All Forum Posts by: David Dachtera

Really getting off topic, but it's statements like who has to sign personal liability docs for a major corporation that tells me, where ever someone is getting educated, it's not a very good education. You think GE or BoA has someone at IBM sign personally for funding? Really? Ever hear of Bonds? Secured non-recourse loans on inventory or accounts receivables or stock pledges?

For a smaller privately held corporation, yes, it would be a or the major stockholders, emphasis on privately held, as Jason mentioned.

Major public corporations don't have their officers or directors sign sign personally, at least not to the extent of putting their home at risk.

And talking about personal or your company's non-recourse debt suggesting it doesn't have to be disclosed, that goes to the heart of the type of education people are getting, a really bad education.

Now, back to Phillip revealing his return policy. :)

See: http://www.merriam-webster.com/dictionary/sarcasm

0 Votes

Originally posted by @J Scott:

Originally posted by @David Dachtera:

Originally posted by @Richard C.:

Originally posted by @David Dachtera:

@Paul Felix,

It also prevents issues with lenders complaining "you already have too many mortgages outstanding".

It does nothing of the kind.

How do you figure, Richard?

If my entities average one loan per property and I have two or three properties in each entity, but hold none of those properties / loans in my own name nor am I personally liable for them (non-recourse), how can a bank complain that -I- have too many mortgages outstanding? (Hint: -I- have none, and my entities are not me.)

Again, banks won't make conventional loans to a business entity, and banks that will make loans to a business entity (portfolio lenders) won't care how many properties you have.

As anyone who has lots of property loans will tell you, there's no easy way to get around the "too many loans" problem that conventional lenders have...you just don't go conventional after 4 (or 10) loans.

These are the types of things that students of guru programs often won't learn (or will get bad information about), because the people teaching these programs often haven't done enough real deals to actually experience the nuances of the rules and regulations.

Well, ok then. I'll let the people in my group know that the loans their entities are getting from conventional lenders are merely delusions. They'll be happy to know that so they can stop throwing debt service money away on non-existant loans and instead use it to build their acquisition and/or management accounts. Not sure how the (non-existant) lenders will take it, though.

I wonder who has to sign the personal liability documents when a major corporation gets financing to, say, build inventory, prepare a major publicity campaign, etc.

1 Vote

Hi, Corey,

Sounds like you may want to explore "subject-to". That is, taking title to the properties subject to the existing financing. That way, you pay the lender(s) directly without getting new financing.

You'll get a lot of static about "due on sale". However, lenders typically don't call a loan when the payments are consistently current - they sometimes do, but not as a rule and not usually unless they have a reason for it.

One way around "due on sale" is to combine subject-to with a sandwich lease option. In a nutshell, the current owner keeps title instead of deeding the property(-ies) to you - that defeats "due on sale", and gives you a lease-option with the option to sub-lease.

Just some thoughts ...

0 Votes

Originally posted by @Richard C.:

Originally posted by @David Dachtera:

Originally posted by @Richard C.:

Originally posted by @David Dachtera:

@Paul Felix,

It also prevents issues with lenders complaining "you already have too many mortgages outstanding".

It does nothing of the kind.

How do you figure, Richard?

Jason explains above, and Bill below.

Hint - this is another of those times where your hideously expensive Ren-crap-us training has failed you. You should try to get a refund.

If you think $20K is "hideously expensive", what do you call $37K (Fortune Builders)? ... $44K (Yancey)? ...$160K (Rich Dad)?

I'm so glad so many uneducated investors are so much more well informed than people who teach us how they make $1M/yr with strategies they use everyday running their businesses...

0 Votes

I'll agree with the posters who say get qualified legal assistance and pursue your options through the courts, or whatever the eviction process is in the property's area.

You've already done the "be nice" thing. Now, it's time to not be nice and do your duty as a property owner: protect YOUR rights!

0 Votes

Originally posted by @Todd Shampoe:

I just spoke with someone from Creative Investment Concepts they said they would guarantee 75K in profits for giving them 10K to start and they would assign a mentor to me. They suggest that all new investors start with a few buy/sell transactions to get started and that the average profit for one of these is 17.5K. Does anyone have dealings with them?

Demand that they take their payment from the profits of your first deals.

They will complain about being asked to work for free, but just remind them that NO ONE gets a paycheck their first day on a new job.

0 Votes

Hi, Chad,

My first reaction when you said "massive action" came from Tony Robbins: "If you're running east looking for a sunset, you've got a problem." That is, to use a different metaphor, if you're throwing whole kettles of spaghetti at the wall trying to make something stick, you may need to select a more effective strategy.

I wouldn't judge "massive" by volume rather by how much research is done prior to making ANY offers - so you're making the right offers on the right properties.

There's a parallel in direct marketing: an untargeted mailing typically produces less than a 1% response rate. I would expect an untargeted offer campaign to have even less success than that.

Learn how to focus your efforts before you invest any more time / resources. Don't bother blaming the guru or the course - the gurus aren't qualified educators, and the course material has not been vetted by educators.

0 Votes

Hi, Sam,

The REAL question is: do the numbers work?

If they don't, the personal guarantee won't matter: the numbers don't work - period.

If they do, save the personal guarantee as a very last resort, and then try to find some reason to not do the deal. If the deal withstands scrutiny, again - the personal guarantee should not be needed.

Either the building pays its own way or it doesn't.

My $0.02 ...

0 Votes

Hi, Marcus,

Yes - we ALL wish we could just buy a list ... but, of course, it doesn't really work that way.

The BEST list you can get is the one you build through your own networking and contact-making.

You MIGHT be able to pick up a list of properties showing the buyer's contact info and whether or not the property was purchased with financing. Try various list providers and see what you can find.

0 Votes

Originally posted by @Bill Gulley:

Save your guru money, it's coming! :)

Guess what, Bill? It's already here! Been here since January of 2011. It's called, "Renatus".

0 Votes

All Forum Posts by: David Dachtera

David Dachtera has started 94 posts and replied 4493 times.

Post: Phil Grove

Post: Phil Grove

Post: Owner Financing. How does this work?

Post: Phil Grove

Post: requesting advice on how to proceed non paying tenants

Post: Creative investment concepts wants 10k

Post: Soooo... Who has bought Instant Empire Builders? (Rob Swanson)

Post: Should I personally guarantee a seller financed office building?

Post: Looking for a Quality Cash Buyers List for Chicago

Post: Phil Grove