landtrustwizard
07-18-2006, 02:25 PM
Bill Gatten is the creator of the NARS Equity Holding Trust System that I use for acquiring and managing properties. On another forum, a critic wrote of Bill:
"Is anybody on here actually a member of Bill's group NARS? Is he and his system legit or just another self proclaimed guru making a living on other's ineptitude? If most gurus where really so great and knowledgeable they would probably be employing their tactics to make millions rather then selling bunk programs."
Bill has his own forum and his own business. You can read his articles but he almost never responds on other forums. I just read his response to that poster and feel compelled to share it with others after I pick myself up off the floor from laughing. Here is a true classic:
=========
"Basically, I am, as you suggest a scam artist who knows very little to nothing about anything I teach across the U.S. or write about in my various books on the subject of land trusts. But, candidly, I decided a long time ago that if I was going to be a charlatan and fraud, I would be the best I could be. My real area of interest and expertise is in Mespotamian Folklore and religions of the prediluvian world, as well as in Domestic Mulluskery (i.e., the care, feeding and show-training of pet clams see billgatten.com).
But be all that as it may, the issue alluded to in your question(?) is whether or not a lease option is in fact a DOSC violation or not: not whether a lender would excercise its right to call the loan if they see one. The answer is YES it is a DOSC violation. Period. Would a lender call for that reason? I don't know...I've never known them to do so, but it would depend upon the circumstances I guess (with my transactions they couldn't if they wanted to). But is it a violation none-the-less? Yes (See 12USC1701-j-3 re. any lease for more than 3 years or a lease relating to an option to purchase).
Is a CFD a due-on-sale violation? Yes. Will a lender call its note because of one. Yes...if they want to. Do they ever want to? Yes. Just check with Countrywide Funding, Washington Mutual or Nationwide Funding, just to name three that have tried to equate our program with a CFD and had to be taught that it wasn't one, and that they had no grounds for foreclosure. With a CFD or L/O or LeasePurchase, it's not the relinquishment of title that is at issue, it's the conveyance of an equitable interest in the property (ownership of the lender's security) that p..'es them off, and which generally requires hefty legal expense and judicial foreclosure to ameliorate the situation and and dispossess the unauthorized resident-buyer.
Am I trying to sell somebody something here? Nope. No axes to grind: just answering your question.
And, by the way, if you are indeed a licensed broker, that's carries with it lot of duty and responsiblity to your clients. I would sincerely recommend that you read up on on some of these issues, laws and regulations a bit more in detail before setting yourself up for a possible bad fall. Lease options are considered among the most litigious of all real estate transactions gone awry. I'm told that many of the major brokerages (Coldwell Banker for one) no longer allows L/Os by their agents. And I'm also told (not confirmed) that some of the 'big-timers' (a titled group of which I am not a member) have discontinued their lease option courses for this very reason (Ron Le Grand was one name given to me in this regard)."
Bill Gatten
P.S., Thanks (fellow sky-diver) for down-loading my book for FREE, and for all the warm gratitude and kind words here on the site.
:rockon:
"Is anybody on here actually a member of Bill's group NARS? Is he and his system legit or just another self proclaimed guru making a living on other's ineptitude? If most gurus where really so great and knowledgeable they would probably be employing their tactics to make millions rather then selling bunk programs."
Bill has his own forum and his own business. You can read his articles but he almost never responds on other forums. I just read his response to that poster and feel compelled to share it with others after I pick myself up off the floor from laughing. Here is a true classic:
=========
"Basically, I am, as you suggest a scam artist who knows very little to nothing about anything I teach across the U.S. or write about in my various books on the subject of land trusts. But, candidly, I decided a long time ago that if I was going to be a charlatan and fraud, I would be the best I could be. My real area of interest and expertise is in Mespotamian Folklore and religions of the prediluvian world, as well as in Domestic Mulluskery (i.e., the care, feeding and show-training of pet clams see billgatten.com).
But be all that as it may, the issue alluded to in your question(?) is whether or not a lease option is in fact a DOSC violation or not: not whether a lender would excercise its right to call the loan if they see one. The answer is YES it is a DOSC violation. Period. Would a lender call for that reason? I don't know...I've never known them to do so, but it would depend upon the circumstances I guess (with my transactions they couldn't if they wanted to). But is it a violation none-the-less? Yes (See 12USC1701-j-3 re. any lease for more than 3 years or a lease relating to an option to purchase).
Is a CFD a due-on-sale violation? Yes. Will a lender call its note because of one. Yes...if they want to. Do they ever want to? Yes. Just check with Countrywide Funding, Washington Mutual or Nationwide Funding, just to name three that have tried to equate our program with a CFD and had to be taught that it wasn't one, and that they had no grounds for foreclosure. With a CFD or L/O or LeasePurchase, it's not the relinquishment of title that is at issue, it's the conveyance of an equitable interest in the property (ownership of the lender's security) that p..'es them off, and which generally requires hefty legal expense and judicial foreclosure to ameliorate the situation and and dispossess the unauthorized resident-buyer.
Am I trying to sell somebody something here? Nope. No axes to grind: just answering your question.
And, by the way, if you are indeed a licensed broker, that's carries with it lot of duty and responsiblity to your clients. I would sincerely recommend that you read up on on some of these issues, laws and regulations a bit more in detail before setting yourself up for a possible bad fall. Lease options are considered among the most litigious of all real estate transactions gone awry. I'm told that many of the major brokerages (Coldwell Banker for one) no longer allows L/Os by their agents. And I'm also told (not confirmed) that some of the 'big-timers' (a titled group of which I am not a member) have discontinued their lease option courses for this very reason (Ron Le Grand was one name given to me in this regard)."
Bill Gatten
P.S., Thanks (fellow sky-diver) for down-loading my book for FREE, and for all the warm gratitude and kind words here on the site.
:rockon: