About one year back, a person known to me (Name: Mr.Rao) approached me for guidance regarding buying a flat for him. After finding out his requirements and his budget, I suggested to Mr.Rao to go for a new venture that has just started constructing flats. Mr.Rao requested me to accompany him and I obliged. We talked to the promoter. He told that 25% of the total cost of the flat needs to be paid immediately, so that the flat will be earmarked for Mr.Rao. After 6 months 45% has to be paid and balance 30% has to be paid at the time of Registration of the flat on his name. He told the he will handover the flat in 9 months, but it may go up to one year. Mr.Rao agreed and paid 25% through a crossed check. Again after 6 months he asked me to accompany him and paid 45% again through crossed check. Just a month after that Mr.Rao started contacting me everyday and started complaining that the flat is still not ready even after he paid the developer 75% of the total cost. I told Mr.Rao of the developer’s initial talk in which the promoter told that it may take 9 months from the first payment, but likely to extend by another 3 months. Recalling that I told Mr.Rao that he paid the initial amount 7 months back and the completion of the flat may take 2 to 5 months. Mr.Rao started pestering me saying that he wants possession of the flat immediately or he wants his money back. I was very upset with his most unreasonable demand and told Mr.Rao that I will talk to the promoter and see what best I can do..
The next day I went to the promoter and informed him of Mr.Rao’s most unjustified demand. The promoter just smiled and told me that these things are nothing knew to him as he promoted so many ventures. He also told me that one new person is ready to take the place of Mr.Rao and that new person will pay Mr.Rao the 70% of the total cost Mr.Rao paid to the promoter. I got relieved and rang up Mr.Rao to come immediately with the initial agreement papers. I was surprised to see Mr.Rao within 10 minutes. The promoter completed the formality of canceling the agreement he signed with Mr.Rao and signed an agreement with the new person. The new person paid Mr.Rao the 70% of the total cost which Mr.Rao paid to the promoter. Mr.Rao thanked me and left. I thanked both the promoter and the new person and returned home.
A few days back Mr.Rao came to me with a sad face. I asked him as to what is the matter. He told there are two reasons for his sadness. One is that he invested the money he received from the promoter in another venture and that promoter booted with the money of many. The second thing is that the person who took his place in the venture where he got refund, just sold the flat which got completed in 11 months, to three times the value he paid to the promoter. Mr.Rao continued and told, if only he has some patience, he would have received three times his investment, where as his rash thin king has left him with total loss.
I then told Mr.Rao that every investor should have patience to receive the benefits. Then I told him about Compumatrix and the determination with which it’s founder Henry made it a very successful company. The founding members who patiently waited will be receiving benefits in the very near future.