December 15th and Larry is a happy camper. He has completed the Triangle Offense. LaTasha was a Master at selling jewelry. Her spot was a coffee shop with high traffic volume. The shop has poetry contest on Saturday afternoons, and the conga drums on Sundays. LaTasha knew the owner Brenda really well. Her husband Ricky was like Larry, a very hard worker. She offered Brenda $1,000 a month for the 2 months to set up a small booth at one of her tables in the coffee shop. Brenda was happy to earn an extra $2,000 before Christmas. Larry was happy with this choice. He wouldn’t have to worry about LaTasha and Marvin’s safety when he wasn’t there.
Marvin was also a champion, he was his mother’s able assistant the whole time. Larry promised him $500 if he would work with his mother in business. Marvin felt he would be rich if he did a good job. Marvin is an intuitive kid and he watches every transaction she makes. He points out something to her if he doesn’t feel right about it. He goes with Larry to pass out flyers on Tuesdays advertising La La’s Jewelry selling at Brenda’s coffee house on Fri, Sat, and Sun. LaTasha knew her business extremely well. With Larry’s plan she was able to buy clearance items at a cost where she could upcharge them at 105%, not the plans 70%. She didn’t turnover their inventory 3 times. She turned them over almost 2 times. With the higher upcharge she was able to produce a $13,000 profit in 45 days.
Larry beat his target to get their business off the ground and to complete his real estate project before the first of the year. Let’s look at his revised financial position.
South Bronx house value $485,000
New mortgage 255,000
Equity in House 230,000
Minus down payment 75,000
Addition to Net Worth $155,000
Investment in La La’s Jewelry
Reconfigure Showroom 8,000
Payment to LaTasha 5,000
Inventory 10,000
Total Investment so far $(23,000)
Net income from Christmas Sale $13,000
Inventory left from sale 3,750
Net increase in Capital 16,750
Increase to Net Worth 3 months $148,750
Although there is net loss of $6,250 so far in La La’s Jewelry on his investment, it was due to upfront cost and not from loss on operations. He is so happy because he can see his employment coming to an end. He can produce a viable income with profits every month. He has been a Custodian for 19 years. He will put in one more year and retire with a partial pension. LaTasha has been a blessing in his life and he wants her in his life for good. He added $150K to his Net Worth in 3 months and knows he can purchase more single family homes to add to his net worth, but he is angling for big fish. He will use the small home purchases for leverage to exchange for larger properties like his 3 family townhome. The greatest achievement to date is his partnership with LaTasha, they will build a comfortable income and live a prosperous lifestyle with great rewards.