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. Kit Menkin’s Leasing News www.leasingnews.org Thursday, April 4, 2002 Accurate, fair and unbiased news for the equipment Leasing Industry Headlines---- New Century Bank, Michigan---Bancorp Group Lease Portfolio MAEL Conference Deadline Extended Former PinnLease President To Respond to $6.7 Million Charge Houston lands JP Morgan's investment bank technology center Carl E. Myrick – North West Regional Sales Manager Donald Paynter to Head Commodore Funding Corp. The List is Up-Dated #### Denotes Press Release -------------------------------------------------------------------------------------------------------- Meet the Leasing News Maker---Monday, 11am, California Daylight Savings Time The first leasing co-op: Friday will we make available “F.A.Q” in PDF format. Live Monday: you will be able to ask questions directly to the two major founders. While readers have written, “ He has the gold, makes the rules.” This is medieval thinking. The marketplace has always made the rules. Employers don’t make the rules, they follow them, as by city, county, state, and federal guidelines. And beyond that, if a key employee wants to start coming in at 10am because they have a duty for their family to perform, you either say “yes,” or they most likely will move on. So who makes the rules here? The marketplace. When agricultural and other co-ops started, the buyers said it would not work. Now it is a way of life. Yes, there are many hurdles to overcome, but before you make up your mind, before you start your negative thinking and “know it all attitude,” join us Monday at 11am, Pacific Daylight Savings Time ( the clock gets “Spring ahead” on Sunday) at www.leasingnews.org/newsmaker.htm Live “Chat Forum” www.leasingneews.org/newsmaker.htm ---------------------------------------------------------------------------------------------------- New Century Bank, Michigan---Bancorp Group Lease Portfolio I was approached by the founders of New Century Bank, and was "offered a seat on the board of directors for a mere $250,000 stock purchase". I forwarded the information on the stock/bank to one of my attorneys who advised me, "I would need to seek mental help" if I invested in it. So I politely declined. Why don't more people seek the advice of professionals (the attorney not the shrink) prior to making such big investments? I am lucky enough to have $250,000 to invest, how in the world do these others who invest that kind of money keep their money? Is it just me, or am I in a minority? Please withhold my name MAEL Conference Deadline Extended The hotel reservation deadline for the 2002 Association for Governmental Leasing & Finance Spring Conference (May 1-3 in Baltimore, MD) has been extended to April 9, 2002. Please make sure to call the Baltimore Renaissance Harborplace Hotel at 410.547.1200 and make your reservation prior to this cut-off date for our room block to avoid any inconvenience. Registration materials are available online at http://www.aglf.org/events.html - please paste this link on your web browser and download the conference registration. Sponsorship opportunities are still available - please call AGL&F Headquarters or fill out the Sponsorship Commitment form available as a download at the above link. The deadline to register with the AGL&F for the conference is April 15. Make sure to register prior to that date to receive the discounted Early Bird attendee rate. A $150 savings.. Please feel free to contact AGL&F headquarters at 202.742.2453 if you have any questions or need conference registration materials faxed to you. We look forward to seeing you in May in Baltimore! -- Graham Hauck Executive Director Association for Governmental Leasing and Finance 1255 23rd Street, NW Washington, DC 20037 202.742.AGLF (2453) fax: 202.833.3636 email: gsh@aglf.org ( The conference is open to members, potential members, and non-members. Here is an excellent opportunity to enter or learn more about municipal and other governmental leasing, which is becoming more and more popular, due primarily to the economy ). Former President of PinnLease To Respond to $6.7 Million Charge Tommy Larsen will have a statement from his attorney for the Friday edition, we are told, along with the legal response to the PinnFund Bankruptcy receiver. He was president of PinnFund Leasing, a subsidiary of PinnFund Mortgage, specialist in sub-standard credit and other such mortgage situations. Leasing News has stated “ Assume he is innocent, until proven guilty.” Any relationship between “CopyFax” and PinnFund Leasing is not illegal, and all along Larsen has stated he was the prior owner, joined PinnFund and then sold to his children, and the company not only provided faxes and copiers for PinnFund, but PinnFund did all their leasing. This information was broadcast, and still is today, on their website: http://www.cfimaging.com/about/index.html Other items in the charges made against him, hopefully will be addressed, as well as the CopyFax claims. ------------------------------------------------------------------------------------ From: "MICHAELS,ROB rob_michaels@hsgmed.com In yesterday's Leasing News you had the following example: ************************************************************************ **** ******************* "For example, if you do a $5K deal for 48 months and it costs $6.00 per month to send out the statement and process the check. This will eat up $288.00 of the profit in the deal. "If a lender that is in good financial shape has a cost of fund of 5.25% and they give the broker a "buy rate" of 11.25%, they have a 600 basis point spread. If the broker adds 10% commission the total yield is 18.25%. "If you discount the payment stream (no advances for simplicity sake) the total GP in the deal is approximately $1150.00. The broker will be paid $500 of than (10%). That leaves $650.00 for the funder to process, book, bill and collect the transaction. Above we determined that the manual billing alone would cost$288. This leaves $362.00." ************************************************************************ **** ******************** I cannot get your "total yield is 18.25%" or "total GP is $1150". I get the following: If PV = $5500 ($5000 + $500 commission) I% = 11.25% N = 48 FV = 0 Solve for PMT = $142.82 Now, using that PMT but changing PV = $5000 solve for I% = 16.43% (aka retail yield) For the GP, change I% = 5.25% solve for PV = $6171.23 so GP = $671.23 ($6171.23 - $5500) Am I mistaken or is your example wrong? Thanks for clarifying, Rob Michaels Healthcare Financial Services Philips Medical Systems 3000 Minuteman Road, MS 0370 Andover, MA 01810 Phone: 978.659.2357 Fax: 978.794.9162 Email: rob_michaels@hsgmed.com ---------------------------------------------------------------------------------- Bob Rodi President LeaseNOW, Inc. drlease@leasenow.com www.leasenow.com 1-800-321-LEAS (5327)x 101 Kit, Mr. Michaels is correct. When I wrote that, however, I did not calculate the numbers on my 19BII, I merely estimated. The point was not the yield in the deal but to illustrate that the GP can quickly be eaten up by the cost of booking and servicing a deal that size and that some adjustments have to be made to compensate for the costs of manually managing a deal of that size. Please broadcast my apologies to any and all who inquire. Thank you, Bob Rodi ------------------------ 135 Changes
The List Up-Dated ( also now on line in both Chronological
and Alphabetical order: http://www.leasingnews.org/list.htm Fisher-Anderson Commercial Money Center, Southern California—(3/2002)
Throws in the towell, 128 employees out of work, Dir. of Marketing Bill Hanson
not paid, goes back to work for himself, bringing Gil Evans and his son Ty
with him. closes door, leaving many unpaid bills and questions,
especially about Kiosk leasing.-(2/2002) Returns $1.2 Million to Date admit
many complaints by applicants, vendors, and brokers. Fails to secure insurance
line of credit after
September 11th
/2002) Bob Fisher Resigns to form Firerock Capital; Scott Anderson stays behind to wind down portfolio; company
was sold to MarCap,
Fisher reveals;
MarCap reportedly having problems with many of its leasing portfolio’s and wants to get out of small ticket
marketplace.(8/2001) Many sales people let go the last few months, company cuts back, Don Shadel, former Commercial Vehicle Division
Manager of Fisher Anderson L C,
and several CVD staff members, have started a new company named Mark III
Credit Corp. The focus will continue to be new and used work oriented vehicles in the small ticket range from $15,000
to $150,000. Our prior company, Atlas Funding Group,
Inc. was acquired by Fisher Anderson L C in
September of 1998 to market a national titled vehicle program for brokers and lessors. Our affiliation
with Fisher Anderson L C the last three years
has been a pleasant experience, however recent changes in the transportation
industry dictated that we both move in different directions." dshadel@markiiicredit.com BancParnters/First Commerce
Leasing (3/2002) Lahit makes it official
resigns, and opens up Affiliated Corporate Services again. Houston lands JP Morgan's investment bank technology center By Mark Babineck, Associated Press HOUSTON (AP) J.P. Morgan Chase & Co. will consolidate its investment bank technology center in Houston, moving responsibilities from New York and London. The move is expected to create 250 new jobs in the city, Texas' biggest. Frank Lipkin, chief technology officer for location management at J.P. Morgan's investment bank, said Wednesday that Houston offered the right mix of cosmopolitan appeal and a low cost of doing business. He said that the diverse nature of the Houston area gave it an edge over three other finalists for the company's North American Technology Center: Dallas, Tampa, Fla. and Wilmington, Del. If the investment bank finds success with its new Houston office, which should open in a midrise downtown building by June and have 75 employees by the end of 2001, Lipkin said the operation likely would expand. The technology center will support the investment bank's sales, trading and analytics operations for markets and businesses worldwide, he said, citing NASA, the energy trading sector and the Texas Medical Center as examples of the city's technological base. J.P. Morgan Chase is no stranger to Texas, employing about 14,000 people across the state and around 7,000 in Houston, where it also is the namesake to the state's tallest building. Lipkin said the new jobs should pay in the six-figure range. Most of the jobs will be new hires in Houston, Lipkin said. About 130 to 150 New York workers will be redeployed or laid off, with a smaller number of job changes or reductions in London. Alan Buckwalter, who happens to be chairman of both the Central Houston Inc. downtown development group and J.P. Morgan Chase's southwest region, applauded his company's new commitment to Houston. ''Companies go where the highly skilled people are, and that's why the North American Technology Center is coming to Houston,'' he said. But Lipkin said the company wouldn't even consider such a move if not for the high cost of doing business in such financial centers as New York, London and Tokyo. J.P. Morgan Chase also is trying to decentralize some of its operations, he said. (Eat at Mark’s) #### ######################### ############ Carl E. Myrick – North West Regional Sales Manager
Vision Financial
Group is pleased to announce that Carl Myrick has now joined the company
as the newest Regional Sales Manager. Carl brings over 24 years of
leasing and finance operations experience to Vision Financial Group
having begun his financing career in 1977 with Safeco Credit in Seattle,
WA. In 1981 he joined Manufacturers Hanover Leasing
Corporation and subsequently joined MetLife Capital in 1984 where
he served in various credit operations positions developing and leading
MetLife Capital into one of the country’s premier full service
equipment and real estate leasing and finance organizations. In 1998, Carl joined Bank One’s Leasing
organization and ran the Third Party Intermediary and Vendor credit
programs as the Vice President/Credit Manager. Bank One’s Leasing
organization was subject to the Bank’s reorganization strategy,
and as such, the Vendor operations were discontinued and the portfolio
sold. Carl was most recently employed at GE Colonial Pacific Leasing
as the Commercial Operations Manager in the development of their small
ticket lease operation in Portland, OR. Carl has a B.S. in Finance
from the University of Oregon and an MBA from California State University
– Fullerton. Vision
Financial Group, headquartered in Pittsburgh, PA is an eleven-year-old
independent equipment leasing company meeting the needs of both Equipment
Vendors and End users nationwide. Vision's Residual and Finance lease
products enable it to accommodate Lease financing for both lower and
middle market companies as well as many companies listed among the
Fortune 500. (
courtesy ELAonline.com ) ##### ######################################################## Donald Paynter to Head Commodore Funding Corp.
Commodore
Funding Corp has recently appointed Donald Paynter as its CEO and
Managing Director. The Company is engaged
in structuring and arranging funding for intermodal (maritime) containers
and used aircraft as well as cross-border tax leases in countries
such as Denmark and Ireland, the latter on a defeased basis. Prior to this assignment,
Mr. Paynter was the Managing Director for Commodore Capital and before
that held senior executive positions with major financial institutions
in the US and abroad, directing equipment finance operations. Mr.
Paynter has chaired the Leasing Association's Global Panel for years,
and is a frequent speaker and author of articles on international
equipment finance. For
further information, the Company can be contacted at 212-750-4600
(fax: 212-750-4604) and is located at 575 Lexington Ave., 20th floor.
His e-mail address is dpaynter01@sprynet.com.
(
courtesy of ELAonline.com ) #### ################################### www.leasingnews.org |