Chapter 8: A Risky Decision & A New Path
Leon Carter sat at his desk, staring at the numbers on his screen. This decision would shape his financial future.
Option 1: Buy a Profitable Café
• Cost: $120,000
• Monthly Profit Potential: $8,000
• Safe and stable investment
Option 2: Enter a Commercial Property Auction
• Starting Price: $400,000
• Potential Profit: $500,000+ Flip
• High risk, but a chance for massive rewards
Leon had $125,172 in cash. He could buy the café outright, securing a steady stream of income, or he could take a huge risk and enter the auction, finding a way to come up with the remaining capital.
Weighing the Options
Leon leaned back, rubbing his temples.
Buying the café meant financial security. He'd have steady income, low risk, and full control over the business.
But the auction? The potential rewards were enormous. If he could win the property at a low enough price, he could flip it quickly for a huge return.
However, there were many uncertainties:
• Would the auction price go beyond his reach?
• Could he secure funding in time?
• What if the property didn't sell quickly?
It was a classic dilemma: steady money vs. high-risk, high-reward.
Leon took a deep breath.
He was here to build real wealth, not just play it safe.
Securing a Financial Partner
With his decision made, he needed to secure funding. The auction was in two days, and he was $275,000 short.
Leon called Michael Brooks, a private investor he had met at a networking event. Michael specialized in real estate investments and had deep pockets.
After a few rings, Michael picked up.
"Leon! Didn't expect to hear from you so soon. What's up?"
Leon cut straight to the point.
"I found a commercial property going up for auction. Market value is over a million, starting price is only $400,000. I want in, but I need a financial partner."
Michael chuckled. "Real estate, huh? That's a big jump from stocks. What's your plan?"
"I need $275,000 to enter. If we win, we flip it and split the profits 70-30—your favor, since you're putting in the capital."
Michael was silent for a moment.
"That's a bold move. Do you have experience in real estate?"
"Not much, but I've researched the market. The property is undervalued, and with the right buyer, we could flip it fast."
Michael sighed. "It's a gamble. But I like gambles. Alright, I'm in. But if we lose money, you owe me another deal to make up for it."
Leon grinned. "Deal."
The Auction Begins
Two days later, Leon arrived at the downtown auction house, a grand building filled with investors, developers, and real estate moguls.
The auctioneer's voice boomed through the hall.
"Lot #27, a prime commercial property in Midtown, starting bid: $400,000."
Leon's pulse quickened. This was it.
The first bid came instantly. $400,000.
Leon raised his paddle. $420,000.
Another bidder countered. $440,000.
The price kept climbing. $460,000. $480,000.
Leon took a breath. He had one last chance.
"$500,000!" he called.
Silence.
The auctioneer's hammer hovered.
"Going once… going twice…"
A voice rang out.
"$510,000."
Leon clenched his jaw. He had reached his limit.
"Sold! $510,000 to bidder #48."
Leon sighed. The property slipped through his fingers.
Searching for the Next Opportunity
Instead of going home, Leon headed straight to a private investment forum he had recently joined.
After his successful stock trades, his name had started circulating in small investor circles. Logging in, he browsed the latest discussions:
• "Undervalued real estate deals in the city"
• "Startups looking for funding"
• "Short-term investment flips"
One post caught his attention.
Tech Startup Seeks Angel Investor – $100,000 for 15% Equity
• AI-powered finance assistant software
• Already in beta testing
• Projected market value: $5M+ in 3 years
Leon's eyes narrowed. A finance-focused AI startup? That was right up his alley.
He sent a quick message:
"I'm interested. Let's meet today."
Meeting the Startup Founders
An hour later, he sat in a modern co-working space, across from two young entrepreneurs—Ethan and Sarah.
Ethan leaned forward. "Honestly, we weren't expecting investors this soon. We just put out that post today."
Leon smirked. "I like to move fast. Tell me about your product."
Sarah pulled up a tablet. "We've built an AI-powered finance assistant that helps retail investors optimize their stock and crypto portfolios."
Leon listened intently as they explained how their software analyzed market trends and provided automated risk assessments.
"We already have 2,000 beta users," Ethan added. "But we need capital to scale, refine the AI, and get regulatory approvals."
Leon tapped the table.
"Why haven't you approached venture capital firms?"
Sarah sighed. "We did, but they want too much control. We need someone who believes in the product, not just the numbers."
Leon leaned back, considering.
With the right growth strategy, this startup could easily 5X or even 10X in value.
But was it worth the risk?
Making the Decision
Leon's mind raced through the possibilities.
• A 15% stake in a company that could be worth millions in a few years…
• A high-risk investment, but one with huge potential returns…
• No guaranteed income like the café, but far greater upside…
His heartbeat steadied.
"I'll invest," Leon said, extending his hand. "But I want a say in strategic decisions."
Ethan and Sarah exchanged glances before shaking his hand.
"Welcome aboard."
Leon grinned.
The auction loss wasn't a setback—it was a redirection.
And this time, he was betting on the future.