“Brian, I have a counter-offer from Ted Jones. His taxes are 1.9 million. He offers to pay closing cost if you will assume the taxes for the property. He only walks with 2.2 million this way.” Jennifer told Brian over the phone.

“I can write off the taxes; accept the counter-offer. We want immediate control of the property and his people come under the Kinnetik employee umbrella now. Have him give Mel his deposits from the renters at once. As soon as she has the paperwork ready we can close it.”

“Excellent Brian, we’re stealing this complex. It’s very valuable.”

“This is the perfect example why I don’t get into debt Jennifer. What did he do with that 22 million to begin with?”

“He got overextended with out of state properties that didn’t perform well. He was trying to borrow his way past the recession and out of trouble.”

“Set the closing time for office hours. I’m not available Monday; I have to be in New York most of the day with our jet.”

“Ok Brian, I’ll set it up for next Friday week. That gives everyone time to get ready.”

“How many employees are at the complex?”

“There’re about 60 people on staff, management and maintenance.”

“I want to get off on a good foot with them; raise their salaries 10%.”

“Good idea Brian; I’ll tell them personally. They don’t need to worry about their jobs.”

“You did good Mother Taylor; find more deals like this one; we have the cash.”

“Will do Brian.” Brian hung up the phone grinning. Good rental property was an excellent way to build wealth and a solid investment for cash. His accountant Ted did a happy dance when he learned about it; visions of tax advantages flashing in his head.

********************

Two weeks later….. 

Justin walked into Brian’s office. “What’s going on Brian?”

“I don’t know; Lily asked to meet us here in five minutes.”

“Things are shaping up in Kinnetik Junior now. We’re hiring everyday and filling up the spaces.”

“We haven’t lost any accounts with the delay either and more have called in wanting to hire us.”

“I want to fly a photography team to Las Vegas to shoot the Trump hotel for their ads. It’s a good excuse for us to go and have some fun there as well.”

“We should go during the week when it’s not so busy there with tourists.” Lily walked into the room.

“The reason I asked to see you together was to tell you I’m pregnant.” Justin instantly got a sunshine megawatt smile on his face and Brian looked like a deer caught in the headlights. Justin hugged and kissed Lily on the cheek. Brian composed himself and hugged her too.

“I better start thinking about a name soon.” Justin commented.

“You can call him Justin Jr.” She said.

“It can be hard for a kid living in his father’s shadow. I’ll give him a different name.”

********************

“Read me the story in the toy book Gran Ma Debbie.” Gus asked his favorite grandmother. Debbie found the first page and began to read.

“Full alert at the Knights Empire Castle - the dragon knights have set out with heavy gear to storm the huge castle. Now everyone has to quickly make preparations against the attack: First, the drawbridge is pulled up and stones are stacked up to feed them through the opening above the castle wall and rain them down on the enemy. The villains trying to climb the wall are in for a surprise! The King quickly orders the guards to closely watch the critical spot at the breakthrough in the wall and check the trapdoor in the tower one last time. Now he can calmly retreat to the throne room together with his queen. He can always rely on his courageous knights and the perfectly secured castle.”

Gus carefully looked over the castle and all the pieces that came with it. There was something missing and he wasn’t sure what it was. Then he got an idea.

“Do you know a story about kings, and knights, and a princess?” Gus asked her.

“I have one in mind Gus; let me get on the computer and see if I can find it for us.”

********************

In the limo headed to West Virginia conversation was going on about everybody’s day. Gus was rather quiet which was not normal.

“Gus, how did you like your castle today?” Brian asked his son.

“It’s fun to play with, but I don’t know how to sell it to kids. I can’t think of anything Daddy.”

“That happens to all ad men Gus. Sometimes we hit a wall and it takes time to go around it. Don’t worry about it. We have time to dream up something; there’s no hurry with that toy.”

“Gran Ma Debbie read me a story about King Auther and the Knights of the Round Table and a magician named Merlin. I wanted to hear stories to get an idea how to sell the castle but nothing happened yet.”

“Just forget about it now. Leave it in the back of your mind and doing worry about it. These things happen and maybe something will come to you later.”

“Has this happened to you Jussin?”

“Yes, and usually I get on the floor and kick my feet and have a temper tantrum until I get an idea.” Brian grinned.

“No you don’t! I never see you do that.” Gus reached over and pushed on Justin’s arm.

“Well, it didn’t work and my feet hurt so I stopped doing it.” Justin smiled as he joked with his son. Melanie and Lily looked at each other and smiled enjoying the banter between the boys.

“What I do Gus, is I forget about it and work on something else. The problem is always in the back of my mind; and sometimes the answer just comes to me out of nowhere without trying to think of it.” Justin told him.

“OK”

********************

“Where’s Jerry, Mark?”

“He had to work late at the office today. He said for us to go ahead and eat.”

“When do you film again?”

“Next Monday; I plan to surf in the mean time.”

“You’re really good at it. I still can’t get the hang of it.”

“Give yourself time; I had loads of experience on a skateboard giving me the balance and edge.”

“Let’s see what’s on TV until dinner time.”

“Sounds good.”

“Look; there’s your commercial for Camaro.”

“That was a fun shoot. I loved that jet but Jerry says the next one’s even better.”

********************

 “Do you realize Sunshine, with the staff at Les Amis Apartments, and the new hires for Kinnetik Junior, we’ll have over 600 employees soon?”

“It’s amazing Brian; we’ve grown so fast. If we couldn’t delegate shit this would be impossible. I wonder who we put in charge of the company when both of us aren’t there.”

“Ted’s my first choice followed by Cynthia of course. Either one of them can handle it.”

“Don’t you think Cynthia’s too important to just be your assistant?”

“The PA for the CEO’s a very high position Justin; what do you mean?”

“She should be our chief administrative officer or CAO Brian.”

“I would need to get another person who can handle me like she can.”

“We’re getting so big we need a strong CAO. We have a lot of different departments now. She already performs the duties of that title without the title and pay.”

“I see you point. You want another Cosmo?”

“Sure if you’re having another drink.” Brian went to the bar and made new drinks for them.

“How is your painting for Jerry and Mark coming?”

“Very good since my hand doesn’t give out anymore; I’ll be done in a couple of weeks with it.”

“I’m looking forward to seeing it myself. You don’t get to draw or paint much anymore.”

“I’m ok Brian; I’m enjoying my telescope too. I want to go out tonight for an hour or two. It’s really clear tonight and only 50 degrees with no wind.”

“What do you see with it?”

“Gosh, everything: planets, galaxies, nebulas, star clusters, comets, and the odd satellite will cross my eyepiece now and then. I’ve even seen the Space Station. That telescope can track anything. It has a database with over 100,000 objects I can go to electronically.”

“For $50,000 it should be able to give you head too.”

“That’s what I have you for my dear.”

********************

“Kevin, come to my office.”

“I’ll be right there Brian.” A minute later the human resources director can into Brian’s office.

“I want to raise the salaries for my senior staff. Move you and Ted up to 300K a year.”

“Thank you Brian.”

“Promote Cynthia to CAO for 400K. She’s third in charge of the company if both Justin and I or off site.”

“Got it.”

“Raise Justin’s salary to $750,000 a year, and move me up to a million.”

“I’ll process the paper work right away.”

“While you’re at it; promote Gardner Vance to Director of Kinnetik Junior for $100K a year and bonuses.”

“I’ll have it processed before noon today and sent to accounting.”

“Find me another Cynthia, male or female, to take her place as my PA.”

“I’m on it.”

“That’s all Kevin.” The HR director let the office smiling; these were large raises for everyone. Brian got on the intercom.

“Justin”

“Yes”

“I did it.”

“When do you want to collect me?”

“After lunch is good; have lunch with me downstairs today.”

“Got it; luck with the boss and a private appointment in the CEO restroom follows to pay for the raises for everybody.”

“That’s right.”

“It’s a pleasure working under you Mr. Kinney.”

“My pleasure is working over you Mr. Kinney.”

******************** 

“Kinnetik Real Estate, Jennifer Taylor here.”

“Ms. Taylor, my name is Hans von Heidrich; I own a large complex in Philly. My friend Ted Jones tells me you bought Les Amis Apartments from him and stopped his foreclosure.”

“Yes sir, how may I help you?”

“I own a 44 story luxury loft townhome complex in this city and I’m in a similar situation as Ted was.”

“Tell me your details Hans.”

“The units rent for $1100 to $1600 a month. There are 25 units on a floor and a total of 1100 units. The monthly rental income gross is $1.5 million. The property is 4 years old and worth 8 times gross, a fair market value of $144 million today.”

“How are you in the same situation at Ted Jones?”

“I have a jumbo balloon note due in 6 weeks for $70 million and of course no one will refinance me. The holder of the note wants to take my property.”

“Did Ted tell you the terms of our agreement?”

“Yes he did; I know you might only be interested if you buy a property below wholesale value.”

“So you want us to buy your property, and give you something to walk off with?”

“I hope to gain something for my equity.”

“I have to run this by my business partners Hans. Does your complex have a website?”

“Yes, I have your email address and I’ll send you the link to it. I’ll attach a year of P and L and income records too. I operate it with less than 10% of the income for all cost including taxes.”

“You do realize Hans, we won’t offer you very much for your equity.”

“I’m better off with a bird in hand then to lose it with nothing and the hit on my credit report.”

“Let me have you phone number.” Jennifer took the man’s information. “I just got your email; give me an hour to consult with my partners and I’ll call you back.

“Thank you Ms. Taylor.” Jennifer hung up the phone. This deal exceeded the cash on hand Kinnetik Real Estate has at the moment but Brian said bring me more property.

********************

“I want you boys to consider owning this property outright and I’ll manage it for 10% of the income.” Jennifer said as she showed the information to Brian and Justin for the Villa Caprice Lofts in Philadelphia PA. It’s a beautiful new complex and worth far more than what they have to pay for it. The occupancy is over 97% and steady.

“We could use the write offs Justin, but it will drain our personal cash reserves to buy it.”

“I have an idea; get Ted in here.” Justin said. Soon Ted was in the office and brought up to speed about this possible investment.

“Ted, how can Brian and I own this property and pay cash for it without draining our personal wealth or taking a tax loss by a huge salary draw from the coffers of Kinnetik?”

“That’s easy Justin; Kinnetik will loan you the money as a new first mortgage on the property and you make monthly payments on it. We’d have to make the note at least 3% to be considered a fair investment for Kinnetik Inc. from a tax qualification position.”

“Whatever we pay Kinnetik, we’re just paying ourselves the interest anyway.” Brian said.

“I like it Brian; let’s do it.” Justin said grabbing his lover’s hand and kissing it.

“Offer Hans $75 million; we pay closing and taxes to date so he walks off with 5 million Jennifer.” Brian told her. “Find out what the taxes are on the property now.”

“I already did, next year the bill is 3.75 million Brian.”

“Kinnetik will loan enough money to pay the jumbo note, you a commission, and set up an escrow fund for taxes and insurance for the complex. Monthly the payments will be principal, interest, taxes and insurance. After all bills are paid we get the positive cash flow personally. Make the note 3% for 30 years.”

“Let me get Hans to agree and then I’ll get Mel on it right away.  I don’t need a commission, boys.”

“You’ll take one if I twist your arm mother Taylor.”

“If I take 3%, with taxes and closing cost this is shaping into an $80 million purchase.”

“Not bad for a complex worth almost $145 million.” Brian said grinning. “If full after all cost Justin, this property will pay us a million dollars a month in net cash flow income on top of our salaries at Kinnetik.”

"Sweet!"