Apologies - Posted by Bill Gatten
Posted by Bill Gatten on September 01, 2001 at 14:42:15:
Folks,
I’m truly sorry about the tenor of the lengthy thread below concerning the intent of the article re. a friend having gone to prison over issues ultimately involving the DOS Clause. It was posted here out of context, misconstrued and misunderstood by most who commented on it (the original article).
To clarify: here is the truth and my (our) honest take on the situation and the issue of the DOSC.
Violating a lender’s Due-on-Sale Clause WILL NOT, and cannot put you in jail! Ever! Being accused of taking unconscionable advantage of someone can. And when that accusation is levied, it would probably stick whether you had used a PACTrust, a Lease Option, A Wrap, CFD or anything else. Now, no matter what vehicle you used to get the control over the property, if the prosecutor wants some good help in getting you in the slammer, he will call the banks involved in your dealings and point out that such transfers were taken without their authorization and against their wishes and policies. Then, when the decision comes down, it will not even mention due-on-sale clause violations: it will mention deceit, fraud, misrepresentation and misdealing and unjust enrichment at the expense of the plaintiff or the state.
That article (posted by someone else completely out of context) is true. The case number and the friend’s name will remain anonymous…period…forever: neither is germane to the issue at all. Let’s say that, the nameless friend were to have shot somebody, and that’s why he went to jail…nothing to do with real estate all. Let’s say the whole thing was a lie by me, or as told to me by the friend. How does that change anything? Doesn’t the scenario teach you a lesson about what to avoid? Isn’t it worth knowing about? Did you learn anything from reading ?Tom Swyer,? Catcher in the Rye? or ?Pillars of the Earth?? Those weren?t true stories.
The original point (that got lost in all the furor and flurry) is that with the PACTrust, we do notify the banks of the placement of the property into the trust and the fact that all payments will be forthcoming from a named collection and bill paying agency. We tell the bank what it needs to know: the property is being placed into an authorized trust and leased out within the rules of the federal law.
The friend referred to in that jail episode called me this morning and said to me that after giving it some thought, he wasn’t sure (and I agree) that had the same thing occurred and the charges been the same he wouldn’t have still gone to jail. The issue is that had the lenders been informed of the transfer to the land trust (and constructively accepted by putting the info sheet in the file) and had his interest remained anonymous…the charges would probably not have never come about. What he said to me this morning was that the PACTrust might have shielded the issues that brought about the charges, but probably would not have avoided the penalty of being found guilty of the charges.
I’m truly sorry for the insults and the furor that ensued and sorry that some (even the esteemed J. Piper) saw fit to insinuate that I was trying to tell people that if they didn’t buy my products they would go to jail (a bit of a low blow from someone I respect, but that?s ok).
I don’t post here to sell products (it wouldn’t be a very lucrative undertaking I’m afraid. My monthly sales just about equal the cost of my banner ad)). I post here because I thoroughly enjoy doing so. I enjoy giving advice and having answers to otherwise unsolvable or difficult problems that come up in this business, and with which I’ve had experience and know how to handle in ways others may not have thought of. I enjoy being able to answer questions solve problems. And I enjoy the camaraderie and the friendships I’ve developed through this site over the years.
Unlike, Joe Kaiser, Bill Bronchik, Claude Diamond, Ron Legrand, Lonnie Scruggs, Ed Garcia, Terry Vaughan and the many other truly knowledgeable people who observe here…I’m just very naïve, and dumb enough to want to join the party versus just being an observer.
I try desperately to answer every question that pertains to what I believe in with the heading: “A PACTrust Solution,” so as to let everyone know that if they don’t believe in, or want to learn about what we do, they don?t have to bother opening the post.
What I AM ?selling? with these posts of mine and my exposure here, is the concept of there being another world out there that is parallel to “Standard Creative Real Estate Investing” that does the exactly the same things, but in a new and different (and safer, more lucrative) way.
When I’m accused of trying to ?sell something? by my posts here, the accuser are absolutely right. But understand that as much as I truly appreciate your attendance at our workshops, participation in our network and at the teleconfering classes…that’s not my goal or my purpose for spending my time here. When I finally get the time away from documentation, looking at properties, making offers, working on my book, etc. I truly love sitting back, relaxing, and talking to you about what I love: creative real estate investing. The ?product? I?;m trying to sell here is just the concept…not anything esle.
I feel like the guy who invented the first personal computer. ?Go way. I don’t need one…I have a typewriter and an adding machine and that?s the way I?ve did it for years. Them thangs is just too danged complicated, and what I’m doing now works jest fine.?
Honestly folks, you don’t have to buy my computer…just understand that it can do things for you that the old ways just cannot, and that it will do everything your typewriter and adding machine can do?plus a bunch more. That?s all. To learn about it doesn?t mean you ever have to use it?but if learning about it is free for the reading of a few hundreds post, then ?
Respectfully,
Bill Gatten