All Forum Posts by: James Hamling

Have you seen the ammo vending machines? 

https://www.cnn.com/2024/07/12/us/vending-machines-ammunitio...

Here is a fundamental flaw to Sub2, that this situation seems to exemplify.

Ever hear of Prospect Theory? 

In short it's this: Seller is facing foreclosure nightmare. In theory they've tried all they can and are stuck on stupid feeling there life is about to be burnt to the ground. 

They are singularly focused to avoid the pain. 

So along comes Mr Sub2, singing how he will waive his hand and make the bad go away.

Seller is singularly focusing on that bad, nothing else, not a year later, just the here n now of making that bad go away. So they jump on it with both hands. 

Now were a year, 2, whatever later. The bad is long gone in the rear view mirror so now, that motivation of making the bad go away, has gone away. 

Now seller has other motives. Like in this case, wanting a new home. 

So now they start doing things to scratch that itch, and it starts unraveling the "perfect" Sub2 deal.

You contact them, say what the heck. But you don't find the same person you did back when. They are just a bit different, not so ecstatic to facilitate all your stuff as once was. Well duh, because that motive to alleviate the bad is gone. 

So now your scrambling, going onto forums trying to figure out how to get it all back to the Nirvana it was. And the "perfect" Sub2 deal ain't looking so "perfect" anymore.

And so you blame the seller, it's there fault, why couldn't they just be nervous Ned for all eternity. 

The fault is you tried to stretch a "solution" that has an expiration date of seller joy, into an eternity. You didn't think about there life, where there motives will shift too, what comes next 1, 2, 5 years down the road. 

The strategy was built on sand. 

Sub2 needs to be viewed like Hard Money. It's a bridge, not the road.

Huh, that's weird Richard because you opened this post that you just "found" this and were asking about it.....

But you seem to respond as if your SELLING this.... 

Hmmmmmm.... 

Hey, here's a weird idea. How about clarity and up front honesty. 

If it's so great, then why the deceptive advertising/marketing tactics? 

Assume an FHA loan to non-occupy and use for rental real estate....

Your a Realtor, right???? 

Comparing this to oil or timber rights is comparing apples to hand grenades. 

For example timber rights, which my family has done for more years than I can remember. When we sell timber rights, it's land we are not actively doing any form of any operation on. 

And those who purchase the timber rights then come in, at there own expense, with there own equipment, there own operations, harvest, site mill, do whatever reclamation and then leave. 

This idea is nothing like that of those selling timber rights. It's like going to those who bought it and saying "hey, here is some cash today but give us 50% of your revenues from all the work your doing". 

That's a loan. 

Yes, by other name, by other design, but it's a loan. 

And it makes no sense. There is so many ways it can go wrong and being a greater negative for parties involved. 

Oil rights, timber rights and the such, the entire point of them is it's NOT intrusive upon the land owners current operation, it takes nothing away from them, it's COMPLIMENTARY, it's in place of them getting the resources out there to do whatever action of extraction it is, and they retain 100% of the land. 

It does not take any revenues from them, it is revenue producing for them. 

In this scheme, it just is nothing the same. Seller has 100% responsibility for revenue production, buyer has no controls of revenue production, it impedes the operations, etc etc.. 

Just because someone throws the words tokenization or crypto onto something means nothing to me, doesn't make it anything special because of what form the currency is. 

And far as SEC is concerned, I have a hard time believing they'd not call something a security just because it was done via blockchain. If that were the case why wouldn't we have blockchain syndications all over. 

A security is a security. 

But hey, stranger things have happened so who knows, maybe they are that dumb, IDK. 

Yeah but the much earlier versions. They've done a lot of evolution to them and I've heard nothing but rave reviews from everyone on em. 

Back in the day I used to lug around a ported .44 Desert Eagle. I was young, lol. But man that thing packed a punch. 

4-10 with rock salt for deterrence. Ya tag something with that, it sent a message, a memorable one. 

I didn't like killing stuff I didn't have to, even coyote or wolf. There just trying to eek out a living too. But needed em to understand not to make that on our cows, chickens, turkeys etc.. 

How about a 4-10 with rock salt rounds.... 

https://www.bullseye-cartridge.com/410-rock-salt-5-pack.html

Yeah I just don't see how it's a "solution" for either side, "buyer" or "seller". 

The argument is a loan has a payment. Well, what is it when have to give away half your cashflow? That's a payment. 

And it moves with what the cashflow is. Well, when goes down that's bad for buyers. So, if I am a buyer, I will calculate that risk into it and will charge MORE for the risk. Making it a high interest loan in effect. 

For "seller" now there is an incentive for lower cash-flow, and a penalty for improvement of a higher cash-flow. 

It's just deeply flawed. 

 Byrna    it has an effective range of 60' 

At best, this is word games. 

With a loan, a person takes on a Debt Obligation. 

Exactly what is to be repaid is known, exactly what the cost for the use of those borrowed monies is known. Your payments are known. 

With this, your saying you get that money and then you LOOSE that % of revenues. And as you say it's an UNKNOWN amount, because it's a %. 

So when your talking to a seller you brag that $ amount of the % can go to $0 so "ha, ha, ha, pulled a fast one on that person who "bought" the cash flow". 

And when talking to a buy you say "ha, ha, ha, look at the deal we got, we got that person to give us all this $ from there cashflow"

The whole thing wreaks to high hell. 

If your LOOSING half your cash flow, how is that any different than having a payment on a loan? 

Other than your payment is NOT fixed, the "charge" for it all is NOT known or set...... 

And again, there is no such thing as ANY of these sellers not having other options because if a person has a cashflow to sell, they CAN get a loan on that cashflow now, today. 

A common term for these is payroll loan, but there is other terms as well. It's a loan based on your revenues. Comes with a known rate, a known term, a known payment. 

I can not picture a single scenario where this is a "solution" for anyone other than the middle man.