??Lease/Option it back to them? from your original post. The word ?back? made it sound like a sale-leaseback. If you are not suggesting a sale-leaseback then that?s fine, as long as you don?t structure it like a loan. This is a technique taught by many, nothing new, vanilla REI.
To say ??the borrower can?t file bankruptcy?, is also inaccurate. But, again, I guess you really meant something different than the literal meaning of your words.
Since we?ve established your words can?t be taken at face value, I guess there isn?t much else to say.
I?m glad you?re an honorable person, I assumed you were, so am I, not sure why you are so sensitive about that, but whatever.
Crying wolf or a simple mistake? - Posted by John Corey
Posted by John Corey on March 28, 2006 at 07:45:53:
Richard,
While it could be easily shown that Ed’s BK comment was not fully accurate, the concern you raised, the implied message about a vendor teasing people with partial info and the comments about jail time for a transaction concerning lease-backs raised the bar to a standard you failed to meet.
Your information is incorrect as it applies to the situation Ed presented. As no lease-back exists, could exist or was even desired the penalty for a lease-back is at best a distraction to the point about HM vs. Ed’s suggestion.
Lets just agree that you raised a serious issue and the issue was at best a tangent to the discussion. Either you made a mistake, did not know the difference or failed to warn people that what you were sharing was a bit off topic.
While your point is serious and something all people who are considering a lease-back should know it really belongs in a different thread.
Re: Crying wolf or a simple mistake? - Posted by Ed Garcia
Posted by Ed Garcia on March 28, 2006 at 09:28:36:
John,
Thank you for attempting to clarify my post.
As you know when posting sometimes we are in a hurry and from time to time either make a typo or as I did focus on the main subject matter and leave out pertinent details that articulate the point. Heck, I?ve written posts and then realized I left out complete sentences.
When I said, in doing so, you?ll never have to foreclose which is a costly and timely process and the borrower can?t go into bankruptcy.
Of course the borrower can go into bankruptcy, but it would be of no concern. The way I have structured the deal the bankruptcy would have no effect and would not be applicable. That?s what I meant.
Re: Crying wolf or a simple mistake? - Posted by Chris in FL
Posted by Chris in FL on March 29, 2006 at 10:58:13:
Ed,
Great post about buying a property and l/o to the investor. A Robert Allen type “aha” for me, as I dabble in loans to investors, and that might be an excellent tool to meet my purposes with lower risk (no foreclosure). I do l/o too, and have all of the tools, but just never thought of putting the tools together as in your suggestion. Excellent! Obvious Richard intended no harm, but he clearly misunderstood your advise. I frequently get and give advice here, and that happens. You are first class (I also frequently give free advice that others aren’t willing to share, and I don’t even teach!). Just giving back (advice I clearly received along the way). Go CREONLINE, and Go ED GARCIA!
BOTH ROCK!