Posted by Houserookie on July 08, 2002 at 16:07:05:
If you have two seperate agreements one for the lease, the second for the option to purchase. Where is there a down payment disagreement?
The problem you have described happens because the investor/owner used one lease/option agreement.
Austin
opinion on book wanted - Posted by James Buster
Posted by James Buster on July 07, 2002 at 24:49:36:
The book is “NO DOWN! NO NEW LOAN!: The Cal-Equity PACTrust”, by Bill J. Gatten. Are the ideas in the book sound, or do they have serious flaws? Is there useful information in the book or is it lots of “why” with no “how”?
Re: opinion on book wanted - Posted by Kristine
Posted by Kristine on July 08, 2002 at 01:20:39:
Hi James,
I have read the other responses to you question and would like to add my 2 cents.
I have done the l/o method and find it very risky for the investor and the orig. owner. Not only does it violate the DOS but it also leaves you wide open for your tenant buyer to claim equity in your property. Don’t think that this doesn’t happen because it does!! I have had 2 recent cases where the owner of a SFR did his own lease option, the tenant buyer defaulted and then claimed equity in the home (his orig. down payment) The owner now has to go thru a judicial F/C to get the bum out of the house. And while you are trying to get the bum out, he remains living in the house for the next 6-9 months rent free. Who will be paying the bills then?
With the PacTrust program, which we have completely converted to, there is no chance of this happening. It is a simple eviction. Sure the resident beneficiary may claim equity, but it is all spelled out in the trust docs and the triple net lease that he has to prove it, at his expense!! If he does prove equity, then he is given an unsecured promissory note that is paid off when the house sells or is refinanced.
Bill Gatten has really done his homework on this. Granted that all of this info is not all included in his book, but it is spelled out in great detail in his success pack. Also, if you join his network, it is a lifetime membership and you get to talk with Bill directly. Not like most other “guru’s” where you pay them $5k to $10k for them to mentor you. You never get to talk with them, you get one of their employees. Conti and Finkel come to mind. Plus his mbership is very reasonable in price.
Someone else mentioned that his system is confusing… All I can say is that all of the deals I have put together, the owners were very happy to be in a protective land trust. It’s like a l/o with the added protection of a trust.
I highly reccomend Bill Gatten and his PacTrust system.
Kristine
Re: opinion on book wanted - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 07, 2002 at 21:42:22:
James Buster---------------
I recall a very long discussion about 5 or 6 months ago. Mainly between Gatten and Bronchick. There was a lot of emotion, and words.
You might want to look that up. I haven’t noticed Bill Gatten posting very much lately, so, you might be able to locate the treads with “gatten” in the search function. Or try the words “gatten” and “fraud” in the same search.
Good InvestingRon Starr*
Re: opinion on book wanted - Posted by Julius Levai
Posted by Julius Levai on July 07, 2002 at 14:34:40:
Hello! I maybe bias because Im a member of Bill Gattens Pactrust organization. How I see the book and his system is; honest, less missleading, less greedy, moore sophisticated, yet moore confusing for the every day Joe six-pack. He has a hard time to sell the “idea” on this site, can you image it to try to sell it to the “public” at large? That is where my problem comes in. It`s like the actor-dancer, whose partner has to do it in reverse in high hills… In my case is heavy accent and hard (macho) style, yet I will succeed !!! Julius Levai.
Re: opinion on book wanted - Posted by Bill McKee
Posted by Bill McKee on July 07, 2002 at 12:55:31:
In my opinion, Gatten has developed and refined a truly comprehensive, effective, and creative approach for the investor who wants to deal in single family homes. While the “cost” for the package may be more than that of a “lease option”, the added benefits using his package include more potential cash flow, fewer “gotcha’s”, a much easier way to handle due on sale issue, and pass through of tax benefits to your resident. Plus, seasoning is not an issue. If you’ve been doing real estate awhile, you know this is an issue the “flippers” gloss over…
Anything you can do in creative real estate can be done more effectively with the protective “land trust” wrapper…
Bill M.
Re: opinion on book wanted - Posted by Houserookie
Posted by Houserookie on July 07, 2002 at 08:37:35:
This book isn’t for new investors. It is
simply “another” creative way to control properties. I prefer the land trust course offered by Bronchick.
The ideas are not flawed, they just haven’t been tested in court.
Austin
Re: opinion on book wanted - Posted by phil fernandez
Posted by phil fernandez on July 07, 2002 at 07:43:48:
Bill Gatten is very creative and knows his stuff.