll go check on her."

I left Olivia on the couch and went up to check on Samantha. She was in her bedroom, curled up on the bed, asleep with her laptop next to her. I sat on the edge of the bed.

"Hey..."

She opened her eyes and looked up at me.

"Are you okay?"

"Yes. I was doing some work on my computer and decided to lie down for a bit. I guess I dozed off."

"You have been up here for a while. Sam and Olivia are downstairs, and she was wondering about you."

"I didn't know I slept that long."

"I think you are tired, and it caught up with you, honey."

"I'll come downstairs."

"I think you need the rest. Stay here. This evening, call John and Keith and talk to them. They need to move on this quickly."

"Okay."

She didn't argue with me. I went back downstairs. Olivia was in the kitchen, so I went to her.

"She fell asleep working on her computer."

"She must be tired."

"I think she is, and she may just need to get away from everyone. Why don't you go up and see her? She may want someone to talk to."

"Okay."

Olivia took her glass of wine and walked off while I watched her ass. I went to the den and sat next to Dawn.

"Is Samantha okay?"

"She went up to work on her computer and fell asleep on the bed. I think she is tired. Olivia is going to go and check on her."

"I have been a bit tired too."

"You three worked too hard this week. You all must slow down."

"I'm trying to stay active...but you are right."

"The three of you talk and discuss slowing down for the last month. I think Samantha is stressed about all this money we have been discussing."

"How did that end up?"

"John is going to tell the people that own the parcel they'll give them a million cash tomorrow and tomorrow only. John said he wants 1.2 million, but he has been trying to get it for a long time. If the guy agrees, Samantha will go and write a check for it tomorrow or Tuesday."

"You think they will sell for that?"

"Yes. The bank wants a 25% down payment. John and Keith don't have $5,000,000. The bank also wants five points, so that is another million."

"So what are you going to do?"

"Once Samantha pays for the land, that can be part of the equity and down payment. That would leave $4,000,000 the banks would want plus the five points. They wanted the loan for 30 years to keep the monthly down to around $70,000. The bank is not wanting to loan that much money that cheap for 30 years. Samantha is going to give them $7,000,000 more so they can ask for a 20-year loan and keep the monthly near $70,000. I told him to go to the bank as soon as he could and tell them they would have $8,000,000 in it and to ask for the 20-year loan with no points."

"That would be good for them. Do you think the bank will go for it?"

"I told him if they balked at it to tell them he had another commercial bank he could go to."

"Does he?"

"No, but he could get one with those terms."

"So, we would own about a third of the building?"

"Samantha will until they can start paying us back. And that helps with our taxes this year. I need some help with the taxes on the extra $10,000,000 we put in her trust."

"If that holds the taxes off on $7,000,000, that is a 35% return. If the bank balks, are you going to cover the loan?"

"We'll cover it. That will save us a lot on taxes. I'll charge him 2% like the bank for 20 years. We could get more, but this is an investment for Samantha in the long run."

"We have the money."

"This will all be under Samantha's name."

"She'll like that."

Amelia was in Sam's lap fucking him hard, while Ann had my dad on the floor riding him while she sucked Charlie's cock. Mom and Olivia were on the other sofa. Mom was on her hands and knees, going down on Olivia.

I walked over to the sofa and looked down at Olivia.

"Your mom is good!"

"That is what everyone says."

Olivia smiled at me as she rubbed her tits. I got on my knees behind my mom as Olivia watched closely. I took my hard cock and slid it into my mom.

"Emmmmmmm..."

"Wow," came from Olivia as she watched. "That's hot!"

Olivia watched me and seemed to be getting off more until she was screaming as Mom drove her to another orgasm. I was watching Dawn as she slowly worked her pussy on her dad's cock while she sat in his lap. Sam and Amelia watched them as she worked her pussy. Everyone fucked for a long time before they all had enough.

"Sam? If you and Olivia want to stay, we'll figure out what to do for dinner," Dawn said.