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A simple question – complex answer?

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing A simple question – complex answer?

This topic contains 15 replies, has 0 voices, and was last updated by Avatar of peter@amakya peter@amakya 10 years, 5 months ago.

Viewing 15 posts - 1 through 15 (of 17 total)
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  • #5653
    Avatar of peter@amakya
    peter@amakya
    Member

    For the brains trust, a question. A year ago a RB wanted to buy the house out of the trust and the Appraisal was $115,000, but he was not able to find funding due to his own lack of work on his credit.

    Now a year later, he is able to find funding and the Appraisal is $105,000. How does one recover this loss? BTW the he (the RB) holds 10% of the trust. The documents we have give no direct guidance and I would not want the trust to continue for a few more years, the classic solution, after all it has been running for more than 5 so far!

    #29455
    Avatar of bill_gatten
    bill_gatten
    Participant

    The documents who has?

    Who prepared these documents? Who is the trustee?

    Our document cover these issues without any problem….

    #29456
    Avatar of peter@amakya
    peter@amakya
    Member

    The documents are the trade marked, patent pending Equity Holding Trust documents and the Trustee is Equity Holding Corp a California not for profit Corporation. Bill, what else do you expect out of San Antonio?

    #29457
    Avatar of homesavers
    NULL
    Member

    @peter@amakya wrote:

    The documents are the trade marked, patent pending Equity Holding Trust documents and the Trustee is Equity Holding Corp a California not for profit Corporation. Bill, what else do you expect out of San Antonio?

    You can trade mark and you can copyright but as far as I know you cannot patent documents. So I am just wondering why some of the senior people keep referring to patent pending on the NARS Equity Holding Trust documents. You cannot patent them and if you could there would be a patent number filed with the USPTO. There is no such number.

    #29458
    Avatar of bill_gatten
    bill_gatten
    Participant

    My Dear Donny,

    You are either in error or I have spent $20,000 plus for nothing.

    As you suggest, document are not patentable per se, but intellectual documentation systems as inventions indeed are fully patenable. There is indeed a patent pending on the Equity Holding Trust(tm) (r) System and we are expecting approval within days or weeks. Recheck your information.

    All of our documentation is fully copyrighted and trademarked, and the patents are officially pending re. the PACTrust, the NEHTrust and the EHtrust (general) systems. The requisite legal warnings re. infringement are out to approximately 35 possible violators of our proprietary rights (each of whom will be subject to lawsuit when/if our long time pending application is approved as we assume it will be)..

    Attorney Docket No 2388-001-.PROV, Confirming No. 5431 Thorpen, North, Thorp and Western, SLC, Ut.
    Application No. 60/936,770
    Filing Date June 22, 2007
    International US60/936,770 37CFR 5, 11 & 5.15; 35USC184
    All docket entries docketed and confirmed 12-21-07, 3-21-08, 6-21-08,

    #29459
    Avatar of homesavers
    NULL
    Member

    I was wrong. I have been looking for it for a long time now and it is finally public. Thanks for the information, Mr. Bill. This is huge I hope others on this board get just how significant this is.

    #29460
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    I was wrong. I have been looking for it for a long time now and it is finally public. Thanks for the information, Mr. Bill. This is huge I hope others on this board get just how significant this is.

    Ok so answer me this… what’s going to be different once the patent is approved? What I mean is, is an approved patent of the NARS Process of Documentation going to make you any more successful? What are you going to be able to do tomorrow that you can’t already do today?

    Yes I agree, this is huge, but a patent number is not going to make you any more successful or make seller’s accept your offers. You still need to make offers and close transactions with or without “a patent”.

    There are thousands of people who are successful in the CRE world, and none of them use a patented process of documentation. These successful people all have characteristic in common. They get up everyday and go to work regardless of what process of documentation they use, patented or not.

    The point I’m making here is, what difference is it going to make to you? Again, what do you think is going to be different tomorrow than today? NOTHING, if you keep doing what you’re doing today.

    #29461
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    Ok so answer me this… what’s going to be different once the patent is approved? What I mean is, is an approved patent of the NARS Process of Documentation going to make you any more successful? What are you going to be able to do tomorrow that you can’t already do today?

    Well it is a personal thing. To me it is Confidence. Even if just a change in my perception it will be huge to me. It is hard to sell something if you do not have confidence. Yes I lack it in some points especially in conveying the EHT to people who have never heard of such a thing.

    #29462
    Avatar of peter@amakya
    peter@amakya
    Member

    Bump – back to the orginal question

    #29463
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @peter@amakya wrote:

    A year ago a RB wanted to buy the house out of the trust and the Appraisal was $115,000. Now a year later, he is able to find funding and the Appraisal is $105,000. How does one recover this loss?

    I thought I’d let this one sit awhile and see how knowledgeable and or creative our members really are. This question should be a “no brainer”.

    What Loss? What was/is the MAV? There is NO LOSS until something (stocks, real estate, etc.) or unless something is SOLD and only if you (the Beneficiaries) wish to accept “a loss”.

    So what, the value a year ago was $115k and now is $105k. Where is the LOSS? The RB has the right to purchase at the FMV “MINUS” any interest that is due them by the trust. That would include any non-recurring closing costs (beginning contributions) and any NET Proceeds.

    If the current FMV (by appraisal) isn’t enough to pay all the encumbrances and all the beneficiary’s their respective contributions and profits, then someone, may everyone, is going to have to take less then is owed them, just like any other sale where a Seller can’t get what they are asking. It may require that some even has to come in with cash to close.

    Another option is one you apparently aren’t willing to let happen and that is to extend the trust, not the lease. The lease must remain on a day-to-day hold over but you can choose to extend the trust term until such time as the market recovers to a point that numbers will work for everyone.

    The other option is to just walk away and give the property back to the Seller.

    @peter@amakya wrote:

    The documents we have give no direct guidance and I would not want the trust to continue for a few more years, the classic solution, after all it has been running for more than 5 so far!

    The “documents” are very specific and give exact direction and options. In this case and any other, this is no different than any other sale. Either you qualify or you don’t, either you have the funds or you don’t and either the selling parties wish to discount or contribute or they don’t.

    #29464
    Avatar of areyes
    areyes
    Member

    SB or IB or RB takes less distribution to make it work at trust termination.

    File a UCC1 and a promissory note to recover or get something in exchange like guys, jewelry, car?

    #29465
    Avatar of areyes
    areyes
    Member

    i didnt mean guys, i meant guns. anything of personal property that can be liquidated into cash.

    #29466
    Avatar of homesavers
    NULL
    Member

    @areyes wrote:

    i didnt mean guys, i meant guns. anything of personal property that can be liquidated into cash.

    Hey there are some women out there that would like to sell their “guys” if they could. :D

    #29467
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    What Loss? What was/is the MAV? There is NO LOSS until something (stocks, real estate, etc.) or unless something is SOLD and only if you (the Beneficiaries) wish to accept “a loss”…

    You touched on a subject that I have been trying to figure out for a while now. It has to do with time and money. In the example Peter gave the Trust beneficiaries will lose 10K based off the MAV. The MAV is just a “pie in the sky” number anyway right?

    #29468
    Avatar of peter@amakya
    peter@amakya
    Member

    Clearly, this was not annunciate was well as it could have been.

    Due to the failure of the RB to perform according to the contracts, the house will now appraise (FMV) at less than it would have a year ago. This means the IB instead of making $20K makes $10K.

    This is a loss due to the negligence of the RB.

    Scott, we have an issue here with who should carry that loss and the trust does not address this apart from calling for us to extend the term of the trust.

    That then involves the time/value of money and so on.

    My desire is to put it out there, to have a clause inserted into future contracts and alleviate the real loss that could be suffered by the IB. It is up to us to tweak the contract when we find holes in an attempt to improve it.

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