Posted by Ernest Tew on August 14, 2003 at 20:21:42:
Eddie, fresh ideas can be the seeds that grow into huge profits. I must disagree that a person should ‘do a few deals’ before spending money on education. After 43 years of spending money on education, I’m totally convinced that it is the best investment that I’ve ever made.
While you may not like my ‘master lease concept,’ there are many reasons why everyone who has used used it appreciate the benefits. These include passive investors who receive a pre-determined amount of income, growth, and tax shelter–without the ususal disadvantages of management, maintenance, and risks.
For the lessee, it means acquiring a larger property than they could otherwise afford and earning a larger profit than would otherwise be possible. And, if the transaction is set up as suggested, all the gain will be tax-free forever. Avoiding taxes on our profits is like increasing our return by 30% to 65%, all else being equal. In the meantime, almost all the equity that is created is protected in the event of a lawsuit.
Those who understand the program find that they can sell the property at any time–or hold for the long term. In short, a long-term net lease with an option to buy involves the same rights and responsibilities as having a deed to the property–with one exception: the lessee can’t take depreciation deductions. However, as an offset, all the lease payments are tax-deductible. If the terms call for the lessee to make the mortgage payments, then both principal and interest are deductible.
In short, the creative use of a net lease with an option to buy is our most powerful real estate tool. With the advent of the Roth IRA, it is even better.
Investor’s Toolkit; what are your thoughts? - Posted by Chuck (CA)
Posted by Chuck (CA) on August 07, 2003 at 12:29:22:
I need some help from all you seasoned pros. Has anyone purchased and used Ernest Tew’s “Investors Toolkit?” Seems like a good deal at $349.00 and worth the investment.
Re: Investor’s Toolkit; what are your thoughts? - Posted by Skip (CA)
Posted by Skip (CA) on August 08, 2003 at 13:33:33:
Chuck:
The Investor’s Tool Kit has so much information in it it’s almost mind boggeling (sp). It’s a virtual encyclopedia of investment information, and I haven’t gotten all the way through it yet. I’m basically a buy and hold investor and bought the “Tool Kit” to look at other avenues, especially MHP’s. I haven’t gotten to the CD information yet, but when my son and I were reviewing it with Ernest it looked awesome. I too think it’s underpriced. Hope that helps! My best to you.
Re: Investor’s Toolkit; what are your thoughts? - Posted by Eddie-MI
Posted by Eddie-MI on August 08, 2003 at 11:14:03:
I have Ernest’s CD. Overall, I liked it- but I wouldn’t spend the money unless you have done a few deals and want fresh ideas. Its easy to throw around 300 dollars on every course that comes out.
I would go to his website and read the free article “Financing- The Key to Big Profits”. His story is kind of similiar to mine- I have closed on a 32 space MH Park with 20,000 down and about to close on a 50 space MH Park with 25,000 down. You can find these type of deals- but it takes a lot of time and finding the right situation. There are more sellers out there who will sell for 5% down than you think.
One thing I don’t like is his master lease concept. He suggests having a silent partner that puts up most of the cash for the purchase and fixup money- and then ‘master lease’ the property. My belief is the less people involved the better. Getting a silent partner is unrealistic for the vast majority in the real world. I would suggest owner financing direct from the owner and thats it.
This master lease concept makes it easy for you to sell out instead of holding for a long period of time. If you turnaround a property and triple its value- why sell?
Re: Investor’s Toolkit; what are your thoughts? - Posted by SteveC_GA
Posted by SteveC_GA on August 07, 2003 at 14:03:33:
In my opinion “The Investor’s Toolkit” is severely underpriced. Most authors would break up the information on the CD into several courses, but Ernest refuses to follow that routine. He insists on conveying his 40+ years of real estate experience into one product.
I have had the opportunity to work with Ernest on several projects the past 3 years and all have been or are currently successful and prospering. I have had a copy of his Toolkit even before it was offered to the public and I still reference it to this day. It seems that I pick up a new idea or strategy every time I read or re-read the information.
The ideas presented in “The Investor’s Toolkit” has helped me make over 200K the past three years in just a few deals, I would say it’s well worth the money.
I don’t have his toolkit (yet) but I have his other materials and they are an excellent value! Good, useful info for a good price. Then add the fact that Ernest is easily accessible by phone or on this board.
Don’t think you can go wrong.
All the best, Lyal