Chapter 19: The Foolish Python Swallows Only Half a Pig
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It had been a year since Ray and I said goodbye in San Francisco, and now I was about to go into business with a new partner, Jack Wilson. I drove to Jack’s office and parked next to his red Jag. As I entered the building, Al, my eventual Dudley Do Right attorney, was leaving. He reached out and gave me a firm handshake. Al was off to court, and in a suit and tie he looked even bigger and more intimidating. I told him I was going into business with Jack and that I might need his advice. “Glad to help,” said Al. Then I asked him if agreements had to be typed out or could they be hand written. His reply, “That’s fine as long as you can read ‘em, and they meet the requirements of a legally binding agreement.”
The main office was deserted and the door to Jack’s office was open. I walked in and sat on the edge of what might be my desk. Jack looked up from his crossword puzzle. I got right to the point.
“Jack, I want to do business with you, but not as your employee. You said you wanted to think of me as your partner, but if we’re really going to be partners I need something in writing. It doesn’t have to be full of legalese, but we have to spell out who does what and how we’re paid. Any suggestions?”
The question seemed to catch him off guard. Given my abrupt exit from Mr. Gucci's office in Beverly Hills, perhaps Jack thought I’d just pick up my sunglasses and bail. I had no idea what conversation transpired between Jack and Mr. Gucci after I left his swanky office, but you could assume Mr. Gucci hoped he’d seen the last of me. I didn’t care what had transpired then, because that was water under the bridge. This was a new river.
Naturally, Jack’s first concern was money. “Well,” Jack said, “if we’re gong to be partners we have to split all the expenses 50/50 and that includes what I put up to get the marketing agreement.” “Fair enough. How much was it,” I asked. Jack thought for a long moment and said, “Fifty Thousand dollars.” His hesitation led me to believe it was a made up number he just threw out to see if I’d take the bait.
Fact was, I didn't care. As I said earlier, the only thing Jack brought to the table was the fact that he had the marketing agreement and I didn't. I considered twenty five grand a reasonable buy-in and it leveled the playing field. Jack, seeing how quickly I accepted his first offer added, “And since we’re partners it’s only fair you pay half of Levin’s attorney bill. “How much was it,” I asked. Jack said, this time without hesitation, “Five hundred bucks.”
Obviously, Gucci didn't get five hundred bucks an hour back in 1979. He’d no doubt racked up time laying my trap and consulting with Jack. I asked, “Have you already paid him?” “Not yet,” said Jack.
I whipped out my checkbook and said,“Ok, here’s a check for 250 and I’ll make it out to Marty Levine, Esq.” I made out the check and in the notation line I wrote, “Legal consultation” and the date of the Beverly Hills meeting. I handed Jack the check. Without thinking and quite unintentionally I had just dealt a death blow to Levine. A blow that would one day literally be administered by Al Pitman, AKA Dudley Do Right.
The Closer was in Python mode and he had the Pig in his grasp. Jack was delighted that he was getting twenty-five grand and splitting the attorney bill cinched the deal. My entry fee was peanuts compared to the potential profits from Tahoe Village, so I wanted to swallow the Pig here and now. No typewriter in Jack’s office and Zoe, the office manager/secretary, was nowhere in sight. Attorney Al Pitman was in court so it was just me and Jack. How do I close this deal in writing?
I said to Jack, “So there’s no confusion about what we’re doing, let me jot down a simple agreement stating that I agree to pay half the money you put up for the marking contract plus the 250 for half of Levine’s bill. In return you agree that we are 50/50 partners in selling Tahoe Village and we’ll split all expenses going forward 50/50. Tomorrow we can hammer out the who does what stuff.”
Then I wrote out a check payable to Jack for twenty five grand with the notation, Tahoe Village Partnership fee. Jack was salivating. I had my small AT A GLANCE Pocket calendar in a leather case which also had a sleeve for 3X5 note cards. It only took two minutes to write out the agreement. I dated the top of the card and drew a line for our signatures. Still holding onto the check, I signed and dated the notecard and handed the pen to Jack.
Jack desperately wanted the check for 25 grand. But he hesitated. “I need to think this over. And I probably should run it by Levine.” I pressed for the close. I folded up the check and tucked it in my shirt pocket. I said, “What’s to think over? You said you wanted me to be your partner and that you wanted me to pay for half the marketing fee and half Levine’s bill. You said we’d split expenses going forward 50/50. I’ve agreed in writing to everything you wanted.”
Jack took the card in his hand and read it carefully. The Python tightened his grip. I said, “Look Jack, this is gonna be a hell of a lot of work and I’m probably gonna be doing most of it because I already know how to pull off a Timeshare and you don’t. I already know now to put together a sales force and I have all the contacts at the Department of Real Estate.”
These were inarguable facts and Jack nodded in agreement. I said, “We don’t need to waste more money on Levine. You can run it by him if you want, but I ain’t paying half the bill. It’s a simple, straightforward agreement and you got everything you asked for. If you want to go it alone and put up all the money, I need to know now. I’ll tear up the check for 25 grand, but I’ll still pay half Levine’s fee. Frankly, I’d rather be talking to my travel agent and planning another trip. We’re burning daylight. I’m in or I’m out.”
Fear, greed, and indecision were reflected on Jack’s face. It was painful to watch his contortions, but the Python hadn’t eaten in a year. I took the check back out of my pocket and slid it and the agreement to Jack. I handed him the pen. It was now or never and Jack knew I was serious. I reached for my sunglasses. As I was picking them up off the desk, Jack signed the note card.
I shook Jack’s hand and said, “I’ll go make you a copy. Then let’s go to Bully's and celebrate. We have a lot of work to do and I want to go up to Tahoe right way. I need to meet Billy Fink, the general partner. He needs to know we’re partners and I have to inspect the units. Then we need to go to Sacramento and talk with the Timeshare division.”
I bought Jack lunch but I didn’t eat. As Jack was sipping a martini I pulled out another 3X5 note card and started making a list of all the things we had do.
Meet with Billy Fink. Agree on a sales price for the Timeshares. Agree on a what commission we’d pay the sales people. Inspect the condos. Hire an on-site manager for the home owners association. Find a Nevada escrow company. Meet with the California Department of Real Estate. Create marketing materials for the sales force. Develop ads for newspapers. Develop a written sales pitch for the salesmen to memorize. Install a toll free line at the condos and at the San Diego office. Hire sales people and transfer their licenses to my broker’s license. Sign up real estate offices.
I slid the notecard to Jack. He stared at the list. This was the first time he was forced to come to grips with the enormity of the tasks ahead. “When do we start?” asked Jack. I said, “We fly to Tahoe tomorrow morning. I’ll call the Department of Real Estate and schedule a meeting for day after tomorrow. While we’re in Tahoe we need to put an ad in the paper to get a manager of the home owners association. It has to be someone who lives in Tahoe. Except for hiring and training salespeople, we need all this done in thirty days. Jack was clearly overwhelmed. He studied the note card again and realized there really wasn't much on the list he knew how to do.
I was only 36 and had A LOT to learn. I was totally confident as a Closer, but still too insecure to go it alone on another Timeshare. I already knew Jack brought nothing to the table, and I’d soon realize he had baggage as well. In fact, fear, greed and indecision would become Jack’s trademark throughout the deal and a constant source of frustration for me.
My youthful eyes were unable to see that I had all the pieces I needed to do this deal on my own. It was the perfect time and the perfect Timeshare for me to break out and go from Timeshare salesman to Timeshare developer. Instead of just swallowing Jack, the Python should have swallowed the entire deal. I would eventually be forced to correct my mistake and become both salesman AND Developer. I’ll have no choice but to roll the dice with everything I own on the table.
As soon as we got back to the office I straightened the picture over my desk.
Next I called Pacific Southwest Airlines and made a reservation for two to Reno. Then I called and got an appointment to meet the Department of Real estate bureaucrat overseeing Tahoe Village. When we arrive at Tahoe Village I’ll be greeted with some good news and some really bad news.
The good news will be that the condos are nicer than I expected.
The bad news will be Billy Fink, the general partner. I quickly surmised he was a con man, and late in the game I will learn he has a secret partner in crime.