Posted by Drew on October 24, 2000 at 12:59:10:
Thanks for the reply Merle.
I wouldn’t be to keen about loaning money to a small, new corp without a personal guarantee. Guess most investors would feel the same way.
Don’t think too many people should, although they very well may, tell you to change what you are doing given the level of success you have achieved. There is something to be said for keeping things simple.
Thanks again.
-Drew
Answering Drew’s questions … - Posted by Merle Woolley
Posted by Merle Woolley on October 24, 2000 at 08:52:15:
When I answer your first question, I am sure some of the readers will think we are crazy.
Operating the business in our own name made a huge difference in being able to get investors over the years. “Mr. Jones, if we don’t pay you, you can take just about everything we own. We can’t take the money and leave you with a corporation owing you money … we personally owe the money.”
Several years ago, we put everything into a trust … but no, we do not use a corporation. We did establish an LLC for a couple of properties located in the country where the buyers have livestock. We wanted to protect our other assets in case one of their cows got out and was hit by a car.
All our loans are in the trust with us signing personally.
Just to save some tme, before everyone tells me all the reasons to do otherwise … we are not going to change … for many reasons.
As you said in your last paragraph, we do not use any “tricks” or negotiating strategies to do our business. After 16 years and more than 300 houses (lost count), we enjoy a very good following in our area. People call us to sell their houses, banks call us offering financing, people in trouble call us for help and advice … we do not have to make excuses for anything. Ours is a very real and fair system of helping people.
Thanks for asking the questions. I always enjoy the opportunity to remind myself again of just great this business is.
Have a GREAT day … TODAY!
Merle