
iMahal Interview Series:
Rahul Roy
August 22, 2002
iMahal:
We have discussed a sequence of business successes for you. But have there
been any failures along the way?
Roy:
Yes. Let me tell you. After my first success with the ink-mixing program I
had all this money. I thought, "What am I doing to do with this money?
Invest in CDs? The stock market?" Well, I decided to invest in real estate.
My mentor Don Travis had investments in real estate, so it seemed a wise
thing to do at the time. I invested in an apartment building, a shopping
mall, and the most idiotic one, a gas station. The gas station was the
interesting investment.
..I decided to invest in real estate..
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It was rather far away in the town of Santa Cruz. I
needed people to run it. My wife said she would never work for me because I
was too demanding. I myself, as the owner, had to pass tests for auto
mechanics, so I had to learn all that stuff. I paid a guy and gave him
equity to run the station. My mistake was that I got so involved with my
main business that I was not watching the gas station carefully enough as I
kept investing more and more money in it. But it turns out that the guy was
stealing from me. The guy went to jail; but that's all that I could do. I
lost a lot of money on that venture. That was a big blow.
The other big blow
was my partnership in the other real estate ventures. My partners quit and I
could not bear all the payments myself. To avoid a bad credit rating, I had
to continue to pay my share, and then go after the partnership. My share was
hefty. So that's where I lost another large amount of money. The end result
was that I had lost all of the money I had made from that first
entrepreneurial success. My wife didn't know. None of my relatives knew.
Nobody needed to know, because I had the confidence to make it back.
This time I thought I am not going to make the same mistake. So then I made
more money from the Imprint venture. Then, guess what? This time, no gas
station, no this or that. I put some money in the bank, some in CDs, and
then a lot of it into the stock market. After all, NASDAQ was going crazy!
So again, I lost a lot. I still have the confidence to make it back. So
these are my ups and downs.