Re: opinion on book wanted - Posted by Kristine
Posted by Kristine on July 08, 2002 at 01:20:39:
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.