I have never had $1MM cash.
I was worth a little bit more than $1MM for some time, before my RE deals crashed big time.
Just like in the Cashflow board game, one deal put me there, although temporarily.
For a few years I was doing OK with RE deals. Basically, SFH that I would buy and sell, just like a few thousand of others during the RE boom.
At some point I realized I was not providing value and went for a different type of deal.
At that time, I worked out a deal that was very interesting.
It was a house sitting on a huge piece of land (well, huge for the area it was... 7.5 acres).
At the time builders were desperate for land.
And I got my hands on such property.
Secured the deal (cost me like $50K to get it under control).
Worked the paperwork to legally split it in 7 1-acre lots, or 14 .5-acre lots.
And then, at the same time, found a buyer.
The property was worth around $350K (it was an ugly house).
I negotiated a deal with the buyers, this building company that had a plan for a small residential community. They agreed to buy all lots for $1.4MM.
Contract was signed.
Financing was being arraigned.
The next morning, after signing the deal, it just hit me.
I had just made $1MM in one deal.
I was shocked.
I smiled all day long. And it was the same for the next couple of weeks.
Suddenly, stress settled in. I was worried cause things were taking longer than expected.
However, in my mind, I felt a lot of excitement. And pride. I had reached a great goal.
The world was mine to have.
For 3 or 4 weeks, I was a paper millionaire.
The dream ended when the financing institution came down crashing. The lending market tightened and then simply disappeared, in a matter of what seemed like two days.
And there I was, with those $50K lost. No buyers in sight. And then all started to go wrong. Renters stopped paying rent and some damaged the properties.
Cash disappeared very quickly.
Lines of credits were closing very fast.
Before I knew it, I was insolvent.
The dream became a nightmare. I had put all my eggs in this basket, and thought I had it under control. Leverage, the same thing that had made me a paper millionaire, took me down very fast.
But how I felt then is another story and not the topic of this thread.
So yeah, it was cool, exciting and scary to think you are worth $1MM.
There were a lot of lessons learned, but I can tell you that:
I simply stop caring about prices for any restaurant
I started thinking a lot about how to replicate this 'success' to keep growing the business (I admit it, I was having a blast doing what I was doing)
I started to think how to help others, especially close family
I was scared... what if I lose everything? who will I be if I am poor? Will people still like me? (and you will find out, most won't )
That is all I can think of for now...