Merle has abandoned his old philosophy. - Posted by Rick
Posted by Rick on March 03, 2000 at 02:10:07:
Just so as not to mislead anyone who might think that Merle Woolley is still doing 30 year lease-options, according to his latest e-mail letter to the people who purchased his courses, he has abandoned that practice in favor of 3 year lease options.
Here is a quote from Merle: “Originally, we established their monthly payment on a 30-year amortization, added the taxes and insurance, and gave them a rent credit equal to the ?principal? amount each month shown on the amortization schedule. In 3 years on a $60,000 note, they accumulate about $900 toward principal. Now, we credit them with an amount from $50 to $200 per month, depending on how much profit we have in the property. They must, however, pay on or before the due date to get it. Fail to pay on time and they get no rent credit for that month. They get this only for the first 3 years. After 3 years, if they have not paid us off, we will write a new L/O, giving them the credits they have earned and then back to rent credits as shown on the amortization schedule for the next 3 years.”
He has also modified his “private banker” system. It seems that one of his students got into trouble with his state’s SEC. That state contacted Missouri (Merle’s state), and the Missouri SEC sent a letter to Merle about his practices. Now, Merle no longer combines more than one investor’s money with other investors’ money on a single mortgage. He now uses only one investor per property.