Survival

From: XXXX
Sent: Wednesday, June 25, 2008 4:13 PM
To: Elvis
Subject: Outstanding Balance
Elvis,

Thanks for the time on the phone.

As we discussed, XXXX Homes currently has an outstanding balance with XXXX of ~$3,600. XXXX would be willing to take $2,400 (discount of ~33%) provided we can get a check in hand by 6/30 (our fiscal year end). We are not pushing for this but want to create a win-win solution. If that does not work, we would request a payment plan of a small amount just to keep the account moving – maybe $100 a month… until you are able to sell off some of the homes with our products and improve your cash flow.

We want to be a partner with you in this challenging market – be part of the solution not part of the problem.

Also, I would be happy to participate in any group you put together focused at surviving this market!

Thanks,
XXXXX, XXX
Vice President

From: Elvis
Sent: Thursday, June 26, 2008 4:41 AM
To: XXXX
Subject: SURVIVAL

I see you are being as helpful as possible and appreciate every bit of that.
Sorry for the hassle, We are bailing water as fast as we can to stay afloat.
We are seeing a bit of light but it is going to take a lot of work to evade the same fate as some of our brother builders out there.
Some of the things we do to survive are not fun to talk about as it becomes more evident we are out of cash.
100$ per month is something we can handle if you can allow it to start 8-1.
We have some HUGE fires to stamp out between now and July.

How about we ask if we can pay off in the next 12 months you honor the 2400$ deal.
If we can pay it off in the next 6 months we do 2k total balance?
My guess is that we are going to find a home to stick that balance to that the banks don’t take all of the cash on.
This is hard right now as most of them are in FORCLOSURE!!!
We have reduced our debt from 50m to 20m in 7 mos. We have 4-6 more months to go to be free.I hate using the F word…

If this is acceptable, let’s make a soft note, we can’t sign personally but will honor the terms above.
We too want to survive this market.
We are taking on the responsibility and honor of assisting some of our fellow builders cut the cancer of their inventory off of their backs.
A rather surgical operation, no money comes from it, but the very thing that is killing us is the inventory.
Once that is gone, the interest stops, liens are satisfied even if they are negotiated down, they are healing.
Banks get some cash back for reserves, and the more they get back the more they will have to lend to the builders that get set free before it is too late.
Our system is a simple one. SURVIVE through letting go of the debt.
This will take the same attitude from subs, banks, and builders will have to let go of all of that profit that is not there today.

We have not poured a foundation since OCT.
We stopped living on draw money and started healing the flesh wounds.
That said, a builder that does not build and that sells homes at less than what he owes, and that has no cash reserves is fairly close to extinction.
We have nothing left to loose, we have no dignity left (crud) and we are fighting harder than 90% of the builders out there.
We solve our problems by being proactive.

Please, if there are any other builders you know that are struggling, we can help.
We know investors.
We know professional negotiators that get the prices the investors want.
We know the agents that get the deals closed.
We know the surgeons and vultures that will clean this mess up so we can get inventory under control and get people back to work.
We are creating a market within a market.

My cell is XXX-XXXX.
Talk to your builders.
Call me.
I will talk to anyone about pain and suffering…