Posted by chris (FL) on September 09, 1999 at 01:12:25:
I remember reading the 1st post , but I must not have checked back for a few days. Snooze/loose.
I hope the thread stays up for another day cause , wouldn’t 'cha know it , my printer just died on me.
Thanks a million , this one should keep me busy & also be the topic of more than one conversation w/some of my REIA friends.
A STATEMENT by Ed Garcia… - Posted by Ed Garcia
Posted by Ed Garcia on September 07, 1999 at 16:56:54:
STATEMENT BY ED GARCIA.
Over the weekend there was a posting that I made about,
(LEASE OPTIONS VS FINANCING.)
I did it for fun, and to get a reaction.
Before I go any further with this post, there’s something I want to tell you.
There truly is no best way.
Each deal should be worked on its own merit, and your circumstances at the
time of the purchase.
What we saw was two different strategies .
Both have merit.
We also were lucky enough to have some professional input from some real
Players.
Two that come to mind are, Rick Vesole an the Honorable Jim Piper.
Let me tell you about Mr. Vesole. He is an attorney. He also has about
180 properties on Lease Option.
Rick and his partner Dan, like to purchase a property, sell it Lease Option,
Borrow their money back out of it, having all of their money back in their
pocket, to do it again. They have their money, control of the property, and
they have a unbelievable cash flow. (Interesting concept)
Jokingly, I’ve called Dan and Rick, a glorified landlord.
There is a lot more to it than I just mentioned. But that’s the concept they
use, and their masterful at it.
Mr. Piper, This man is a wealth of information.
If you ever see he and I in a shoot out. Know one thing. Jim is my friend,
and there is never any disrespect intended.
He like Dan and Rick, has done a ton of Lease Options.
Even though they use the same financial vehicle, their strategies are different.
For all of you who are learning this business, or are already doing lease options
And need some help, I suggest your remember their names.
From the standpoint of Financing, Yes I feel that Financing is an important
vehicle in the world of deal making.
Cash is King is not an Ed Garcia saying, but is a well known fact.
I have always seen cash and financing as one in the same, when doing a deal.
For the new people, you’ve learned something.
For the old pro’s, it gave you a second look, at doing a deal.
Thank You,
Ed Garcia
Re: A STATEMENT by Ed Garcia… - Posted by Rick Vesole
Posted by Rick Vesole on September 07, 1999 at 23:52:18:
Thanks for your kind words Ed. By the way, anyone who has seen me knows that I am definitely not “Rick the Body” - just being facetious. I thought of saying “Rick the Mind” and “Jim the Body” but thought it was better to make fun of myself rather than Piper - besides, Piper might have gotten the wrong idea.
Great thread. Love to hear it debated at the convention (nt) - Posted by HR
Posted by HR on September 07, 1999 at 20:08:06:
nt
Well, I hope you guys are happy now … - Posted by Redline
Posted by Redline on September 07, 1999 at 19:51:30:
… because I sure am. I saved the entire thread below for future reference.
And oh yeah, I can definitely see points for AND against selling outright vs. L/O’s. I guess maybe the overriding point here is —> do some deals so you have this problem to worry about!
Thanks guys (as usual).
RL
Thanks again for the education, Ed & JPiper! (nt) - Posted by Troy M
Posted by Troy M on September 07, 1999 at 19:31:22:
nt
Re: A STATEMENT by Ed Garcia… - Posted by JPiper
Posted by JPiper on September 07, 1999 at 18:43:03:
Ed:
You’re always a gentleman and a professional?.along with being the best financing guy I know and a good friend. For those that don’t know, Ed and I met in Las Vegas a couple of years ago?..and within a few moments of meeting we were in a debate regarding these very issues.
Now here’s a little secret. You can pencil deals out until the cows come home. But there are some things you can’t pencil. Those things tend to be the things that Ed was mentioning as important factors to any deal, the risk factors in a deal.
Here’s an example. In a lease/option there’s a possibility that the tenant/buyer may default, and then fight an eviction. It’s also possible that he could do damage to a property. How do any of us quantify that risk, and then relate it to the potential return, and compare with a cash return? We don’t?.at least I don’t know how. What most of us do is acknowledge the possibility, do the best we can to mitigate against it by good screening and good collection efforts, and get in deals where the potential return is worth the potential risk. These types of decisions are never easy ones. And as Ed has clearly stated, they aren’t risks that the cash seller is exposed to.
But as with most things, there are pluses and minuses to any transaction. The negative to a cash sale is that you get hit with a large tax bill. The positive is that you’re through, and on to the next deal. The negative to a lease/option is that you run some ongoing liability risks?.the positive is that you can position yourself for lower, or deferred taxes. So you take your pick based on your circumstances and your appetite for risk as you perceive it.
Anyway Ed, our debate has been both enjoyable and instructive. Maybe next time YOU should be on the lease/option side?.and I’ll take the cash side!!!
JPiper
Re: A SEMINAR lead by Ed Garcia - Posted by TJ_MI
Posted by TJ_MI on September 07, 1999 at 18:22:20:
Mr. Garcia - Mr. Piper - Mr. Vesole
Thank You. What I was thought was going to be a quiet holiday weekend on the board turned into a phenomenal educational experience.
Although, at first I thought - oh,oh here we go again - (Bill Bronchick vs. Bill Gatten) reading, downloading and printing all 34 pages of text turned into a fascinating exchange of ideas and strategies.
Thank You for the weekend seminar.
Tom Pickens
(P.S.) Someday, when I’ve read your stuff about 50 more times and the light finally goes off and I comprehend everything, I’m going to change the names (to protect the innocent) publish it in book form and become rich and famous on the infomercial circuit.
Thanks (just kidding 8~))
Re: A STATEMENT by Ed Garcia… - Posted by DavidV
Posted by DavidV on September 07, 1999 at 18:12:17:
Thanks Ed, Rick the body, and Jim the mind. The input we get from you guys is invaluable. I for one might not be doing any deals if not for this site and feedback from you guys. All you guys that help out are appreciated more than you probably know.
Thanks,
David
Re: A STATEMENT by Ed Garcia… - Posted by JohnBoy
Posted by JohnBoy on September 07, 1999 at 17:35:18:
Hi Ed,
I for one have truely and thoroughly enjoyed reading that thread. I think you and Piper have done an excellent job with the postings. In fact, I think it was one of the best threads I’ve read so far. That one belongs posted on a page titled, “The Top 10 Threads of CREO”.
Thanks for the educational exercise.
JohnBoy
Re: A STATEMENT by Ed Garcia… - Posted by JPiper
Posted by JPiper on September 08, 1999 at 02:19:34:
Hi Rick:
Just thought I’d let you know that, being somewhat analytical, when I first read that “Rick the Body” and “Jim the Mind” stuff…I wondered to myself “What’s wrong with my mind?”
Then I decided that since I KNOW you have a first-rate mind, I’d just as soon you be “Rick, the Mind” and I’ll be “Jim, the Body”.
What do you think?
JPiper
(Just kidding folks!)
B.G. / B.B. thread? - Posted by chris (FL)
Posted by chris (FL) on September 08, 1999 at 24:51:45:
I remember the Gatten/Piper thread of a while back re: PACTrust. I printed it up & passed it around my REIA . What an education.
Too bad the thread was wiped out after the great cleanse I railed against a few months ago. Looking back @ it , I was wrong to think the editors could keep every post up indefintely.
Anyway , I must have missed the Gatten / Bronchick thread. How long ago was it posted ? I took a quick recon & didn’t find it. Either it’s gone or I failed to pinpoint said thread.
Whatever the case , it’s important to me that I read it. I don’t think the search function is up & running yet . Any help would be greatly appreciated.
Re: B.G. / B.B. thread? - Posted by Andre (NC)
Posted by Andre (NC) on September 08, 1999 at 09:52:05:
Last I checked, it was still on the board near the bottom. It starts under the thread titled “Selling on a Wrap.” Try this: http://www.creonline.com/wwwboard/messages/39017.html