Category Archives: Equity Holding Transfer™

The preferred seller-assisted (Owner-carry) method for transferring real estate from lone party to another, without compromise of any governmental or industry regulations (i.e., Garn St. Germain; Dodd-Frank or Executory Contract admonitions). ‘Avoids standard credit history and down-payment obstacles.




March 14:

I received a call from my partner’s bandit sign (“I Buy Houses, Full Price, All Cash or Terms Any Condition, Any Price”)

The caller was a Mr. Sam Brown who says he has a house in Mission Hills, California that is worth maybe $150,000, but which has a $164,000 loan on it and work to be done. I asked him “what he would like to see happen.” He says he is just looking for someone who would take over his payments. I then ask how much work needed to be done. He says maybe $10,000 worth. My comment is: “Woo Doggies!”

Next, I ask how far in arrears his payments are. He indicates that they are current…’for the moment anyway. I then ask what he would do if I were not able to help him. His comment is that he just wants to walk-away, and that he has no cash and will not be making any further payments, irrespective of whether or not I take the house.

I tell him that I’ll call him back the next day after checking the title and getting some comparable value information together (comps). The comparable sales in the area show the property to be worth perhaps $155,000.00 to $160,000.00 after fix-up (‘still no equity for me).

March 15:

I call Mr. Brown and arrange to meet him at the property that same day.

After seeing the mess (broken windows, a yard full of trash, weeds up to the windows, windows frames that didn’t meet the walls, peeling linoleum on the floors, dry-rot and termites), I comment to Mr. Brown that I can see that he is truly in a pickle on this one…he agrees and reiterates (in case I didn’t hear him the first time) that he has no money and has no choice but to let it go back to the bank if I don’t want it.

After inspecting the house, I determine that actual costs to bring the property to a reasonable cosmetic condition (with good, but cheap, labor and parts) might run no more than $6,000 to $7,000.

I reason, as well, that by keeping the loan in place and asking for $10,000 up front from a resident co-beneficiary on a 50:50 equity share, I can get all the work done and perhaps have a little left over. I figure I can advertise it at $165,000 and perhaps be able to start out at break-even (without cash out of pocket) and with a couple thousand in my wallet.

I then have Mr. Brown sign a 15-Day Option to give me 15 days before I have to make my final commitment (I try for 30, but he’s afraid of having to make another payment…I know, bad logic…he was never going to make a payment anyway).

Upon handing him the NEO (Non-Exclusive Option) to sign (i.e., ‘with a twenty-dollar bill stapled to the front), I also give him an unsigned copy of the Offer to Acquire (both documents available on this site), ‘explaining that the twenty-dollars is just for legal consideration (‘not really necessary, but stops a seller’s inquiring about an Option Fee).

March 16:

I beat it to the county court house and record a “Memorandum of Option,” then over to the newspaper office to run my ad:


3 Pmts and Clos. Costs
Moves you in. Nice $165K 3+2
Home. Needs TLC. xxx xxx xxxx

March 18:

I have my friend “Old Unemployed Bob” put a coat of gray paint on the front of the house and have him frame all the window and door openings with 1 X 6 boards which paints a nice bright white. We (Bob and I) pick up all the trash that is in the front yard…’and throw it all in the back yard.

Next, we Roto-Til the front yard and plant some flowering bushes along the front of the house and along the walk. ‘After two or three hundred dollars at most, the house looks quite “cute and cozy (as they say)” FROM THE STREET (‘called “Curb Appeal”). The plan THEN (and only then) is to begin working on the rest of what needs to be done, in hopes that someone might just drop by and offer to do the rest of the work for a reduction in price, before I’ve had to spend much more money.

March 20:

Bob dismantles the “things” that will eventually have to be repaired (e.g., ‘pulls the tub away from the wall where the dry rot is, removes the window sills that don’t meet the wall, takes the doors off the kitchen cabinets that are to be resurfaced, etc. (‘no hard work, ‘just partial dismantling …’thereby creating the illusion of “Work in Process”).

Note here that even though I haven’t exercised my Option, I’ve only spent about $400 at this point for everything.

March 24:

After the front of the house is cleaned up, and once the ad hits, the phone calls start hitting my voice mail, one after another. I return all of the calls and repeat the same mantra over and over again with every caller:

“Yes, I have this great little house over there on Blyth Street in Mission Hills, and if you can afford the nine or ten thousand that it’ll take to get in, and the $1,200 or so in monthly payments…after adding tax and insurance, of course: I’ll just GIVE IT TO YOU (pause). The only thing I want out of it is to have you put the loan in your own name, ‘or sell the property in a few years, and at that time, IF there’s been any appreciation we can just split it.” (NOTE: If they don’t like the ‘split appreciation’ idea, you can say: “No problem. If you’d prefer, you can come in with $19,000 instead of $10,000 and you can have it all.” They invariably want to get back the $9,000 deal.)

With each caller, I tell them that the house is being worked-on at the moment, but that if they want to see it, they have to come “with their rose colored glasses on,” because it’s a real mess at present.” I tell them that we haven’t had a chance to do much of anything yet…’or even haul off the trash.

Then when they show up, I make sure that my buddy Bob has tarpaulins and plastic sheets spread out over the floors and counter tops, and that paint cans can be seen in various places (‘needs to look like something’s going on). With all of the callers, I tell them to drive by the house first and then call me if they like what they see (from the street) and have an interest in it.

Remember…the place looks great from the curb: I want them to see it from the street, and then begin rationalizing all the shortcomings, and building-up their “want-to” while they sleep that night).

March 26:

The fifth or sixth caller calls back and asks if we can meet at the house to work something out. Maybe 7 or 8 others have said they’ll drive by, but haven’t called yet. I know we’ve got a live one at this point.  So I once again remind the prospect that the house is a mess and that he’d better have a good imagination for “potential” and for what things COULD BE, rather than what they ARE. He laughs and agrees, and we meet.

After an inspection of the mess, he asks when I might be finished with all the work…I tell him maybe as much as a month or two at most (I know he’d like to move as soon as possible). He seems discouraged, but I then tell him that if he’d like to finish the work himself, I’ll knock a couple thousand off the price and, another $2,500 off the $12,000 I need upfront to get into the property.   He now can get in for just $10,000 plus the first payment when it comes due).

I fill out an Offer to Acquire from him to me–and have him sign it and accompany it with certified (non-refundable) funds in the amount of at least one full monthly payment obligation $1,200.00 (‘could be any amount you specify).

March 27:

I return to Mr. Brown, the seller, in order to give him my signed (‘and already accepted) purchase offer. First, however, before giving him the paperwork, I tell him that the property is a lot worse than I had first thought. I see him wince a little. At that point I tell him about the termite problem and tell him that he’ll need to pay the $2,000 for the tenting and spraying, but that I’ll take care of everything else. He heaves a sigh of relief and agrees, ‘assuming that I’m paying the $10,000 that he estimated the refurb to be, and that I’m also paying all costs of marketing (‘when anyone says they don’t have money, ‘what they mean is: “Well, I have some, but I don’t want to spend it unless you pull the right levers).”

April 1:

The property is tented…at Mr. Brown’s expense. The poison is sprayed, the termites begin singing “Cum Bah Ya” as they grow weak and are no longer able to hold hands; and as their grip fails and their little arms fall to their sides, the house crumbles and falls down (‘No, just kidding…they all die and go to termite Heaven, I’m sure).

April 10th: 

I complete the paper work for the “Blyth Street Land Trust” and have Mr. Brown execute the document (‘as the only beneficiary at tht point): thereby appointing Equity Holding Corp. as the trustee.

April 11th:

I complete the “Assignment of Beneficiary Interest” agreement from Mr. Brown to my resident co-beneficiary and me, and then complete the “Beneficiary Agreement” between us.

The Beneficiary Agreement designates our respective percentages of ownership of beneficial interest in the trust as: 10% retained by Mr. Brown; 40% to me; and 50% to the Resident Beneficiary (Mr. Seabury). However, I arrange to have it stipulated in our agreement that Mr. Brown will forfeit his 10% to me and any claim to profit, at the trusts termination (‘I just need him to hold onto it for now in order to avoid the current lender’s due-on-sale admonitions; any reassessment for property tax; and payment of Transfer Tax (i.e., ‘there has been no sale of the real estate, ‘only a transfer of beneficiary interest in an inter vivos trust—personal estate).

Note here as well, that I leave Mr. Brown with 50% of the voting rights so as not to invoke property tax reassessment and conveyance tax: however, I receive a Power of Attorney from him in order that I might vote his rights, and not have to involve him in management decisions.

May 1st:

The resident co-beneficiary brings the rest of his money in, ‘executes all documents, ‘makes his first payment on the contract and is given the keys to the property.

May 2nd:

The deed to the trustee is recorded; a triple-net lease agreement between the Trustee (Equity Holding Corp) and the new Resident Beneficiary is executed; and he (the RB) and his family move into the property and the work on the property is begun (‘i.e., the RB “takes possession”).

All signed documents are sent to the trustee, who retains the collection service (Equity Management Services) who, without charge, begins payment collections and disbursements for the term of the agreement.

May 4th:

I receive a check in the mail for $10,000 including a mandatory one-month Contingency Fund (to be used for eviction if it is ever needed).  Now, when the trust and the accompanying triple-net occupancy agreement terminate, the property will be sold or refinanced by the Resident Beneficiary.  And as all costs of sale are paid; I will get back the equity that I carried (the difference between the loan amount at start and the $160,000.00 “Mutually Agreed Value” at inception (the MAV); the Resident Beneficiary will receive a refund of his original $10,000, less any recurring costs, whereupon all remaining proceeds will be divided equally between he and me.


So far (2 years into the deal), that property has increased in value to about $210,000; I receive a $100.00 p/mo. positive cash flow each month; the loan has paid down by about $3,600. I therefore have earned approximately $33,000 on what was an over-encumbered property that no one else wanted, and which involved No Down Payment from me  (‘just a refundable Contingency Fund from my Resident Beneficiary partner); No Credit Application; No New Loan; No monthly payments (for me); No Management costs; No Maintenance Costs, No Up Keep or Refurbishment costs.

Furthermore, the lender’s due-on-sale clause was not violated; the property is protected from creditor claims and tax liens, bankruptcy; marital dissolution disputes and Probate should any party die.

By the way, when this property sold three years later, it sold for 210,000 and my Resident Beneficiary and I split a bit more than $50,000 (‘along with three years of positive cash-flow and the money was paid up front).

Cool, eh?

Would you like an excellent coach and lifetime mentor to teach you how to do all of this this with virtually every type of real estate, ‘while safely, legally, efficiently and silently mirroring every (any) type of Creative Financing system, without any of the risks and down-sides (‘i.e.: Straight Lease, Lease Option, Lease Purchase, Straight Lease with Income Tax Deductions, Contract For Deed; Land-Sale Contract, Equity Share, Wrap-Around Mortgage, etc.

Bear closely in mind that we do ALL of this without a Due-On-Sale violation; without compromise of Dodd-Frank (Owner Financing) legislation; without creation of an Executory Contract; without the need for a new loan; without standard credit qualifying; without escrow; without typical loan approval and underwriting delays; without a mandatory need for new title insurance.

And closings can take a little as a week or less.

[OK, in all humility, I may not be singularly the best investment coach and mentor in the world: but, seriously, ‘how can I argue with the many thousands who insist that I’m wrong about that?].  ;o)

Creative Financing

As profitable as traditional real estate financing can be re. the acquisition of investment real estate, one should never overlook the real benefits of so-called “creative financing” and the myriad ways by which so many otherwise hidden doors to wealth and prosperity can be opened to you…’and to thousands of others who may have been penniless and “credit-less” in the beginning.

The average real estate investor today is not unlike a person who takes an average job with an average company and expects to reap the financial rewards that are typically reserved only for those who take risk and put their very lives on the line every minute of every hour in order to create cutting-edge, innovative products and services, that they, themselves, acquire and administer…’without bosses, time clocks and domination by others whose company stature depends upon standing on the shoulders of those who keep them in their loftier job descriptions by diligently doing as they are told.

While it is theoretically possible, it is none-the-less unlikely–if you’re interested in breaking the mold of mediocrity that is barring the achievement of your highest financial dreams–‘that you ever will do so while being someone else’s employee.

‘If you agree, let’s talk!

In this article I’d like to go in to some  explanation of how creative real estate financing works, and how it can help virtually anyone to achieve real financial rewards by employing some simple strategies and some new ideas that lie well outside of the proverbial “box” for most folks.

It’s often said that there is nothing new under the Sun; however, a closer look at that old and tired adage will prompt a revision thusly: “There is nothing that can ever be needed to create something new, which is not already under the Sun and immediately available to anyone capable of converting thier wishes, wants and unspoken desires to honest Needs.

When you and I rely only on institutional financing sources – primarily banks, credit unions, etc. – we are, by definition, limiting our options due to Fannie Mae and Freddie Mac having strict rules in place regarding the amount of money and credit you must have, and how many mortgage loans they can authorize for you.  With this realization, one has to stop and wonder why the acquisition of income producing real estate (‘or one’s own home) should necessarily have to conform to such institutionally imposed limitations.

The big question:  ‘Why must you and I conform to what everyone else does…because everyone else does?

Who should dictate that someone can’t give me a free and clear house if they so desire?  Why can’t someone give me a house that FNMA FHLMC is not interested in financing?   Why does a government backed or insured lending institution get to dictate what I can buy, inherit, trade-for, take-over or steal?  [Well, OK maybe not steal…the government does enough of that]

Although, the government is there, in theory at least, to protect you and me and our fragile fiat economy: their stringent home-buying and selling rules, ‘no matter how much needed for the sake of free-enterprise, can seriously obscure real investment opportunities for those of us who make some of  our own rules and who don’t mind marching to a different drummer from time-to-time..

This is where creative (i.e. “innovative”) financing comes in.  I.e., instead of going to your local lender for financing, you can instead exercise one of the many creative investing options that are openly available to you twenty-four hours a day and seven days a week: ‘thus allowing you to sidestep many of the “ordinary” impediments that are designed to “protect” most of us; but which also penalize many of us (i.e., Options, Wraps, AITD’s, Contracts for Deed, Bond for Deed, Equity Sharing, Flips, Assignments, fractional ownership timeshares, multiple owner trusts, etc..

“Some Methods of Business Financing Lying Outside the “NORM”

The beauty of creative financing is that just about anything goes...’assuming it’s functional, legal and doesn’t harm anyone. For example let’s say Oprah Winfrey decides to offer a tenant in one of her properties the contractual right to take the property’s title without concern for credit or standard qualifying parameters, ‘that would technically qualify as creative real estate financing, especially if Oprah were unconcerned about a loan-to-value ratio or any particular employment history,

The number and types of creative real estate financing devices are limited only by the imagination of the parties in the transaction, and one’s own ability to clearly and persuasively impart your own knowledge intent and need relative to the acceptability or advisability of the transaction at hand.

Consider this one “extreme” example (‘just one of dozens):

Mr. and Mrs. Jones haves beautiful home with a mortgage balance that is greater than the value of the property, and they no longer wish to own and continue paying on the property.  ‘You happen to know of a friend of yours who can afford the large payments, but has faulty credit and not enough money for a 20% down payment.    ‘Is there any chance of making any money here by solving the problems of the homeowner and your friend…’and your own bank account?

Well then, ‘what if you were to agree to take-over the property and those payments; and then make your friend a partner with you, who for half of any future profits, agrees that he and his family will live in and care for the property at his own expenses, and who is far more concerned with the affordability of payments and the amount of cash necessary for the move-in , ‘rather than about short-term appreciation potential and the property’s resale value in, say, 5, 6 or 7  years?

In this scenario, let’s say the property is worth $300,000 with a loan balance of $350,000 and the payments are $2,800 per-month (‘with, say, 25 years left on the underlying financing).  Instead of  a $75-$85,000 down payment and closing costs of $20,000, you put your friend in the property for $10-15,000 (‘which becomes the acquiring party’s refundable contribution, but which goes into your pocket until the sale or re-finance of the property at some point in the future).  You establish a monthly payment amount of,  $3,200 per-month, along with an agreement to sell or refinance in 5-6 years, ‘at which time, from the proceeds of the disposition. he receives a refund of his original contribution, and you and he share in  the remainder of any profit having been derived from any net appreciation, loan principal reduction, your upt front money and your positive cash-flow over the term of the agreement.

Thank about it:  ‘In this scenario, how much did you spend up front?  (Hint: rhymes with “bluthing”); how much did you pay per-month?  (Hint: rhymes with “cluthing”); how much did upkeep, insurance and property tax costs you?  (Hint: rhymes with “smuthing”); and how much credit risk did you assume when taking over the property and the payment stream?  (Hint:  rhymes with– “nun”)

Possible problems?  

Payments too high for this type of home?   Might the seller prefer paying for, say, the tax-deductible insurance and property tax for a while, in order to avoid the $800 to $1,000 per-month continuing negative cash-flow and maintenance and management costs and responsibilities?

The loan is non-transferable?  One avoids compromise of the lender’s the due-on-sale clause in any loan by placing the property in an inter vivo  trust and instead of selling the property, ‘selling beneficiary interest in the trust (i.e., rather than the property’s title interest. (12USC1701-j-3) 

Owner financing is prohibited (re. the Dodd-Frank Act):  When the property is in the trustee, the only “sale” having taken place is that of personalty and not realty, ‘and not of concern in the Dodd-Frank Wall St. Consumer Financial Protection Act).

What about foreclosing on an errant tenant buyer: When the Equity Holding Trust transfer™ is employed versus a title transfer to a buyer, the tenant beneficiary is never on title and has no basis for claiming possession of “Equity” in the property for purposes of forestalling eviction and forcing a drawn-out and costly judicial foreclosure and ejectment processes. There is never a need for foreclosure: ‘merely a simple eviction process (‘paid for by the mandatory Contingency Fun having been posted by the resident beneficiary at inception). 

What if I and my partner, or either of us, and the seller have disagreements:  Not unlike an escrow process, the trust property’s title is legally and equitably held by a third-party (trustee) who can only respond to mutual direction by all parties acting in concert, whereby intentional failure to comply could bring about a civil or criminal action.

Creative Financing Is Innovative Financing

One should know well that creative financing strategies aren’t simply ways of avoiding down payments. Creative real estate financing is, in essence, an all-encompassing way of looking at the funding of  real estate transactions without needing to rely on the socially-accepted tradition of getting a bank loan with a 20% down payment (‘which system is designed for purposes of ameliorating any risk that the bank might be taking) and making payments for 30 years  or more.

Creative financing can entail no more than pledging small amounts of equity in multiple properties that you own, in lieu of making a down payment on a property you wish to acquire. While it may seem unusual, ‘this process – cross-collateralization – is a creative financing technique that has been used for decades in commercial real estate, and by forward-thinking residential real estate investors.

Cross-collateralization is less common than, say, lease optioning, subject-to financing or even putting government charitable programs to work for you in funding real estate transactions. These strategies can all be used to finance real estate acquisition, disposition and management; and can certainly help to grow your investing portfolio at lightning speed.

Probably the most common form of creative financing today involves the seller’s accepting all or part of the risk associated with real estate transfer, by agreeing to carry the mortgage personally along with a promissory note secured by the property. This, again, can allows for purchase or sale without restrictive credit or down payment concerns.

You might think that the average motivated seller wouldn’t want to consider a creative real estate offer when they could just as easily get all of their cash up-front from another buyer. You’re partially right: the average seller might not be inclined to accept a creative financing offer (‘but you might be shocked to learn how many marginally motivated sellers there are who would indeed consider carrying paper via creative seller-financing).

ost creative real estate transactions don’t involve “average” sellers.  ‘Instead, they involve highly motivated sellers with special needs, whose circumstances simply cannot be addressed by selling their property traditionally to an ordinary, run-of-the-mill investor with access to a line of credit or an unlimited supply of cash. 

Want another example? Read on…

What if you had a property that you absolutely had to sell because you’ve chosen to live nearer to a family member who is receiving radiation treatments due a rare form of cancer?  Then, what if the property you wanted out of had a bedroom “decorated” with a large tree branch having crashed through the roof during a windstorm –i.e., ‘during a period when the property was uninsured due to a memory lapse on your part?

What if you had a a large house with marginal or no equity and not enough family left to fill it, say, during a time of recession in the real estate market?  Might you consider some seller-carry options in order to avoid losing thousands of dollars?  Here you can see how such a circumstance would motivate you to at least consider creative financing if it meant being able to get rid of a burden that you no longer had any use for.

One of the most invigorating aspects of creative real estate finance is that it sometimes involves asking the owner of the property to participate in financing, as in the case of a Contract for Deed, a Lease Option, or a subject-to mortgage take-over.

The world of creative financing is much larger than can be explored here,  and can also include putting government programs to work for you by letting Uncle Sam pay all or part of the costs of acquisition, financing, refurbishment or finding and/or retaining tenants.

Creative real estate financing includes bringing like-minded investors into your real estate projects by using private-money lenders. These private lenders – typically busy executives or others with a desire to earn an above-average returns on their investments – are often willing to lend money for real estate on a short-term wholly asset-based risk.

Yet still another creative financing strategy might be using a self-directed IRA to fund real estate or to accept cash from other investors who wish to use their self-directed IRA for investment opportunities. 

Hard money (asset-based) lenders:  I would be remiss if I were to ignore one final creative financing method: hard money lenders. While hard money lenders won’t necessarily be your first choice in generating real estate investing cash, they are a source that can provide capital when all other options have failed.

You do want to be careful though, when using hard money because rates and terms can be somewhat exorbitant; but in certain cases, they can make perfect sense and can be the difference between having a deal that gets done and one that remains an unfulfilled dream – ‘teasing your consciousness with the promise of untold profits – only to snatch them back at the last second.

Hard money lenders can allow you to seize real estate opportunities that you might otherwise have to let pass: ‘so for that reason alone, they are easily worth the cost and typically easy to work with

Example:  House worth $100,000 wherein the seller will let you have it, but wants some cash up front.  You tell the seller you can give him/her $50,000 in cash if he/she’ll carry the rest for you on monthly payments.  You then borrow out $60,000; give $50,000 to the seller and put $10,000 in your pocket, whereupon you bring in an Equity Holding Trust™ tenant-buyer, or a maybe just a lease Optionee, to make the payments for you.


Your financial security in this business is wholly dependent upon on your ability to bend and sway with the times and the opportunities with which you are confronted.  “One-trick Ponies” don’t last long in this business.   Motivated sellers come in a variety of colors, shapes, body configurations and intelligence levels; but the one constant that you can always count on is that every single one of them has a piece of property that want you to take them out from under.   In our business we don’t ever need to look for properties: ‘we look only for motivated sellers (…and strangely enough, each of them has a property they don’t need!).

There quite obviously are many challenges before you as you immerse yourself in the creative real property financing business…’and there are some excellent teachers out there who would love nothing more than to tutor and mentor you (‘and one of the best coaches of them all is yours truly, the beloved personal author of this here doggone article.

While there are indeed some challenges associated with learning these varied strategies and techniques, the biggest one before you now is that of accumulating the knowledge you need to make all of it a reality for you…in the shortest amount of time and having someone you can rely on to help you through it all.

Call me @ 800 409 3444 for superior tutelage and professional mollycoddling.

‘Hey, I’m not saying that I’m singularly THE  best in the business: ‘but, seriously: ‘How can I argue with everyone who’s ever known me?   ;o)



OK, you’re on an elevator headed from the parking garage to the fifth floor and there’s a person standing next to you, looking up at the lighted digits above the door, who turns and casually sizes you up and asks: “So…’what do you do for a living?”

What do you say?

  • “Oh, I’m in sales.” (Meaning: “None of your business, and you’re not going to be standing next to me long enough to get into any details anyway, so let’s let it go at that.”)
  • “I’m an investor.” (Meaning: “Envy me for 30 seconds …and think of me as someone you wish you could be…’whether I am actually that or not. And always wonder what “kind” of investor I might be…’as if you really gave a hoot”).
  • “Me?  ‘For a living? ‘Oh, not a whole lot these days…’how about you? What do YOU do?” (Meaning: “None of your business. But if you insist on talking, fire away, it’s your nickel!  Me? I’ll just pretend to listen as you babble-on…’oops, well, doggone, here’s your floor already!”)
  • “Me?  I’m a teletype operator having a bit of a struggle finding a job, what with all them photo facsimile machines out there these days. If it weren’t for my taste for beans and Spaghetti-O’s, my wife’s taking in laundry and clipping coupons, I’d be…’like…’well… SOL! How about you? What do you do?” (Meaning: “Are you a loser too? Gawd, I sure hope so, because it’s awfully lonely here on the corner of Out-of-Touch-with-Realty Street and Co-Dependency Boulevard.”) “ OK, alrighty then…(‘as the elevator door opens) ‘you go on now and have yourself a nice day…hear? (‘you say in a southern dialect).  Then to the back of the closing elevator doors, you whisper, “Damn! I wish I could afford a suit like that.”

Or..’.maybe you’d answer the elevator question this way:

“Well actually, I work here in the building during the day; but I also dabble in real estate.” (Meaning: I’m unhappy with my plight in life and am trying to better myself without risking anything by letting of of my life-raft. ‘So don’t judge me by what my answer would have been, if I hadn’t added the “but I dabble in real estate” part.”

Or…’how about this one:

“Who me? Oh, I’m a big time real estate investor.” (Meaning: “If you’re really interested in what I do, you’ll ask more questions and get me started, and, once I’m on a roll, I’ll explain how you can benefit greatly from my services.‘ Otherwise…’Oh damn, we’re already at your floor.”)

Now, think about it…’that person who was standing beside you for the short ride is now gone forever, but may well have been someone you could have helped, and received value from in the process…’had you only said the right thing…’i.e., ‘had the proper response been immediately handy and ready to be spouted without thinking about it.

That fellow passenger may in fact have had a house to sell at a bargain price; ‘he may have been an owner in distress willing to let you just take over his loan; ‘he might have been a rehabber looking for a deal.

That guy next to you might have been a prospective buyer for the house or condo you just rehabbed. The fact is that your co-passenger was an ‘all-ears, one-man captive audience’ for those 30 seconds of your life. ‘Why on Earth didn’t you sell him something?

Well, the reason you didn’t even try to sell him something, was because you presumed he didn’t really want an answer to his question and didn’t care enough about you personally to give a hoot about what you might have to say.  Or…’maybe…just maybe…he was just a lonely guy looking for a 30 second buddy to jabber meaninglessly to for half-minute.

All of these assumptions may in fact have been absolutely on the mark. But the big question is: Why didn’t you understand that the actual question was “What do you have that might benefit me?”  Why didn’t you use that precious free time to your maximum advantage?

Consider what “might” have resulted if you’d said something like the following instead: 

“Oh me?  I help folks buy and sell homes and investment real estate in all price ranges without cash or credit.”

There you go…7 seconds on the button and 23 left over.

Then if they say “Oh really?”  That’s when you continue: “Yup, if I’m buying, I pay full price, all cash or terms: if I’m selling I don’t require loan qualifying, a credit reports or big chunks of cash up front. Here’s my card, let me have one of yours.”

There’s still another 15 seconds, and we’re not even to the fourth floor yet…’if the “prospect” is interested in you or what you just said, he might by pass his floor, or ask that you step off the elevator with him for a minute or two; ‘if he’s not interested, ‘you just stare blankly at him until the door opens and he disappears, never to be seen again (‘by you, anyway).”

Now…’if that fellow passenger just happened to have been a prospect (buyer or seller) and by chance you had titillated his fancy (‘as it were) with your pre-planned, memorized, elevator speech, the question is: Did you give him every chance to know who you were and what you can do for him, were he to fit one of the criterion for your business?

Sure you did! But with those other lame answers that everyone else uses…’could any of them have made the slightest bit difference in anyone’s financial life…’much less the life of the guy headed for the fifth floor…’or your own?

“Who me?  Well, I’m an insurance agent: I make widows wealthy and I get royalties from having coined the phrase”God Forbid.”  Nope! Sorry, but you merely wasted your precious moments with that person.

So what’s the point of all this? Well, let me see. How about the point being:

1) We should all find a tall building and ride up and down in elevators all-day proffering 22 second elevator speeches to everyone who comes aboard?  No?  Well, ‘um…

2) Elevators are a great place to find motivated buyers and sellers? No? OK then,

3) It’s alright to talk to strangers on an elevator? Maybe…’at least we’re getting closer!

4) If I am ever caught between floors in an elev…No! No! No…

The actual point is simply this:

You must stop what you are doing right now, and take a half-hour to work out your “perfect,” sure-fire, concise elevator speech.

Once refined (and set to memory) resolve to always have your elevator-speech at the ready when those opportunities arise for your 22-second presentations.  You’ll be finding and qualifying prospects everywhere you go with the minimum amount of effort and maximum effect without intruding on anyone’s time.

Your audience will let you know instantly whether they are prospects or not. The ones who don’t need you and have nothing to offer you will say: “Oh that’s nice and begin talking about what THEY do for a living (‘at which point you remember having forgotten to turn off your coffee pot at home, or you can begin humming “It’s a Small, Small Word”).

The E.S. (elevator speech) is an absolute necessity for those of us in this business (especially in THIS business), and it works everywhere you go: at Church, at a cocktail party, a Chamber of Commerce Mixer; in  the checkout line at the grocery store; at your AA (“Auto Club”) meeting; when meeting your fiancée’s parents for the first time; when meeting your daughter’s fiancée for the first time (…the latter being far worse, believe me…’whomever invented nose rings and tongue piercings is an ass…idiot); standing in the Unemployment or Welfare Line (…Ok, scratch those last two…with a good elevator speech, you’ll never need either one).

THE MESSAGE AGAIN:  Develop at once a brief and concise Elevator Speech! Memorize it word-for-word, and be ready to recite it at every opportunity when someone steps-up and says: “What do you do for a living?”

Here’s mine:

“I’m in creative real estate investing, ‘always looking for good deals to buy, or good people to coach and mentor in picking up no-down, no-credit income properties.”   

Here’s an old one that, for some reason, never made me a dime:

“Shut up! What I do for a living is none of your %^&ing business!  Open your yap again Butt-Brain, and I’ll slam it shut for you!”  

I don’t know why, but I never got any significant traction with that one.


While utilizing a variety of credit resources – creative and institutional financing, hard money loans, and even private money – will help you to reach the pinnacle of real estate investing success much more quickly than you could with cash alone, the way you handle your personal finances can mean the difference between success and failure, and how quickly you can reap the rewards available in today’s real estate market. Getting a handle on your debt is much easier than you might think.

Reducing Your Debt Load

Let’s face it: monthly payments are a drag on any budget, but when you’re trying to squeeze every last dollar out of your meager paycheck so you can realize your dream of real estate investing riches, it becomes even more critical that you stretch your available cash as far as possible.

If – like most people – a large part of your monthly spending involves making monthly minimum payments to multiple credit card companies, you’re well aware that this spending enriches the card companies in the form of interest payments, but your balances come down very slowly.

Here’s how to dramatically ramp up the speed and watch those balances drop – and how to avoid increasing those balances with unwise spending.

For this exercise in financial empowerment, you’re going to need a few things:

All of your credit card statements
A calculator
A pen and paper
A beverage of your choosing

Look through each of your credit card statements and list the balance for each one in descending order from smallest to largest. For now, ignore the interest rate for each card. I know this flies in the face of the logic used by many of the so-called financial experts you see on TV, but I have a very good reason for advocating this approach – which I’ll explain more fully very shortly.

Once you have the balances listed, I want you to list the monthly minimum payment for each credit card next to the balances. Take a look at this example so you have an idea of what I mean:

Visa Card #1 $377 balance $15 minimum monthly payment
Visa Card #2 $536 balance $21 minimum monthly payment
MasterCard #1 $1183 balance $36 minimum monthly payment
MasterCard #2 $4219 balance $56 minimum monthly payment
Discover Card $5925 balance $146 minimum monthly payment

Now I want you to think about how much cash you have available on a monthly basis for attacking this debt. If you haven’t already done so, you should have a monthly budget that guides your financial decisions. If not, you need to create a workable budget today based upon your current income and financial situation.

For the purposes of this illustration, I want you to pretend that you can afford to apply an extra $250 per month towards paying down your excessive debt. It may be more or less than this amount, but this will give you a good idea of what I mean.

When you make your monthly credit card payments, I want you to pay the monthly minimum payments on each of your credit cards with the exception of the first one. Instead of giving the first one (Visa Card #1) their minimum monthly payment of $15, I want you to apply the entire $250 that you have for debt reduction, in addition to the minimum monthly payment of $15.

I realize that some of the financial experts advocate that you apply the extra payment money to the credit card with the highest interest rate because, they argue, the interest rate determines the payment and it will take longer and cost more to do it the way I advocate.

They’re absolutely right; it will.

By doing it my way you gain an important psychological advantage that the other approach can’t match. In two months time, Visa Card #1 will be paid in full, which will then reduce the number of credit cards on which you’re making payments. That forward momentum will give you real, tangible results – which will motivate you to continue what you’ve started. You can’t put a price tag on motivation and the sense of financial empowerment that comes from crossing a debt off your list and realizing that you’re making real strides towards actually taking control of your financial life.

The potential savings you could realize by following the advice of these experts is minimal, but if you don’t want to spend a penny more than necessary in order to get out of debt – and you don’t need the psychological victory, feel free to pay off the higher-rate cards first. Don’t waste too much time getting hung up on the process; the progress is what really counts!

Once you’ve taken care of the first card on your list, apply the minimum payment from the first card to the second one, and so on, until you have all of your credit cards paid off.

Controlling Your Spending

While it’s important that you reduce your existing credit card debt, you’ll never be successful if you don’t also control the credit card spending that gave you that debt in the first place. There are several ways you can go about reducing your reliance on credit cards, but in a perfect world, you would just promise yourself that your days of financing today’s wants and desires are over and that you’ll simply pay cash for those items from now on.

The reality is that many people are weak and can’t follow through with simple promises not to spend. If you can’t control the urge to spend, you may have to cancel your credit cards and put your personal economy on a cash-only basis. However, you might want to consider one of a few alternatives to cancelling your credit cards. These are admittedly off-the-wall choices, but they work – and it can be fun explaining to others the lengths to which you were willing to go in getting your spending under control in order to achieve your very serious dream of real estate investing success!

The Ice Baby Technique – This simple technique can help prevent unwise spending decisions by forcing you to delay the urge to spend. Simply place your credit cards in a small container of water – and then stick it in your freezer. Before you can use your credit cards, you’ll have to thaw them out first. While this technique won’t damage your cards, it will put your spending on ice, while giving your better judgment a chance to kick in before making a financial decision that you could regret.

The Boxed Plastic Technique – Rent a safety deposit box at your local bank and place your cards in the box. While you can still access the cards in a true emergency, you probably won’t be willing to drive to your local bank branch and go through the hassle of getting the cards out just to catch a sale.

The Hide and Seek Technique – Another option is to pull all of the shoeboxes out of your closet and to randomly place your credit cards in a box before replacing it in the rear of your closet. Don’t pay attention to exactly where in the closet your credit cards are. If you get the urge to spend, you’ll be able to get to the card – once you locate it.

Granted, these are unorthodox steps to helping you to control the urge to use your credit cards. There’s no doubt that they’ll work. It might seem a little foolish to wait for credit cards to thaw, take a trip to your local bank to “check” them out of a safety deposit box, or hunt for them in a pile of boxes. But they will have the desired effect; they will help you to control your spending.

By controlling your spending, you can get your debt under control, which will give you more money for the very serious business of creating wealth through real estate investing. The profits are real, the lifechanging nature of this opportunity is easily worth the cost, and the time for you to jump into real estate is NOW!


Some of us are born with certain gifts that seem to automatically make superstars of us without a lot of effort (‘natural athletes, natural actors, natural musicians, artists, and writers…the unnaturally “gifted”).  But alas, most “superstars” have attained that status by virtue of their common birthright. In fact, most of us have to establish whatever super stardom we are ever to attain, by the sweat of our brows, and most often doing so in the face of sometimes seemingly insurmountable obstacles and handicaps with which the evolution and unfolding of our individual lives have bestowed upon us/ (i.e., in order to test our resolve).

As far as any of us know with certainty, we didn’t choose the geographical location of our birth, ‘our parents or their nurturing abilities or their mindsets; …’neither did we sort through and choose the circumstances under which we, or our parents, were raised.  We are, however (none-the-less), victims of all of those aspects of our own heredity, parentage, peer-influences and early environmental factors. Fortunately though, we’ve each been bestowed with the gift of Free-Will, and the right to override, eliminate or neutralize any part of our personal beingness and neural programming that we are mentally strong enough, and willing enough, to look at closely enough…’and take the time and actions necessary to understand it and work through it, around it…’in spite of it.

This aspect of who we are, and whom we are entitled to become, has many names: ‘Directed-Destiny; Programmed-Life-Management; Self-Discipline; Structured-Determination, Focused-Achievement, and so on.  ‘But what it all boils down to is the reality of one’s ‘self-esteem, self-motivation and personal determination.  In other words, every one of is a composite of the circumstances and obstacles encountered throughout the process of living a human life from birth to death.

The most destructive error committed by so many of us is living without access to, or a full awareness of, our absolute right to self-determination (‘i.e., not knowing with any certainty that any reasonably “normal” human can become whomever he or she chooses to be–‘despite the steady stream of conflicting experiential influences that are encountered hour by hour throughout the course of every human lifetime.

When a person mistakes desire for necessity, i.e., ‘allowing wishing, hoping and wanting to replace the concept of acknowledging honest “needing,” the prospect of achieving maximum personal fulfillment in one’s life, diminishes exponentially with every “mock supplication.”  In other words, one’s praying for something superfluous relative to being or becoming whom you choose to be is a wasted effort.

Irrespective of whom or what you accept your God to be, ‘no prayer for something unnecessary has ever been answered, nor will it ever be even though unrelated synchronous events may make it seem so from time to time.   Consider the nonbeliever who declares before a large group of onlookers, “OK God, if you truly exist, strike me dead right now.”  ‘Nothing happens because the entreaty is obviously insincere and in no manner relative to any part of the supplicant’s life or welfare, or the evolution path of humanity.

From another standpoint, consider the likely result of someone’s praying that they will be made a millionaire within a week, when they have no need for more money than they already have, and have not considered what they will do with a million dollars should it actually fall from Heaven.  Consider how many “Aunt Mary’s” have passed-away due to a severe illness, after their entire family and their church has prayed for them to continue living despite their condition?  ‘Then considered the likes of someone like, say, Dr. Jonas Salk (1914-1995 – Polio vaccine) or Dr. Christian Barnard (1922-2001 Heart Transplant), or Madame Cure (“Marie Slowdowska-Curie 1863 – 193 – radiation): each of whom, instead of praying (i.e. “wanting” and beseeching an unseen force armed only with a “desire” for success) they Needed—‘with a burning desire for success)—’to assist in saving and enhancing the the lives of millions upon millions of human beings who would, ‘without the “Dire Need” that was such a crucial part of these famous people’s lives, ‘would otherwise all have died  of their maladies much earlier.

This concept of Dire Need being the Provider of abundance is what Napoleon Hill referred to re[eatedly in his book, Think and Grow Rich, as “burning desire (i.e., ‘unquenchable necessity).” It is only a burning desire that can lead us through the life-changes and mental programming and re-programming necessary for the fullest achievement of the abundance that is every free human’s absolute birthright and which each of us deserves.

To make a wish, we need do nothing but think it, retain it in our thoughts for a while, and wait and see what happens. With Dire Necessity, however, we must move several steps ahead, and acknowledge without question that unless the Need is fulfilled, we will actually die in some way or to some significant degree should the components of that which we summon into existence not manifest.

The part that most people have trouble understanding fully enough is that we humans are simply incapable of allowing any real Need to go unrealized. When it comes to Needs versus Wishes and Wants, we all will strive to fulfill every Need at any cost: while our wishes, hopes, dreams and prayers take a backseat until they are converted to Need.

Have any of us ever gone without water or food indefinitely?  No (‘at least none of us who are reading this article at the moment).  And that’s because we would die if we did.  And think about it, do drug addicts and alcoholics go without their regular ingestion of their chosen poisons?  No!  ‘Because a terrible sickness and feeling of imminent death and indescribable loss would overtake them and a major part of who they have become would have to experience a horribly painful trauma ending in death or something very close to it.

The fact is that no true need goes unrealized…ever! One might idly wish for food and drink and not get it right away: but when it becomes a matter of having it or dying, worms and insects become as tasty morsels.  A true Need for sustenance will never fail to appear (‘even to the extent of one’s own body’s resorting to ingestion of its own fat and protein reserves in order to prolong existence as long as possible.  Ergo, it would then seem that if a particular goal were to become a necessity incorporated within the concept of “avoiding elements of the loss of mortality, its attainment would be virtually certain.

In support of this concept, consider the reason we panic when deprived of air even for a brief while. It’s because without oxygen death is certain and imminent. When struck with any illness, our fear of dying calls our sympathetic and parasympathetic neural systems to the healing process ‘to the detriment of of the life-saving biological function of sugar, protein and fat stores.

When we have too little income, ‘why do we worry and fret about bills, creditor retribution, legal action and loss of our personal possessions? ‘It clearly is because we are overtly afraid of being unable to sustain our lives should we fail at those activities that we deem necessary for human survival.

It is the universal fear of dying that forces all of us to strive, ‘to forage, to earn, achieve and build (and re-build). Though we are hardly ever consciously aware of this ever-present, all-pervasive mortal fear, is always there: ‘prodding us ever onward, ‘relentlessly requiring toil, attainment, procreation and the building of nutritional stores and reserves.

In view of all of this, ‘doesn’t it stand to reason that if we would seek to accomplish something heretofore seemingly unattainable or impossible, that it would naturally manifest only if it were to be directly connected to our natural fear of death (‘i.e., making our heart’s desires necessities rather than idle wishes).

Let’s say you’d like to build a 40-story high-rise building, ‘or, say, a 1,200 foot-long aircraft carrier: you certainly are free to begin doing just that if you choose. Many humans over the years have in fact built thousands of these things, and were greatly rewarded for having done so. But, until completion of such a task becomes an absolute necessity, you and I will quite likely never start the project; and if we do start, we’ll likely never finish because doing so may become seemingly impossible relative to our understanding of physics, mathematics, metallurgy, plumbing, carpentry, welding, structural design, computer technology and seafaring.

So…who does build these colossal structures?  These builder are people, jut like you and me, except for the unquenchable burning desire that lives in them whcih directs them to fish the job and elicit all the assistance from human being to have the expertise that the designer may lack.  None of these people hope for completion of the project…they have a profound NEED for there there to be few barriers to completion, and they have planned sufficiently well that there needs will never have to rely on hoping, dreaming,wishing or praying for divine assistance to get the job done.  The know that their “God” only helps those who help themselves and will never pick up a hammer, screw driver or an arc welder or rivet gun to help finish the job..

It’s only when a major aspect of our life depends on the completion of the project, and the knowledge that we will die in part otherwise, that we will do all of what is necessary to complete the 40-story high-rise buildings or the aircraft carriers.  The determined achiever will simply do what all achiever have always done, ‘i.e., taking the concept from pure Potential by first imagining it, then converting thought to substance by first drawing it, and then adding dimension to make it physically real beginning with eliciting the help of others with disparate talents and abilities, and then seeing to its fully three-dimensional manifestation.

So…’before writing out your objectives, choosing a mantra, and heading off to visit Mahesh Yogi in India on your trek toward bliss, stop!   ‘And take the time to figure out what your goals actually are, and which of your “wishes” can be converted to “Need”; and then assess your resources for accomplishing your aspirations. Should you come up short in the “resources” area, then you have to write-out a plan for either attaining what you are lacking; or for replacing what you are lacking with something of equal value that you have more than enough of (‘e.g., physical work can replace the need for cash; eliminating someone else’s burden can replace the need for credit; patience can replace experience; caution, diligence and research can replace formal education; hard-learned valuable skills and tenacity trumps a university degree every time.

A good test of which Wants and Wishes can be converted to Need, and then to Dire Necessity is to ask yourself which of the following you could in-fact live without in reasonable comfort…if you had to.  Strike through those items that are not completely necessary, and without which some part of you would not surely die. Whatevr remains are those item that are beyond just idle wishes: ‘they are your Wants. But, it’s crucially important to know that until each Want is elevated to the status of a Need (‘a life-sustaining necessity) it will likely continue to remain no more than an allusive and baseless hope, if not a wholly unattainable Wish.

  • Full-time self-employment
  • More social acceptance
  • More public popularity
  • Fame
  • Prestige
  • A better/safer living environment
  • A rich person’s high-class lifestyle
  • A bigger and more prestigious home
  • A new, more rewarding career
  • A chauffer driven limousine
  • A new face
  • New teeth
  • A trimmer or more attractive body
  • New friends
  • Better friends
  • A larger bank account
  • A large stock portfolio
  • A retirement fund
  • True Happiness (Bliss)
  • Personal contentment
  • Freedom from drudgery (‘more time to nap and play)
  • More self-esteem
  • An enhanced inner feeling of personal value
  • A more vacations and the ability to afford them
  • A less strenuous, demanding or tedious job
  • A much higher income
  • A different or more attentive spouse
  • A new identity
  • A more attractive physique
  • A private airplane
  • Freedom from disease worries
  • A newer car
  • A more showy car
  • An executive job title
  • A bigger office
  • A well-defined life-purpose
  • Great spiritual fulfillment
  • Greater spiritual understanding
  • Absolute certainty re. the existence or non-existence of God, demons, ghosts, space-aliens, angels, mountain monsters and mental telepathy
  • The ability to comfortably take risks that will pay off a lot of mone

Prayers, Wishes, Wants (Desires)…and true Needs:

1)         Praying – Acknowledging your inability to attain a desire on your own, and presuming it might come to you by way of divine intervention

2)         Wishing – being dissatisfied with the status quo and imagining that some extra-local non-spiritual source will provide you with something not yet extant

3)         Wanting –Imagining something that is not present, but for which you are unwilling to exert any special effort for its attainment.

4)         Needing – Requiring something, without which an early level of death will surely ensue

5)         Dire Need – An object that must, by all means, be manifested at any cost in order to avoid death

Never forget that, according to Epictetus, a 5th Century BC orator: “[A person’s] Wealth is measured only by the expense of one’s [that person’s] pleasures.

”In other words, when life itself is your gift, and when the least expensive pleasures are your greatest rewards, you are already wealthy beyond calculation: no matter how much or how little money you have. My own true net-worth quadrupled when my children were born, and quadrupled again with the arrival of my grandchildren.

Think about it…who is wealthier: the man with a big house and matching mortgage, five tapped-out credit cards and a 72-month payment plan on a new Mercedes Benz convertible–‘or a well-loved and highly respected Eskimo hunter with eight good dogs, a jolly fat wife, seven healthy children and five years’ worth of walrus blubber in the basement…’and plenty more where that came from?

The answer is, of course, ‘the Eskimo…’but only until and unless he would develop an eye for more than he has and not be able to afford it: say, an insatiable taste for filet mignon, Chateau Lafitte Rothschild and Mercedes convertibles. Should that happen, he instantly tumbles from real wealth… to abject poverty…UNLESS those things are what he truly needed and knew with certainty that he deserved and could afford them.

Converting a Want to a Need, and a Need to a Burning Desire (dire need) are the first real steps in serious goal-setting, and the process requires much thought and definitive action. For example, if you’re having difficulty in making the life-saving decision to jump off the 200 foot high cliff into the cold raging river below, in order to save yourself from the menacing band of angry marauding indians who are hot on your trail just a half mile behind you, and out to kill you…’and drawing nearer every second…’just do this: Tie the end of a long rope around your waist, then tie the other end around a large round boulder. Now roll the boulder to the edge of the cliff.

If, at this point you‘re still squeamish about jump into the river below, but know you have to, ‘simply push the rock the rest of the way over the cliff…’depending upon the length of your rope, your fate will be sealed in a couple seconds once the boulder hits the end of that rope. You needn’t worry about making decisions any longer, y ou set your life on a irreversible path to salvation.  A true Need tied to a definitive action is what brings all “Potential” into material reality and into our lives.

In 296AD, the Praetorian Prefect (a high office in the Roman Empire), Asclepiodotus, commanded an army belonging to the emperor Constantius Chlorus (Emperor of Rome 293-306), and led his troops against the usurper British emperor Allectus. Having arrived in Britain to confront Allectus, Asclepiodotus *’easy for you to say…) burned his own ships to prevent his men from retreating.  By burning the ships, a dire Need was fulfilled that might not have worked out so well for Asclepiodotus, had his soldiers been allowed to turn and sail home when they saw how outnumbered they were going to be in a couple hours, when the going got really tough.

To become honestly wealthy and attain abundance in this life you must first know what it is that you honestly want, and then you must convert that Want to a Dire Need and give yourself no choice but success (i.e., burn your bridges, decide that there can be no safety nets or turning back to the “old ways,” that  you’ve definitively decided to escape.


One’s “POA” is that long rope and that big ol’ rock at the edge of the cliff above the raging river that was referred-to above.  It’s the relinquishing of those aspects of Life that have mired you down in the mud of a lack of satisfaction with your current circumstances.

The POA is your design for success. It is the very map of your destiny. It becomes your guide to all of what you must do to become who and what you ‘need’ to be (‘not what you ‘want’ or ‘hope’ to be), and to attain all of what you need to own and control during this roller coaster ride called “Life.”

Goals that are held only in the mind of the hopeful are never goals at all. They’re just random electronic impulses left over from unfulfilled desires—nothing more.  It’s only when hopes and dreams begin the physical transformation from potential (‘that which is yet to exist, but which hangs eternally in wait for you to call upon it) through the process of writing down what Wants and wishes you’d like to convert to Needs, so that these thoughts can begin to take physical form as they metamorphose into honesty  versus day-dreaming.

As has been said many times by hundreds of “motivators,” handwriting your goals is always preferable to typing them out in your word processor. The more arduous and physical the mind-to-hand transference exercise is, the more likely and more immediately the transformation will take place (i.e., ‘the moving of a conceptualization from the ethereal realm of pure ‘potential’ into our world of material reality).

Although I don’t believe that viewing your goals daily and repeating them aloud to the bathroom mirror, or moaning a mantra is ever necessary, ‘it is none-the-less a good idea to keep these written objectives in a safe and secret place, and review and modify them every few months.  Simply write a letter toyu inner=-self listing want you want and when and why you need it, and how you care for it and what you’ll do with it when it manifests.  Then then fold your letter and place it in a safe and private place AND FORGET ABOUT IT.  The real God doesn’t have to be beseeched or reminded about what you need: ‘it knows with certainty, because it is that part of you that has always answered all of your worthy prayers and brought all of your honest needs to fruition.

Forty years ago, I was dissatisfied living on only $326 per-month (before deductions); although with that income in those days I could comfortably (sort of) cover a $60.00 per-month rent payment; a $49.00 per month payment on my brand new Ford Falcon; I could buy gasoline for 29 cents a gallon (‘full tank for $6.00); J.C. Penny’s clothing; and all the groceries we needed, for about $15.00 per week. And…after the bills were paid we often had enough leftover to take in drive-in movie with two 19 cent Mac Donald hamburgers (with fries).  Oh, ‘and water was free back then (‘in those days we didn’t know it had to come in plastic containers and cost more per-gallon than jet fuel).

Interestingly though, most of my close friends at the time who made even less than I did could somehow always afford to buy a case of beer and a carton of cigarettes along with their groceries every week. I often wondered how they managed to do that, when we seldom had that much left over, especially for fun stuff. I once asked my buddy Bob about it and he jokingly replied…”Hey man, it’s because beer’s a number one staple in my diet and I’d die without it.”

I didn’t get it at the time, but forty years later I began to appreciate Bob’s philosophy. The fact is that I only “wanted” a case of beer, but didn’t need it, ‘so I couldn’t afford it. But ol’ Bob needed it…’and it manifested for him…every week.

If it’s not a Need, ‘then it’s only a self-perceived, presumably undeserved passing fancy.

In those days we associated with friends who couldn’t afford even as much as we could (‘much less ol’ Bob): but I felt somehow looked-down-upon by those with life plans, whom I most wanted to impress and associate with, such as my high school acquaintances who were coming out of college as doctors, lawyers, engineers, dentists; local civic activists; politicians, etc.). But 40 years later, because of learning to Need versus simply dreaming, hoping, praying, beseeching and wishing…’and constantly asking “How” (Versus Why: “Why me God?”),  I found myself earning as much or more than most of them.

Q: What do you suppose it was that I did any differently then than I had            done forty years earlier?

A: Absolutely nothing, except for adopting and following a mental                    process that converted my idle wishing into Needing.  T fit into my                idealized self, I had to create a realized self that was at least equal to my     peers.

Could I live without the extras that my life now brings?  Certainly! At least a part of me could; but the other part would die a little, ‘and that scares that part enough to “Need’ to avoid the loss.

Am I wealthier because of these things? No! Not at all!  ‘Figuratively richer perhaps, but by no means wealthier. But, I do choose to defend and steward what I have?

Would I gladly and freely give away any extra that I’ve been given or earned? You bet!

It’s weird…’but I’ve discovered that the more I give of what I have, the less I need to have, and the more I am given, ‘for some inexplicable reason.

This “reason” for success and wealth, by the way, is fully covered in the religious writings of the world.  What it boils down to is simply that the Universe abhors a vacuum.  And therefore, our deigning to create a void by giving something away can only result in the instantaneous refilling of the space resulting from the absence of that which originally occupied the space.

If something is missing in your life…’stop hoping for it to magically appear and begin needing it and making it manifest.

If you have more of anything than you need: ‘give it away and the void left by its removal, will fill up faster than you can prepare for it:

  • Give [it away] and you shall receive [more of it].”
  • “Seek and you will find [abundance]” ‘when it is truly needed and not just idly hoped-for.” This is the uncompromising universal law and promise of abundance!
  • Prayers are always answered for Seekers and Doers: ‘but never for Dreamers and Wishers.
  • Knock… ‘and the door will open [i.e. ‘when you figure out whichis the proper door on which toknock, ‘which door, by the way, exists solely within you…’not somewhere in outer space or in another extra-local dimension.”

In the face of any dilemma or quandary, ‘remember always to begin any imploration or supplication (“prayer”) with the word “How” and never “Why” (‘i.e., ‘instead of “Why me, Lord,” ask yourself instead, “How, Lord, can I resolve or overcome this obstacle?”  Then wait for the answer that has been lingering patiently in your subconscious waiting for the question?)

“Re-read Napoleon Hill’s, ‘Think and Grow Rich,’ and you’ll discover “The Secret” that he talks about ‘but never explains…’fully expecting you, the reader, to figure it out for yourself.

We all dance in a ring and suppose
While the “Secret” sits in the middle…’and knows.

 Robert Frost


Speak to him thou, for he hears,
‘and spirit with spirit can meet.
Closer is he than breathing
and nearer than hands and feet.

Alfred Tennyson


Oh yeah, ‘and long-live the marvelous third-party trustee, co-beneficiary, inter vivos title-holding land trust transfer (the ©Equity Holding Corp. Trust Transfer System™) that has been making millionaires and waiting patiently for you…’for the past thirty-years…

Bill Gatten
800 409 3444


 Let Your Buyer Do the Hard Stuff

Confidentially: Patching a nail-hole in the wall of an income property with toothpaste  (‘i.e., where a small picture might have once hung) is excessive refurbishing for me.

The average abandoned & distressed-property investor approaches the rehab and resale process pretty much the same way:

  1. They find a Don’t-Wanter” property owner
  2. They inspect the property
  3. They calculate all costs associated with rehabbing and remarketing
  4. They lineup their contractors
  5. They commence the work on the property
  6. Upon completion, they plant a “For Sale” sign in the front yard
  7. They sell the property
  8. They smile triumphantly at a job well-done while counting their money
  9. They then pay back their bank loan and all of their contractors (‘if they haven’t already done so)
  10. Then they get sued by someone…’the new buyer, or a contractor who feels that he/she is owed more money…’or a neighbor that is ticked-off about the rubble left by the contractors, or because a broken sprinkler head is spraying water into their bedroom window. etc..

If you’re following this model, you are no-doubt already succeeding in your real estate investment business: very definitely an enviable position in which to be.  But did you know that by shaking up the order of things, especially if you’re at all cash-challenged, you can dramatically increase the number of rehab projects you complete in a year – ‘and at the same time, be able to reach your goal of financial independence much sooner, whether you are brand new in the business or a weathered and worn Old Salt.

While you can’t do much about these steps as you continue following the same program used by so many successful investors, a few of the steps can be altered a bit – ‘which, over the course of an investing career, could mean earning a lot more money than will any investor solidly married to the traditional model.

It’s easier than you think and may sound a bit corny at first…’but do give the following some serious thought

The first thing you do once the don’t-wanter seller is found and convinced, is plant a large “For Sale” sign in the front yard.  While you obviously want to ensure that your telephone number is on the sign, you can actually modify in order to generate calls from potentially interested, non-traditional, buyers, sellers and other investors.

Here’s an example of language that could be placed on your sign, in order to get your phone ringing early (and steadily):

1650 sq ft…’Under renovation.

Call now & Choose Paint, Carpet
Cabinet Style & More

Priced to Sell Fast… 803 432-1234

Now, before beginning any interior work, consider just tidying up the front yard, ‘tossing any trash and unsightly detritus ‘into the back yard ‘out of view (for now).  While you may think that the interior of the property is the most important part of a rehab project, I want to tell you that what the outside looks like from the street is what creates “curb appeal” and is that which lures potential retail homeowners in for a better look later.

By creating a Faux Curb Appeal (‘think “movie set”) you have a real opportunity to generate all the cash you need, without incurring debt in the process.

Here’s a simple, easy-to-follow blueprint for success (‘taken directly from a couple of my own experiences in the San Fernando Valley, California, among several other in other cities and states):

  • Clean up the exterior in front of the property (i.e., ‘front-yard only) and make it look as close to an immediately livable property as possible. Anything you do on the outside in front needn’t be extensive or expensive.
  • Put up your For Sale sign near the street.
  • Decide what simple, inexpensive and attractive bushes will maximize the appeal of the property for passer’s by…’(again) for the least expense.
  • Next, paint the front of the house a medium gray color (‘i.e., ‘but not the back of the house or the sides…’just the front for now)
  • Then frame all visible doors and windows (i.e. visible from the street) with bright white 1″x6″  Pine strips.
  • Now paint the front door a dark red (with the same white door frame)

Unless there is already a nice, or restorable, lawn, roto-till the yard (‘front only) and plant a few colorful, full-body shrubs a few feet apart in parallel rows leading from the street to the front door, and along both sides and across the front of the yard.

It’s truly amazing how much curb appeal a property can be given by simply tidying-up and roto-tilling the front yard; ‘sprinkling some wood chips around any trees and the bushes (‘in the front yard).

In addition, don’t ignore the appearance of the house itself. If it has shutters, simply replacing them or painting them bright what (against the medium gray) can instantly double a property’s appeal – and can get people interested in seeing what coming changes you have in mind for the interior.

When tidying up the exterior of the house, ‘you can touch up the paint on the wood trim and do other little things to give the house a fresh, welcoming look. There’s an added benefit to doing things in this order: It is actually possible to sell the property before completing these exterior renovations.

Your “For Sale” sign – ‘combined with the interest-generating landscaping – will likely generate calls from several interested parties (‘and nosey neighbors). When they do call, you can offer to show the property to them as it is now.  And by giving any potentially interested taker the opportunity to pick out the color of carpet, interior paint, etc., you’ll generate tremendous interest because the average homebuyer either makes minor changes immediately after buying a house or makes a mental note to make some changes not long after buying it.

This strategy can be a real winner (‘As it has proven to be for me over the years), and pay huge dividends…

If a potential buyer gets to decide what color they want the carpet and paint to be, they will automatically have more interest in buying than they might if they wait until the renovations have been completed. If they like what they see, and choose to do so, you can place the house under contract t that time and collect an earnest money deposit, or a full Contingency Fund with which you can pay for renovations.

There’s another possible way of selling before completing your rehab, when you willing to “carry the paper” ‘as it were.

Some buyers will ask (or you can offer it) if you would be willing to let them make the repairs themselves, whereby you’d offer them a significant discount for doing so.

Under this scenario your rehab estimate of $20,000 could be converted to a discount for your ambitious buyer of, say, $10,000 or $15,000 (making you five or ten thousand in extra cash in the process).  However, doing it this way is best served by your having the ability to fully control the transaction and being able to allow your buyer into the property without him/her needing standard mortgage financing, ‘a particular down payment amount and/or perhaps without standard credit qualifying. In that the EHTransfer™ system allows for such quick and easy eviction, the posting of a sizeable Contingency Fund can provide quite valuable risk protection, as well as being an excellent deterrent to payment or other contract violation.

In this regard, you would acquire the property by a legitimate mortgage payment take-over, via having the seller place the property into the EHTransfer™, and making you his “Investor Co-Director Beneficiary.”

It’s at this point that you begin locating and installing a third (Resident) Co-Beneficiary in the trust and in the property, who will be contracted to handle all costs of ownership and paying you your desired profit up front (‘without having expended any refurbishment costs out of your own pocket).

Note here that in addition to the upfront amount you receive from your Resident Co-Beneficiary, you can also agree to share a proportionate percentage of beneficiary interest in the trust, which percentage correlates with each beneficiary’s percentage of net-profit that is designated to be shared upon the trust’s termination and resale or refinancing of the property.  I.e., in reference to future profits derived from appreciation and loan principal reduction (‘such profits can be agreed to be distributed in stipulated ratios of  25:75, 40:60, 50:50 or 60:40 percent).

Many buyer prospects with limited cash or credit are quite handy and more than willing to put some sweat equity into the property, particularly if they can save money in the process of becoming “home owners.”.

While you won’t be able to handle every property you buy in this manner, ‘before getting too deeply into your renovation work, these opportunities do come about fairly regularly, ‘allowing cash to flow more quickly into your bank account – and providing a quicker transition to your next profitable investment.

If you would like to do so, you can continue waiting until your renovations have been completed before selling the property, but by following the EHTransfer™ system, you’ll be able to buy more properties…more often…with more asset protection and more “qualified” buyers (‘i.e., in that all down payment and credit-qualification parameters are dictated 100% by you alone.

Moreover, ‘even though a good contract-abiding Resident Co-Beneficiary receives virtually 100% of all Fee-Simple homeownership benefits  (including tax deductions), ‘should any one of  them default in their contractual provision, there is never a need for a long and drawn-out foreclosure action to force dispossession.  A defaulting Resident Co-beneficiary in the EHTransfer™ is removed from the property by means of regular eviction, ‘the same as would be any defaulting rental tenant (‘i.e., ‘without an opportunity to claim holding an equitable interest  in the property (‘that’s held by the trustee)  in order to thwart eviction and attain free rent for months-to-come by forcing a time-draining and costly foreclosure action).

Always Keep the Long Term Hold in Mind.

Over the course of a 20 or 30 year real estate investing career, the EHTransfer™ system can mean that one can quite possibly buy and sell several more properties per-year than might happen otherwise…without money out of pocket; without needing to count on you or any other participant’s needing get new mortgage financing..

Thinking outside the box in this manner and defying anticipated norms is just one way you can blast into increased real estate profitability. ‘Although singularly the best way of all is one’s continuing to learn additional real estate tips, tricks and tactics. That is how you acquire that edge on the competition.

Continuing to learn, can quickly turn an ordinary investing career into a special one that makes you rich beyond your wildest dreams, because of your ability to handle any scenario that others simply don’t have enough knowledge to be able to do.

In case you’re already thinking about it…the EHTransfer™ does not, in any manner, violate any lender’s Due-on-Sale Clause, or compromise any part of the Dodd-Frank Consumer Financial Protection ACT re. Seller-financing (i.e., ‘a party’s ownership of interest in a title-holding trust is personalty (personal property) and not realty (real property), ‘and therefore not an issue intended to be addressed by legislation initiated by senators, Christopher Dodd, Barney Frank, Jake Garn or Ferdinand St. Germain).



Having been in the land trust transfer and facilitation business for nearly thirty years now, we get frequent questions from our clients and students around the country regarding comparing the (Illinois-type) land trust with the limited liability company (the LLC) as which might be the preferred asset protection device with regard to real estate holdings.  My response is always the same: An LLC will protect YOU; the land trust will protect YOUR PROPERTY, and when used together the protections of both are enhanced and your real estate holdings can be virtually “armor-plated.”

But irrespective of what the answer might be, never forget that:  “In today’s litigious society, holding real estate in your own name is tantamount to walking down “Starving Lawyer Boulevard” with a bullseye on your back above  the words: ‘I dare you! Sue me! I’m worth it! I own real estate, ‘so I must be really, really rich.”


The LLC is a limited liability company (‘not a corporation) that combines many of the features of a corporation, but which is more akin to a sole proprietorship or partnership, depending upon the number of members. In comparison, the LLC, as a pass-through tax entity affords its members simplicity in tax accounting and reporting.

Beyond those features, however, the LLC’s primary purpose is that of shielding its member-owners from any litigation that would befall the company and its assets. In other words, were an LLC to be established for the purpose of operating a packing plant and someone were to slip and fall into a meat-grinder and loose a couple legs, the claimant’s legal recourse (.e.g., ‘were he to have “a leg to stand on”) would be limited to the assets of the company, and not to any other assets owned by its operators (“members”) outside the company. Even is the business were to be taken over, or closed down and liquidated by a victorious claimant, ‘the owner’s home, golf club memberships, automobiles, furniture and private bank accounts would remain  beyond of the reach of the lawsuit.

Relative to the article you’re reading now, bear in mind that any company in operation could, ‘should it so choose, hold as its only asset, a single house, condominium, townhouse or apartment building…of several of them. In any of these vehicles: an LLC, LP (limited partnership) or FLP (family limited partnership)…all of which protect their members (owners) from claims against themselves personally…’and are considered by many to be the most ideal forms of small business ownership.

[For additional info. re. limited liability entities, go to:]


Much has been written in the last twenty or thirty years about the feasibility, functionality and versatility (‘and safety) of the “Illinois-type” Title-Holding Land Trust as an alternative means for owning, dealing in and protecting real estate.  Be that as it may, however, there continues to exist a major lack of knowledge as to what a land trust is, its uniqueness, and any real understanding by the legal profession i.e., of all that it can do for property owners.

For example, very few attorneys are aware of, and will argue in ignorance against, the fact that when a property is placed into such an entity, its real property ownership becomes solely that of the third-party trustee nominee, and the beneficiary/ies’ ownership is equitably converted to ownership of personal property [see the Doctrine of Equitable Conversion].  By this process both the property’s legal title and equitable title are vested in the appointed trustee, leaving the grantor/beneficiary with only a personal property interest in the trust, without ownership of the property itself: however…’be tht as it may the settlor retains the equivalent of fee-simple ownership none-the-less, ‘along with complete directive-control over the actions of the trustee.

Once vested in the land trust trustee, the property’s true legal and equitable title ownership is solely that of the trustee (‘one’s careful selection of trustees being crucial).

In such “equitable conversion,” the properly structured land trust provides its beneficiaries with all the protection that the law affords both real property owners AND personal property owners (‘i.e., limited partition rights by outside judgement creditors; anonymity of ownership; inability of judgment creditors (including the IRS) to reach the co-beneficiary land trust in order to lien its corpus (‘the property); the avoidance of a lender’s due-on-sale admonitions upon fractional transfers of beneficial interest (‘assuming that the borrower/transferor is a “natural person” under the law…i.e., ‘not a commercial enterprise (i.e., a corporation) to whom the loan was made and by which entity it is guaranteed).

Also note that inasmuch as one’s ownership in a title-holding trust is personalty and not realty there is no compromise of recent Dodd-Frank prohibitions regarding owner-financing of real estate (‘i.e., re. the Wall Street Consumer Financial Protection Act).

It is also too infrequently realized by attorneys (‘even real estate specialists) that land trusts per se are legal in all states, ‘although officially recognized only as “Use in Land” versus “Uses in Trust” in Louisiana and Tennessee.  What this means is that in these two states, landtrust are not illegal,but that ownership of beneficiary interest in a land trust is seen as equivalent to ownership of the real estate, and any errant tenant co-beneficiary would have to be judicially foreclosed upon, rather than being evicted (‘as is the case in other jurisdictions), ‘i.e., in order to rectify a contract violation (‘such as, say, a payment default).

By use of the land trust model described here, one can, by a simple assignment of beneficiary interest, easily transfer all or a portion of a property’s ownership benefits (‘i.e., w/r to four or fewer units) to another party with one brief assignment document.  I.e., without (necessarily) any  need for a new loan, specific down payment or credit requirements, escrow, new title insurance, credit approval, underwriting…or other lender involvement.

When a property’s title is held by a trustee-nominee for a third-party, co-beneficiary land trust, the property is, throughout the trust’s term, essentially in a state of “escrow,” meaning that during the trust’s stipulated term no single beneficiary can act unilaterally (‘i.e., ‘without the unanimous consent and direction of all beneficiaries acting in concert).

As well, (and where we come in) a co-beneficiary in a bona fide land trust can in-fact be appointed to lease the property from the trustee, and when given at least a ten-percent beneficiary interest in the trust, receive full tax treatment by the IRS as a homeowner regarding all income tax deduction benefits of mortgage interest and property tax deductions (IRC §163(h)4(D) & IRR #92-105), along with §1031 tax exchange and §121 exemption and exclusion benefits remaining fully intact.


Now…’couldn’t a person (yourself, for instance) armed with this information advocate placing its real property into a land trust and naming his/her LLC as a co-beneficiary in order, not only to shield it from public view, but also to hold it beyond the reach of potential judgment creditors (‘including the IRS), and to avoid transfer tax?

In effect, the title-holding land trust which is the basis for the proprietary Equity Holding Corp. Title-Holding Land Trust Transfer™ shields the property,while  the LLC shields the beneficiaries…’i.e., from litigation and the leering eyes of hungry lawyers and the spittle-dripping fangs of irascible judgement-seeking creditors. (Sorry…’got carried away there.  I love creditors..’but only when I am one).

Frequent Question: Which is better?  An LLC or a Land Trust for Holding Income-Producing Real Estate?

  • Unlike an LLC or a corporation, ‘vesting a property in the trustee for a land trust does not trigger the imposition of reassessment for property tax, nor does doing so incur transfer tax or tax stamps in any state. Neither does the land trust violate the lender’s due-on-sale admonitions, or compromise the recent Dodd-Frank legislation re. seller-financing restrictions.
  • Unlike as is the case with an LLC, the beneficiary of a title holding (land) trust receives the benefits of an IRS §1031 tax-deferred exchange, and/or the section §121 home sale exclusion, without regard to a particular “Continuity of Transfer” requirement (See below)

As noted earlier, an LLC, may be (‘should be when practical) made a beneficiary of the land trust or specifically, the Equity Holding Trust Transfer™: ‘i.e., ‘with the managing member of the LLC, holding the Power of Direction over the trustee (‘e.g., holding the power alone, or sharing it with co-beneficiaries).  The reason for structuring the transaction in this manner is that when the transaction’s primary goal is protection for beneficiaries from tort liability, the “naked” land trust alone can be made more effective and protective when coupled with the LLC as a co-beneficiary,  which LLC is funded  by the personal property beneficiary interest in the trust, rather than real estate.

And here’s why: 

Due to a gap in knowledge on the part of many beginning, and some seasoned, investors (‘and their too-often naïve legal advisors), ‘they are either oblivious to this important tool, ‘or they tend to set it up incorrectly.   Unfortunately, the trouble arising from the lack of experience and knowledge probably won’t present itself until much later (‘more often than not…’too much’ later).

Consider the case of Attorney Herkimer Phlurm (‘maybe not his real name) who sought to help an investor client protect his rental property from the risk of liability claims.   The investor asked the attorney, how he might best protect a recent purchase of an income property from threats of litigation.

Short on knowledge of trusts, ‘but long on experience in structuring corporations, partnerships and Limited Liability Companies (LLC’s), ‘the attorney created a nice little LLC for his client in which to hold title to his new property.  Following creation of the entity, and after recording the property’s deed, ‘both, Attorney Phlurm and his client, Rupert Schlitzberg (probably not his real name either), were pleased with the arrangement…’for a while (‘…but any ecstasy was short-lived).

In another year, Mr. Schlitzberg (“Rupert” to his friends) was shocked when he received an excise (transfer) tax bill from the county tax assessor’s office.  Surprise!

As attorney Phlurm might have anticipated and informed his client, ‘the vesting of his property in the LLC triggered a transfer-tax ($2-3,000), ‘in that the property was security for a mortgage at te time, and…’what’s more…‘the transfer to the LLC constituted a clear breach of the lender’s Due-on-Sale Clause (12 USC 1701-j-3), ‘thereupon opening the door for foreclosure on the mortgage ‘should the lender opt to do so (…at any time at all in the future…’obviously leaving the Schlitzbergers on “tenterhooks,”* as it were).

*Tenterhooks,” the expression comes from a tent maker’s extreme stretching of newly woven canvass over a square frame with heavy hooks lining all four sides and then wetting, shrinking then drying the material before coating it with waterproofing (‘See how much you can learn by hanging out with us?)

And…‘not only that… (‘Wait! there’s more), ‘the change of ownership also constituted full justification for reassessment by the county tax collector and quite likely, an even larger tax bill next year.

In one fell swoop there was: 1) taxation on the transfer; 2) violation of the lender’s due on sale clause; 3) triggering of county reassessment, and 4) imposition of restrictions regarding IRC §1031 exchange provisions (re. Continuity of Transfer).

The major error in this scenario was simply the lawyer’s being unfamiliar with the uses, benefits, features, advantages and nuances of land trusts ‘within the jurisdiction where the property was located.  In this case, the attorney’s oversight not only cost the client thousands of dollars, as well as jeopardizing other aspect of the real estate transaction: it also, as well cost the attorney a client.  While Mr. Phlurm sits scratching his head, wondering what happened, his client is out seeking a new and better informed lawyer.


Self-Employment Taxes:

LLCs are usually subject to self-employment taxes. This means that the profits of the LLC won’t be taxed at the corporate level, but will pass through to its members who will account for those profits on their personal federal tax returns. Oftentimes, these taxes are higher than they would be at the corporate level. Individual LLC members will pay for federal items like Medicare and Social Security.

Frequent Confusion With Company Roles:

Whereas corporations have specific roles (like directors, managers, and employees), LLCs generally do not. This makes it difficult for the company and especially investors to know who’s in charge, who can sign certain contracts and who can bitch at, or fire, whom.

Although reasonably compensated-for in a properly drafted Operating Agreement, in many jurisdictions, if an LLC member leaves the company—unlike as is the case with a corporation (or a land trust whose identity is unaffected by the comings and goings of “shareholders”) the company structure and its liability protection cease to exist.

In most (if not all) jurisdictions, as we have pointed out, the transfer of a mortgaged property into such a “business based” entity (i.e., corporation, LLC, LP, Business Trust or partnership) is fully taxable.

In any jurisdiction, ‘when someone opts to take advantage of the liability protection afforded by the LLC (re. limiting one’s personal liability), an ideal alternative is to fund the LLC with something other than real estate (‘mortgaged or not).  In other words, one can vest the property first in a trustee for a land trust: ‘then vest the trust’s personal property beneficiary interest—‘in the LLC (i.e., make the LLC “a” beneficiary).  Ergo, the property is now protected by the trust, and the owner is personally protected from liability by the LLC (‘not unlike wearing suspenders and a belt together)…’and…there is no call for reassessment, transfer tax or any other negatives that can be applied to the LLC.

The “Due on Sale Clause”:

Over our thirty years in business, we’ve received numerous letters from clients who reported that their lenders had “discovered the title transfer” (‘i.e., to the land trust trustee), and were claiming their due-on-sale admonitions had been skirted; ‘and that the mortgage was about to be called immediately due and payable (‘…and that mandatory retirement of the loan was imminent if foreclosure was to be avoided).

However, regarding such lender’s demands, ‘in each such case, a registered letter was sent to the lender’s Loss Mitigation and Legal Departments, suggesting simply that they review Title 12 of the US Code of Law, §1701-j-3.  In this particular code section it is clearly stated (‘in Law) that a mortgagor (home owner) transferring his/her property to a trustee for a fully revocable, inter vivos (“living”) trust is excluded from recourse provisions under the Federal Depository Institutions Regulations Act of 1982 (i.e. the Garn-St. Germaine Act): therefore, when the borrower remains “a” beneficiary of  the trust, ‘and wherein the trust document itself does not convey occupancy right to another (i.e., ‘such occupancy rights may, however, be granted by a separate lease document, so long as the lease is not for a term of more than three-years or contains a purchase option)–there has been no due-on-sale violation!

DUE-ON-SALE CLAUSE: The clause (Para. #17) in virtually all mortgage loans, that permits a secured mortgage lender (federal, state or private) to call the entire unpaid loan balance Due and Payable immediately should the property securing the loan be sold, transferred, traded, gifted or otherwise disposed of without the lender’s prior written consent (‘and without the borrower’s giving them the opportunity to charge more money or say “No” to the transfer).

Despite the due-on-sale clause and its implications in the creative real estate financing business, it is quite possible for one to take over the payment stream on a non-assumable mortgage loan without needing to fear, or even to be concerned with, a DOSC Violation…’and without violating it.

In order to effect such a take-over without there being an unauthorized transfer, one need simply assure that the property is, in-fact, NOT being sold, traded, hypothe-cated or transferred in any ‘unauthorized’  manner (‘i.e., one’s placing his/her own real estate into his/her own inter vivos trust is not considered an unauthorized transfer as per Title 12 of the US Code §1701j-3)).

In this regard, since placement of real estate in the borrower’s revocable living trust for “asset protection” purposes is fully allowable under the law (ibid); and since appointment of a co-beneficiary as Remainder Agent is a prudent thing to do when creating any kind of inter vivos trust: a would-be “seller (“owner of record”) need merely vest its real estate in bona fide corporate trustee for such a trust, and thereupon deal with the ownership interest in the trust, ‘rather than dealing with the title ownership in the property.

At this point, the buyer (‘i.e., ‘of beneficiary interest: versus interest in real estate) gains virtually 100% of the same incidents and benefits of Fee-Simple Real Estate ownership that any traditional buyer might in a traditional transfer of the property’s title, i.e.: income tax deduction for mortgage interest and property tax, use, occupancy, quiet enjoyment, littoral and riparian water rights, salability, and the right to ‘quiet enjoyment.”

The only caveat here is that the “living (inter vivos)” trust being utilized for this purpose must be an “Illinois-type,” title-holding [Land] Trust, and be fully revocable and be an inter-vivos trust (‘i.e., ‘in effect during one’s lifetime).   However, the land trust is, by its nature, wholly directed by its beneficiaries and ‘not by its trustee, as is the case with other inter vivos trust structure (‘such as, say, a “fully funded inter vivos family trust).  As well, ‘in the land trust, the legal title to the corpus (‘the property) as well as all “equitable” title, is vested in the trustee, who becomes the true (‘albeit, temporary) owner of the real estate during the trust’s stipulated term of agreement.

As a result of of the total vesting of title in the trustee, the beneficiaries themselves, hold only a personal property interest in the trust, versus owning real estate per sé; however, in this type of trust, the beneficiaries are none-the-less treated as property owners for income tax purposes (IRR §92-105).

The term of the trust is decided-upon by mutual-agreement of the beneficiaries, and can last up to 21 years beyond the “life-in-being” of any primary beneficiary (i.e., this rule is to prevent a Contract in Perpetuity).

The rule against perpetuity is often stated as follows: “No interest is good unless it unconditionally must vest, if at all, not later than twenty-one years after the death of some life in being at the creation of the interest.”

*When a part of a grant or will violates the Rule against Perpetuity, only that portion of the grant or devise is removed. All other parts that do not violate the rule are still valid. The perpetuities period under the common law rule is not a fixed term of years. By its terms, the rule limits the term of the contract to no more than 21 years following the death of the last identifiable individual living at the time the interest was created (i.e., the “life in being”).

Such terms generally run for from 1 to 20 years, with the understanding that, at the end of that time, the trust will be terminated and the seller’s interest (as little as 10%) will be forfeited to the co-beneficiary (buyer).  Such forfeiture merely needs to be in consideration of some future act by the buyer (e.g., prompt payments; strict adher-ence to contract terms; a share in appreciation or overall profit; etc.).

Often times, however, beneficiaries might mutually agree to share profits at
termination in proportion to their respective beneficiary interests (50:50, 90:10; 75:25, etc.).  n tis regard, it is most important understand here that the verbiage of a lender’s Due-on-Sale clause doesn’t always convey exactly what we or our attorneys THINK it does, or what the lender expects us to believe it does ( little trickery here)…irrespective of whether a lender’s exercising its rights under a DOS clause are “real,” “false” or indifferent.

What the DOS does infer is: “UNLESS PROHIBITED BY APPLICABLE LAW…” the lender has a right to foreclose, if the title to its security is transferred into a trust, and if a beneficiary interest in that trust is sold or transferred.”
Well…make no mistakes about it! Such action ‘IS’ indeed prohibited by “applicable law.” The Law (The Federal Depository Institutions Regulations Act of 1982) strictly prohibits ANY lender from taking exception to a borrower’s placing its property into its own inter-vivos (living) trust (such as a Title-Holding Land Trust), and appointing a 2nd party to function as a remainder agent co-beneficiary.  Tjs is so because the directors of this type of trust are the beneficiaries, ‘not the trustee.  Ergo, the person to take over in the event of the demise of the director would be another beneficiary: not another trustee.

Further, there is nothing to prevent the same co-beneficiaries from leasing the property out to any one they may choose…’say, to the trust’s 2nd co-beneficiary, for example.

Overall, the process described here creates what is tantamount to a legally constructed, and very safe and well-shielded ‘Wrap-Around Seller-Carry’ device.

Since the original owner of the property has named the second party as a beneficiary in the trust and leased the property to him/her under a triple-net lease (i.e., net, net, net lease, wherein the tenant pays mortgage interest, property tax and handles all maintenance), the resident beneficiary (or investor co-beneficiary) has obtained all the benefits of a standard sale… ‘without there actually having been one.

When proposing that a seller remain on the existing loan for you: if you really want to be assured of ‘getting the deal,’ its important that you make it sound so good for the seller that he can’t refuse.  In order to do that, you’d suggest that for his own safety and peace of mind, you’ll pay to put the property into a neutral trust (‘if he prefers), and that he need never transfer the property’s title to you at all… until you’ve proven yourself, by eventually refinancing or selling the property and paying off
his mortgage.

In this scenario, you’d explain that you’ll consent to merely becoming a co-bene-ficiary in the trust until the loan is fully retired in, say, 6 months (or 3, 4, 5 or 20 years…or more).

Note that this arrangement (i.e., a “Equity Holding Trust Transfer™”) gives you, as the buyer, 100% of the tax write-off (See IRC § 163(h)4(D)); 100% of the use, occupancy, possession; 100% of the equity build-up (from principal reduction); full rights to all rents; and other profits upon the sale or other disposition of the property.

Note as well, that you also have any and all other rights ordinarily only available under the so-called “Bundle of Rights” in any form of Fee-Simple Real Estate

In the Equity Holding Transfer™,  the seller needn’t ever take any chances with you; and you don’t have to take any chances with the seller either. By virtue of the structure of the Equity Holding Transfer™, the trust property is protected from liens, suits judgments, divorce actions or claims, bankruptcies or anything else you can think of…’on both sides…’including state and/or IRS tax liens. Moreover, the due-on-sale clause becomes pretty much a non-issue in that the property has not been sold; the title has not been transferred (other than to the borrower’s authorized trust); and there is no consideration for a ‘purchase of real estate’ per se.

In addition, the commodity being transferred (beneficiary interest in a trust) is characterized as Personalty (personal property), and not Realty (real estate), and therefore is not subject to the same creditor rights as would be real estate.  And…the transaction has not infringed upon the lender’s foreclosure rights, or compromised its security interest).

In closing, do note that for maximum safety, it recommended that at least 10% of the trust’s Beneficiary Interest and 50% of the beneficiary’s Power of Direction should be retained by the settlor (seller), with an agreement to forfeit that interest to you upon disposition of the property at the trust’s termination. However, also note that the Settlor Beneficiary’s fifty percent Power of Direction can be given to you by means of either an Assignment of Power of Direction, or by a Revocable, Limited, Power of Attorney.

The reason for the seller’s retaining a percentage of beneficial interest is to satisfy the requirement that if the seller places his property into a revocable trust, he must be and remain a beneficiary of that trust. The reason for keeping the 50% Power of Direction intact, is that most county jurisdictions will not re-assess the property for
property taxes, or require transfer fees, when one transfers its property to a bona fide living trust, so long as no more than 50% of the “voting rights” are being conveyed by the transaction.


Much has been said and written about the ©Equity Holding Corp  Trust Transfer™ concept (i.e.,, the EHTransfer™) and it appears that a select few are finally beginning “to get it.” However, probably because the so effectively replaces the need for other creative financing schemes and dreams, it often falls under attack by its detractors (especially by certain lawyers who make their livings by doing that which they more fully understand; and by those who tout and teach older, less protective, concepts such as wrap-arounds, contracts-for-deed, equity shares and lease options).

In actuality EHTransfer™ supports the objectives of each of those seller-carry vehicles, while offering a much sturdier platform for protecting the property, and therefore the principals, from the myriad risks and downsides of owner-carry financing. Few proponents of subject-to financing wouldn’t agree that there are numerous risks inherent in one’s agreeing to share a property’s title or mortgage loan obligations with another.

The EHTransfer™: A property is vested with a land trust trustee, and instead of conveying title interest; a PARTIAL beneficiary interest in the trust is assigned to a would-be buyer. That party, once named as Successor Beneficiary in the trust, and a Net Lessee in the trust property becomes entitled to all the benefits of homeowner ownership, including income tax deductions for mortgage interest and property tax.


Let’s look into a few potentially risky shortcomings pertinent to creative real estate financing, which downsides can be avoided by use of the multi-faceted title holding land trust transfer. The objective for anyone acquiring real estate ownership should always be minimum risk and maximum protection, without sacrificing income or capital gain potential.

Violation of the Lender’s Due-On-Sale Clause: 

Whether deemed a real “threat” by certain “gurus” or not (i.e., those who claim that banks just don’t care about unauthorized transfer), a DOSC call can be disastrous for someone who cannot afford to refinance when a lender calls its loan due because of an unauthorized title transfer (We hold letters from major national lenders clearly altering their stance on such transfers, stating that the EHTransfer™ model does not create a compromise of their alienation admonitions). 

The Threat of Either Party’s Legal Actions Creating an Attachment or Charging Order upon the Property: 

In any so-called Wrap, Contract for Deed, Lease Purchase or Equity Share arrangement, multiple parties are involved, and each one has either a valuable financial interest in the property, or has a primary payment obligation relative to its mortgage. As a result, there is always a real danger that either party’s liens, lawsuits, marital disputes, bankruptcy or probate proceedings could seriously cloud title to the subject property, thereby creating a grave predicament for the other party. This threat is virtually eliminated by use of the co-beneficiary, third-party trustee, title-holding land trust, in that a beneficiary’s ownership in such as trust is purely of personalty (personal property) rather than of realty (real estate) and cannot be partitioned by judgment creditors (legal opinion letters on file).

Difficulty in Dispossessing an Errant Tenant/Buyer.

When an equitable interest in real property (real estate) is conveyed to someone with a possessory interest in that same property, such party is no longer subject to eviction for damage or non-payment.  Instead, dispossession of an “owner” must take the form of foreclosure, and may also require ejectment action and quiet-title action in order to regain possession, entry and salability of the property.  In this regard, one would be well advised to employ an Equity Holding Trust Transfer™ for conveyance of the property to a prospective buyer. Such an arrangement might remain in effect until such time as the tenant/beneficiary sells the property, or refinances and purchased it outright at the trust’s termination.

In the Equity Holding Transfer™, a corporate trustee holds the property’s legal and equitable title while the tenant/beneficiary remains under the threat of simple eviction (rather than foreclosure), while concurrently enjoying all the benefits of ownership, but without title ownership of the real estate itself.


To effect the objectives of a Lease Option (i.e., a unilateral agreement to sell), the land trust property can be leased with a contractual understanding that the tenant may purchase the property or a future interest in the trust itself at some later date. Such purchase can be set at full Fair Market Value, less any monies owned to the tenant by the trust. And instead of an Option fee, the tenant can post the some predetermined amount in the trust‘s required Contingency Fund. The monthly lease obligation then becomes an aggregate payment including mortgage principal and interest, the property tax, the insurance, a monthly trustee’s holding fee and an overage that becomes the settlor’s (or investor’s) positive cash flow. [Note that any contract verbiage connoting an option to purchase constitutes a due-on-sale violation (re. 12USC1701-j-3)] 

To effect the objectives of a Lease-Purchase (‘a bilateral agreement to sell and acquire) 

In the Equity Holding Corp’s land trust transfer system, the anchoring land trust’s tenant- beneficiary can be assigned as little as a 10% beneficiary interest in the trust with a promise to convey the remainder upon that party’s  tenant/buyer’s outright acquisition of the property at the trust’s termination.  All benefits of ownership including tax write-off, appreciation, principal reduction and pride of ownership are available to the tenant throughout the transaction.

To effect the objectives of a Wrap-Around Mortgage or Contract for Deed 

The would-be buyer/”vendee” is made a successor beneficiary in the anchoring land trust and given, say, 10% or more beneficiary interest in the trust, to hold until a new loan would be obtained and the property be purchased outright.

To effect the objectives of an Equity Share 

The land trust’s tenant/beneficiary is given a 50% interest in the land trust, and a corresponding 50% share in net profits when the property sells or is refinanced at termination…’by the tenant (‘following a return of the seller’s or investor’s initial equity at inception).

The Equity Holding Tax Lease 

A tenant/beneficiary is given, say, a 10% beneficiary interest in the land trust, along with the full burdens of ownership, along with an agreement to relinquish its interest in the trust at termination. In order to be entitled to the income tax deductions for interest and property tax, the tenant need only qualify under IRC 163 (re. “Qualified Residence” parameters), being paying all taxes, insurance, monthly payments, and hold at least a 10% beneficiary interest in the underlying title holding land trust.  I.e., at termination the trust and the triple-net lease terminate and the tenant-beneficiary is free to move-on or negotiate for an extended term of years.



Can you acquire investment real estate and get wealthy, despite starting off with ‘No Credit,’ ‘Marginal Credit’ or even ‘Bad’ Credit?  ‘And how about making money in this business when your perceived short-comings include — ‘having no cash either?

Wait! Let’s make it even worse.  Let’s presume you’re sans (i.e., without) cash and credit, but you also have no experience, no professional contacts…’and you’re ugly.

[Were any of these factors really to matter, regarding success in this business, ‘especially that last one-I’d still be slopping pigs and plucking chickens for a living (…’not meaning to disparage any chicken-pluckers or pig slop slingers out there, by the way; ‘but I do find accumulating and counting money and real estate titles is a far more rewarding enterprise)..

Regarding the first question (i.e., “Can you…”), the answer is a resounding “YES”! But that’s true only if you have lots of other stuff too, ‘such as a self-starting ability, determination, sincerity, maturity and at least a modicum of salesability… and–above all– ‘a Burning Desire to Achieve!

Do you need every one of these qualities in order to be financially successful?  No! But if you are missing any one of them, your maximal chance of success is reduced proportionately with each missing element…’with special attention to the “Burning Desire” part.

With no disrespect for those who have sacrificed, scrimped, and saved to maintain perfect credit, I’d like to say that I couldn’t adequately express the respect (‘and no small degree of jealousy) that I have for you and your achievement. Personally, however, I have never been blessed with a lot of money and good credit at the same time.

Throughout the many phases of my own personal development (‘beginning somewhere around the Cenozoic Epoch), I’ve had both…’just never simultaneously.

Nevertheless, even without an abundance of cash and/or credit at any one time, I’ve managed to accumulate several million dollars’ worth real estate at various times over the years; ‘with almost none of it acquired with, or because of, credit (or cash).

And although, to some extent, the cash and credit parts of life-in general have improved a bit for me, I still prefer to acquire property silently and secretly without a cent out of my own pocket, and without a new mortgage loan or monthly payments.

Real estate is virtually free for me, given the way I do it, ‘in as much as my resident-beneficiary tenant-partners make the payments, handle all repairs and upkeep, and cover any upfront fees when I put them in the properties).

For anyone whose credit has been damaged: ‘know for sure that reestablishing it is a prudent thing to do; however, don’t forget that one’s not “using” their credit (the American Stoic approach) is far worse than one’s not having it.  Although, millions of us do just fine without it for long stretches of time…because we can get it.

Here’s my logic: If people with great credit don’t use it, and get rich anyway, ‘why would someone else without any need to worry about not having it?

And that’s where I come in.  In my own case, I filed a business BK in 1989, and gave away, and spent, everything I had ever owned in my life (‘everything!) in order to pay off my creditors. It took a while, but I did it, and I didn’t suffer much in the process, because within a month of having gone through the ordeal, I acquired a beautiful $520,000 home without a penny out of my pocket and without any need for credit. I even gave the seller (‘Mr. and Mrs. Gil Burrell of Granada Hills, California) my full credit report along with all the information leading up to my bankruptcy.

I got the property based solely upon my pleasant demeanor, decent “selling skills” and my plausible explanation for the BK and bad credit. Because of the sincerity I portrayed along with my offer to provide my plan for correcting the problems (and the “expensive looking” suit that I was wearing), the idea of credit per se became a non-issue for getting that property…’and another fifty more over the next couple years.

After that period in our lives, unfortunately the Burrell house was shaken apart by the 1994 Northridge Earthquake, reducing its value overnight by $300,000, leaving an over-encumbrance of $200,000 plus: ‘at which time I just walked-away; ‘and by the same techniques, acquired another home  a mile or two distant, and carried-on with our business (i.e., ‘no down, no credit, no new mortgage real estate acquisition), whereby my resident co-beneficiaries in the trusts that held titles to those properties, paid all the bills and handled all maintenance and general expenses for me (‘payments, taxes, insurance, HOA dues and a reasonable positive cash-flow to me)…’in exchange for use, occupancy, full tax-deductions, loan principal reduction, hoped-for appreciation and Pride of Ownership.  [Neither I nor they were on title, or on the loans, but with the EHTrust™ transfer system that we teach, that doesn’t matter.]

So…’about the time I began to feel secure, successful and cocky again re. my exquisite home-buying skills, and making better than average money by teaching hundreds of others how to do what I knew how to do so well, ‘the 2007 Subprime Crisis swooped in, hit hard and gained momentum clear up to, and well-beyond, 2010 (‘and is still haunting hundreds of thousands of the “totally screwed” throughout the country today.

In 2007 and the early part of 2008, I was fortunate enough to see the proverbial “writing on the wall,” and successfully sold-off several of our properties…the one’s with real equity in them (‘in which I had pure profit due to having no real money invested in them).

However, as is the often the case …‘When the Student is ready…the Teacher…’swoops down from out of the sky and beats the living crap out of the poor student…’in order to cure him of his hubris and wholly unearned cockiness.

Overall, in the melee I lost 53 properties due to the crisis, and managed to use up the profit I’d gotten from my earlier sales in attempting to salvage the rest…’all to no avail, while the economy continued on its path from “really bad” to atomically super-shitty (‘pardon the expression…’it’s an ancient Druid term derived from an amalgam of the ancient Druid words – “Shingle,” and the abbreviation for “Teletype”: I.e.: Shi[ngle]+TTY).

Since that time, we’ve survived, and we do reasonably well in having silently acquired a modest number of other properties by precisely the same methods…’i.e., ‘wholly without credit or cash, but with being more picky about our tenants and how much up front cash they come in with.  We now make sure they don’t have bullet holes in their cars, and that their pants are not lowered below their buttoxes ‘so as to display their gang colors on their drawers or any “vertical hemispheric demarcation (‘as it were).”

I wouldn’t say we’ve recovered completely…yet, ‘but we’re getting there, and we do eat pretty regularly, and are reasonably well-protected from the elements (wind and rain) ‘as long as the next storm doesn’t blow the canvass off our makeshift tent poles. (‘No…’actually we have a very nice home in Henderson Nevada and thank God for giving us the prime-rate crisis as a reason for permanently putting California in our rear view mirror (‘no offense to Californians…’its just that your taxes are too high and your politicians are too crooked…’and all of them are certifiably goofy).

Without ANY apparent “credit worthiness” we’ve managed to acquire credit cards (secured and unsecured), and to finance several nice automobiles. ‘Over the years, I must say, that we just haven’t suffered much, even in view of losing 53 properties and a couple million in equity: due largely to having very little invested: ‘as the properties were all acquired without down payments, without new mortgages; and our resident beneficiaries paid all the bills (‘i.e., until they couldn’t do so any more… ‘at which time the properties went back to their original owners, for their decision as to whether they wanted them back, or preferred to let them go to foreclosure (‘virtually all went the foreclosure route, but there were no loans in my name and I was not on single title…’my corporate trustee was and was beyond all responsibility and recourse).

The upside of it all is…’well…’what all losers say when they finally get back on their feet after a losing streak:  “Aha!  Now I know what to do the next time this happens (‘although, providence will probably figure out another prank with which to punch me in the gut until I get the point).”

And that point is a simple one: The prudent person should do everything in his or her power to get their credit in order; but in the meantime, ‘never let the absence of credit negatively interfere with, or affect, their investment pursuits.  One simply does not need cash OR credit in order to be a successful real estate entrepreneur… ‘assuming a good grasp of their intentions, and a good escape plan, when starting…’and assuming you have a solid source of information, education, know-how, mentoring and coaching, and a source for sound and dependable advice and encouragement.

Following–‘in the order of their overall importance–are the tools you need in the No Down, No New Loan, real estate investing business:

  1.  An honest dissatisfaction with the status quo
  2.  A burning desire to achieve
  3. An honest NEED for increased abundance. I.e., ‘if you DON’T NEED it…’you won’t get it!  ‘Without needing (‘having a burning desire for it) you only have wishing, hoping and dreaming to depend on, ‘which are each on par with horse-racing and crap-shooting as far as attaining is concerned).
  4. Tenacity: I.e., ‘the undaunted ability to stick-to-it, no matter what!
  5. Resiliency: I.e., the ability to shrug off a failure (‘or several of them in a row) and move on with undiminished zeal
  6. Selling skills: Learned and/or natural sales-ability (‘i.e., the ability to listen and think at the same time; always listening more than talking; remaining 100% honest and forthright while staying unattached to the outcome)
  7. A professional and business-like demeanor re. your personal grooming and attire. E.g., a misplaced body-piercing or ornamentation can cost you millions in lost opportunities in just a few years…’without your ever even knowing that it happened, ‘much less Why
  8. A solid understanding of Real Estate and Real Estate Finance
  9. A source of available cash…or someone to call-upon who has it… or a way to avoid its necessity
  10. A real comfort in product knowledge, allowing one to “go commando” in this business.)   *Comando: No cash, no credit, No experience and perhaps Limited sobriety

In this business, without at least the first five elements in the above list, you are likely destined for failure (‘in this business).  However, with #1 through #5, ‘along with any one of #6 through #10, your chances of success are good.

With all of, say, 9 out of 10, your success is unavoidable, and abundance is already yours, and just patiently waiting for you to reach for it and demand it into you life.

The best advice anyone will ever give you: ‘Find that Self-Serving Need in your life that is feeding upon your financial deficiency and destiny…’and eliminate it ‘once and for all.  Know that anything pleasurable that you decide you can live without will always (invariably) be immediately replaced by something else that is better for you and you life’s aspirations.