| No Exit, No Way! Essay Good thesis writing Essay done for you
This is a discussion of a financial breakdown, as viewed through the prism of an individual story and personal responsibility. Such decision had been taken, the consequences would be of one particular mode, and another pattern of ongoing had been accepted, very different outcomes might be achieved. Whatever rode started, moral principles may be challenged.
Stephen Hodgetts, a dedicated college teacher, got engaged by an old friend of his, Richard Davis, into a real estate market affair.
At the beginning, everything looked appealing – D & H Management, LLC (Limited Liability Company) was established and soon successfully started. In order to raise additional funds, the companions decided to finish off the basements of their rental properties so that those properties could be re-mortgaged and additional funds pulled out. This is how a construction company DHR Construction, was formed. It should be noted that this step made homes more desirable for their tenants to acquire. Now, the companions could sell their homes to themselves at cost making it easier to lower rents for their future tenants.
Unfortunately, while proceeding, one of the developers did not pay his landscapers the properties, owed by Davis and Hodgetts, and they received mechanics liens, which made building new homes on these properties economically unfeasible. The dwellings had been sold, Davis and Hodgetts formed a third firm DHR Patio Homes, which was created to work on the latest construction project
Once the real estate slowdown, that started in 2006, Davis and Hodgetts affair started to experience negative cash flows. The developers properties, which they could not sell were forced into foreclosure and DHR Construction LLC was unincorporated. The friends were forced to offset losses from their construction firms with gains from their rental units, securing loans at the expense of their personal assets.
The crumpling of their local real estate market very soon forced the dissolution of their remaining construction company Patio Homes LLC and also pushed Davis and Hodgetts into personal financial bankruptcy. This is where Hodgetts and Davis realized that they had falsely placed their hopes on a new construction company.
One of their properties was already in foreclosure while the values of the rest of their rental homes were lower than the associated property mortgages. Now Davis proposed the colleagues split, as it might have tax advantages while carrying debt load. Davis soon met a terminal medical condition and subsequently retired, and later terminated.
Hodgetts realizes that he cannot deal with the stress and uncertainty of managing a losing business. That was Davis who generated ideas and brought them into life. Hodgetts is neither experienced nor apt to study market specific features.
After her husband decease, Daviss wife quickly departed the business leaving Hodgetts with all the properties, the business itself, as well as the responsibility of paying off all of the mortgages now in Daviss estate.
Hodgetts makes contacts with a professional real estate firm, which takes over the operations. Now Hodgetts is left to just dealing with cash of the tenants in the properties.
Hodgetts is involved in a very complex assistance for the tenants to become the actual owners of their homes. It takes many efforts with actually no personal gaining. Sometimes he is even forced to pay his own money. Occasionally, Davis wife was in need for affairs, she is giving up mostly. Hodgetts assumed that it would have been easy to sell the remaining properties held by D&H yet nearly a year after his business partners death Hodgetts was still stuck with four properties with no exit strategy and no end in sight.
Hodgetts can easily walk away from these properties, since all of the properties in question were the part of their Chapter 7 bankruptcy settlements. The latter alleviates the debtors obligation to pay back the loan on any debt included in the filing.
Hodgetts really wanted to do the right thing. The right thing that he felt for others was just not the right thing for him since he made not one penny since these businesses inception. Why should he expend any more effort in a fruitless venture guaranteed to yield him no profit? Yet how could he abandon Daviss original vision of helping renters acquire their homes and realize a part of the American dream?
Davis proposed Hodgetts to split, probably knowing this would be a disaster for him; Davis wife is rather cold to Hodgetts poor situation. Should either Davis or Davis wife have been more active in helping Hodgetts to cope with the evident troubles that he meets? Can these negotiations be called friendship?
Which solution to lean to? Which solution would be right to keep putting interests of others above your own and to go on self-sacrifice or to take care of personal concerns only? Which is moral? Which is requirement for survival?