During the Grand Opening of Crestwood Estates we sold 2 Units, but faced incredible competition from our direct neighbors to the south of us. Remember, this was one of the large development firms in Kirkland, WA, who received their building permit to construct another 800 units of basically the same townhomes that we were building right next door to us. And to add salt to the worm, it was God, my family, Rick Lentz, my management team and I that defeated the New Growth Management in which allowed these units to be constructed. Now this shark of a competitor lowered their units to be sold at $82,500 – 83,000. When-in-fact, they knew that we had to sale ours at $131,000 – 132,000 in order to recoup our initial investment of $250,000 it took to get that far. They were right, were lower prices to $111,000 and sold another one, but it still was not feasible for General Acceptance Corporation to leave them for saleable units, it had to be 5 units or more. After 12 months of being on the market after the completion of construction and another 6 months after that I had to turn over the development to them exclusively. See, I made a mistake in the negotiations of the construction loan, not to have a Bail-Out Clause of Pay Out for at least $50,000. Those financial dollars would have helped my family and I doing this terrible financial loss. And I accept full responsibilities for the losses and the harm it did to my family through the financial difficulties that we bravely endured for the next 2 years. Moving from apartment building to another, staying at Holiday Inns Family Units with the kitchens included in which was financially and emotionally draining to say the least. In-fact, it got to the point where we ran out of money and I still owe Rick Lentz his initial $5,000 he loan me plus his Architect Fees on the project. My complete management team of lawyers, investors and consultants was owed as well. I was ruined financially and my reputation was in the “dog house”. Not really, and you what? Not one of my investors or management team members say anything to me about their losses, but in fact, gave me encouragement to keep going. They were so classy and Angel Pilato completely turn it out like them all. Angel, wrote a letter telling me to forget about it and she was relieving me from the Financial Lien that I told her to put on my personal residence in the first place. Incredible they all were!!!
However, I did not give up on God helping and me doing whatever it took to get my family and I out the mess that I got us into. My wife at the time did a great job in obtaining housing for us through a great Catholic Charity. Not to even mention how Rick and Rose Comer (Personal Friends of Ours) came through for us as well. I would never ever forgot these hard times, because even though my family and I was going through hell, because of my business mistakes. We stayed connected and together as a close knit family and I could not be more proud of my wife and kid’s at the time. We worked together as a family to support, love and be there for one another. It was beautiful to witness, but I felt shame that I had us in this terrible situation. The Catholic Charity did a great job in hooking us in this large country duplex style home that we shared with another family having our own private entrances and security. It was nice and I was very grateful considering the circumstances. Nonetheless, I was also extremely restless and determine to improve my family situation somehow/someway legally of course.