Chapter 169 – Talking Business and Property
"It is a long shot, just so you understand that." Jack said.
"Okay." Elizabeth said. "I understand, but it is still part of your dream right?"
"Yes." Jack said. "It is a long shot just because we don't have a vet school close, but I would love for us to expand into rehabbing horses after injury. Ideally we would have a horse hospital, but I don't think that it is going to work with no vet school nearby. I have talked to Uncle Martin in Ithaca and he would be open to something there since they have the vet school. I think if we stick to breeding and training and leave the other part to him with our support, it would work."
"So who will take over his place someday?" Elizabeth asked.
"His sons will both continue to breed, raise, train and compete with draft horses." Jack said. "They think eventually expanding into the other things I talked about might work. It would require obtaining additional land and lots of buildings. Right now, they are keeping their eyes open for land adjacent or close by to them that they can get and just hold on to for now. The plan would be for future expansion. Grandpa John and I have told them we would help them get the land to be held in trust if they want."
"So much to learn." Elizabeth said.
"It will come." Jack said. "I will help you learn. Sitting and talking like this helps. Grandpa John told me that I will start getting all the weekly, monthly and quarterly reports that he gets so I can start to get a grasp on all things Thornton, Inc. As I learn more about it, I will share with you if you want."
"Please." Elizabeth said. "That leads to some more questions. Do we have time?"
"We can start." Jack said. "We might have to table it at some point, but I would rather you ask when you think of them or at least write them down."
"Okay." Elizabeth said. "So my question is how do you or Grandpa John actually make money. You have talked about Thornton, Inc and a few other things, but I am confused."
"Okay." Jack said. "It is complicated, but I will try. Think of Thornton, Inc as a large umbrella, under it there are a lot of things. Grandpa's hedge fund company for one is under there. So is the orchard that he talked about. Dad's law firm technically is under the Thornton, Inc umbrella. Coal Creek is under that umbrella. Each company is its own whole company, incorporated individually. They just happened to be a part of a bigger company."
"So how many companies do you own?" Elizabeth asked. "Or should I say does Grandpa John own?"
"Well." Jack said. "There are companies that we wholly own such as the hedge fund company called Lowien Management, LLC. Then there is the venture capital firm called Emerald Stars."
"What is the difference?" Elizabeth asked.
"Venture capital invests in startups to accelerate their growth and generate high returns for investors." Jack said. "Hedge funds invest in a variety of investments, ranging from stock, bonds, commodities and others using complex structures, leverage and more to boost returns."
"You said that it was a rote memory." Elizabeth said.
"It was in part." Jack said. "I don't mean to sound like a robot, but I have learned so much and can recall it easily. It is stuff I know and mostly understand that is like second nature to me."
"Okay." Elizabeth said. "I was just teasing."
Jack smiled and gave her a quick kiss.
"So you own companies and invest in others." Elizabeth said.
"Basically." Jack said. "There are several dozen companies that we wholly own and several more that we invest in. There are also several properties that are all owned under the Thornton, Inc umbrella. Even things I own, such as the building where our apartments are eventually fall under the Thornton, Inc umbrella. I have three holding companies that have either properties that I rent out or businesses that I have a controlling interest in. It is very complicated and no offense, but even if I tried to explain all the differences, you probably wouldn't understand it all. It is simply easier to say that even the companies that I own are technically controlled by Thornton Inc."
"Okay." Elizabeth said. "I sort of get it. So there are several individual companies all under the Thornton umbrella. So it is like you and Grandpa John are holding the very large umbrella and there are many people standing under it."
"That is one way to look at it." Jack said. "Just remember, we own most of those companies. They may have management and leadership, but they all report to Grandpa John."
"And eventually you." Elizabeth said.
"Yes." Jack said.
"So what are some of the other companies?" Elizabeth said. "You talked about hedge funds and venture capital firms. There is your dad's law firm, Coal Creek and Thornton Thoroughbreds. What else is there?"
"You forgot the orchard in Albany." Jack said. "There are also fisheries in Louisiana and Mississippi. There is a corn plant in Nebraska. There is a meat packing facility in New Jersey. Lets see there logging and cabinet companies in Oregon. There are golf courses in Arizona and Florida. Coal mines in Pennsylvania, West Virginia and Wyoming. Oil and gas fields in Texas and North Dakota. There is a huge plantation on the Florida/Georgia border. They mainly raise cotton, pecans and also produce honey for commercial use. It is sold in stores across the country.
We don't own this, but Grandpa has a controlling interest in a ski resort in Colorado. And that is just off the top of my head. I think I missed a few things. Last time I looked, there were about fifteen companies that we wholly owned and another twelve or thirteen we had controlling interest in. I am also not sure if that number counts Coal Creek or not. I know that the orchard and Dad's law firm are in those numbers. There are also properties we own that we rent out like the apartments. There are also commercial spaces. We own the building so companies and stores rent the space from us."
"Wow." Elizabeth said. "So many different things."
"Yep." Jack said. "Like I said, each business is completely separate. It has its own books and management. There are individual trusts and things set up to run each business. Just as the ultimate owners, we get a large portion of the profits. Then there are the returns on the various investments that we all have. Add into that art and jewelry, well you can see where the money starts to add up."
"So where do you all own properties?" Elizabeth asked.
"We own properties for all the companies that I mentioned." Jack said. "At least the ones that we wholly own. Then there are the properties that we rent out. Most of those are in the city or in Albany. Although, I have been thinking that we might need space here in Saratoga. If I owned a building, I could rent out part of it and then have part of it as a Thornton, Inc office later if needed."
"No." Elizabeth said. "You said something about other properties."
"Oh." Jack said. "You mean like the house in Albany or Miller property."
"Yeah." Elizabeth said.
"Grandpa John has a vacation property in Ocala, Florida." Jack said. "There is actually a manager that lives onsite there, but Grandpa also has a house onsite. It is where all of our Florida horses stay. We have talked about expanding that property. Those horses will be on the Ipads as well once we are up and going with that, so I can see how they are doing as well."
"So that is something like this?" Elizabeth asked.
"Sort of." Jack said. "They don't breed nor do they have the retirement center. It is solely a training/housing facility in Ocala. Then there is the condo overlooking the ocean in Coral Gables, Florida. That is a large four bedroom condo. I love it. You can walk right down onto the beach."
"I would love to go there." Elizabeth said.
"I think that can be arranged at some point." Jack said. "Maybe not this summer."
"Any other properties?" Elizabeth asked.
"There is a small place in Arizona." Jack said. "It is by the golf course that Grandpa owns on the southern edge of Phoenix. I am not sure, I would have to ask Grandpa, but I think he still might have a villa in France. I know I heard stories of Grandma liking to go to France. And before you ask, yes we can go there if you want sometime. And yes, all these properties will eventually be mine."
"Cool." Elizabeth said. "So you will have to travel when you take over for Grandpa John."
"There will be some traveling involved." Jack said. "I won't lie to you. Right now, Grandpa John visits each business once or twice a year, at least the ones that he wholly owns. The key is to hire people that you trust and trust them to do their jobs and if they can't you replace them with people that will."
"So, I would be able to travel with you?" Elizabeth asked.
"I would try to travel when you and/or the kids could travel." Jack said. "Just know that won't always be the case."
"Kids." Elizabeth said with a smile. "Speaking of which, how many do you want?"
"As many as the Lord sees fit to give us." Jack said. "Now, let's talk about something else before we get in trouble."
Elizabeth let out a little giggle.
"Okay." Elizabeth said. "I found some stuff online that I want to order. You said to wait, you would get me a card."
"Come with me." Jack said, getting up.
"What?" Elizabeth said.
"Just come with me." Jack said.
Jack led her to the library and knocked on the open door.
"Sir." Jack said.
John looked up to see Jack and Elizabeth standing there.
"Was there something that you needed?" John asked.
"Yes, Sir." Jack said. "I told Elizabeth that I was going to get her a card to use online."
"Where do you want to order things from?" John asked.
"Mostly Amazon." Elizabeth said. "But there are a few things I saw on another site as well."
"JP." John said. "Do you have your own Visa Amazon card from Chase or was that with your parents?"
"You got me my own last year." Jack said.
"Then give it to Elizabeth to order right now." John said. "And I will get her a card on your account if that is okay."
"Fine." Jack said. "I just wanted to double check before I gave it to her. I was going to order one for her, but since you are the primary account holder, it said I needed your permission."
"No problem." John said. "Elizabeth, we will get you cards as we think about it and it comes up. There are other ones that you can use in the city at restaurants and things. This is a regular Visa card with Amazon rewards. I think the rewards are all on my account, so please don't spend them without checking with me first."
"Of course, Sir." Elizabeth said. "I can use my own money, it was just these were a few things for Opal and maybe for Cody and the other kids for the Fourth."
"Please sit down, both of you." John said.
Jack and Elizabeth both sat down and looked at John.
"Elizabeth." John said. "You and Jack have pledged your lives to each other. That means that you have a right to access the money that comes with being with JP. Yes, there will be documents that will have to be signed later, but at this point if JP is willing to share his wealth, please don't argue."
"Elizabeth." Jack said. "I told you whatever I have is yours as well. I am not going to ask you to sign a prenup agreement, because I feel that is setting couples up for failure. I believe that marriage is forever and I hope you do as well. I mean it when I say what is mine is yours."
"Okay." Elizabeth said. "But you have already given me so much and I don't have anything to give you."
Jack closed his eyes. It wasn't that he was mad, but he was hurt. He took a couple of breaths, then opened his eyes and looked at Elizabeth. She had her head down.
"Elizabeth." Jack said. "Please look at me."
Elizabeth couldn't bring her gaze to meet Jack, so he took his hand, cupped her cheek and lifted it to meet his gaze.
"You have given me something more valuable than money could ever buy." Jack said. "You have and do love me for who I am and not because of what I have or can give you. To me that is more valuable than everything I will ever make. I understand that many people would think I am crazy for not asking you to sign a prenup, but that isn't me. I know that my parents signed one, but to me that showed that their hearts weren't fully invested in the marriage. Maybe that is why they have the problems that they do. I don't know.
What I do know is, I love you and I will always love you. What I have is yours and I hope that you understand that. When I said I want you to be mine forever, I meant it. As a Catholic, I don't believe in divorce, but if that was something you felt our life came to then I would give it to you because all I want is for you to be happy. I know that my family and its wealth is a lot for anyone to wrap their mind around. But like I said, what you have already given me is more valuable to me. I love you and will always love you no matter what."
Jack lifted Elizabeth's hand and kissed the ring that he had placed there.
"Do you understand what I am saying?" Jack asked.
Elizabeth nodded her head.
"I need to hear you say it." Jack said.
"Yes." Elizabeth said. "I understand that you are willingly sharing everything with me. Just give me some time to get used to it. I am not used to people sharing things with me without wanting something in return."
"I will give you all the time that you need." Jack said. "I will say it now and as often as you need to hear it – your love will be all I will ever need from you."
Elizabeth smiled, leaned forward and gave Jack a quick kiss.
"Good." John said. "Now that is settled, is there anything else?"
"No, that should be good." Jack said. "The Visa card will be enough. I doubt that there will be many places that Elizabeth will go that I am not with, so the other cards can wait. Peter, you have a list of my other cards, right?"
"Yes, I do." Peter said. "I have already ordered the Visa Amazon Prime card like yours. It will be here in a few days. It will come with a letter and instructions on how to activate it and set a pin. I have also ordered her the diner card for the city. That might take a little longer, but you are here so it is fine."
"Thank you." Jack said.
Jack stood and pulled Elizabeth up.