Date: Wed, 18 Oct 2006 07:33:11 -0500
From: "SJ" 
Subject: Re: Newbie commercial loan post
Newsgroups: misc.invest.financial-plan
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"John A. Weeks III"  wrote in message
news:john-A76ACE.06545318102006@sn-ip.vsrv-sjc.supernews.net...
In article ,
 "SJ"  wrote:

> One of my partners fathers put up a clear rental property as that
> collateral, but is not one of the borrowers on the loan.  Our loan officer
> proceeded to tell him that "we couldn't have got the loan without him" and
"
> your contribution is the most of any of the 3 partners".  I had explicitly
> informed the loan officer not to divulge anything about the loan to him
and
> he agreed that it was not his job to do that....but he did, and now this
> gentleman who lent us the house is demanding a cut of our profits for the
> life of the loan.  Is what the loan officer did illegal or just unethical?
> Does anyone have any thoughts at all on the topic. thanks

By putting up this property, this person effectively has co-signed
the loan.  As a signatory to the loan, he is entitled to know every
last detail, and every last crossed-t and dotted-i.  And since he
had the make or break item in the deal, he should be getting his
fair share of the profits.

If anyone should be having any thoughts on this topic, it should
be you.  You were going put this guy in great risk, and then try
to screw him out of any of the upside rewards of the deal.  Not
only is that a poor way to run a railroad, it is a good way to get
yourself strung up in a tree by your gonads.

-john-
"You were going put this guy in great risk".  John, I never asked this guy
for a cent.  His daughter, having no collateral, simply asked her father to
put it up for her.  I can't help if myself and other partner have the
necessary assets to get the job done and she doesn't, but that's not an
issue as she is a third partner in our corp and we want her there.  This was
simply the easiest way to get it done, and he brought the whole idea up.  He
is also, NOT a co-signer on the loan as his signature appears no where.
And, since I asked our loan officer numerous times if he would not disclose
the terms of our loan to this gentlemen and he told me that he actually
could not without his permission, what does that tell you.  This "guy" fully
understand the ramifications of putting his house up and I have coerced him
in no way.  I think he's simply doing this for his daughter, and in my
opinion, if he thought is was a bad idea, he's a grown man and shouldn't
have done it.  So save your condenseding comments. If you wanted to know
more about the situation, you could have asked.  And as far as your gonads..
you can keep em.
Scott


======================================= MODERATOR'S COMMENT: 
 Please desist with the colorful language.