Before the real estate market truly turned dour, most of SUN's Tic's were underperforming and bleeding $$. For a while, a lot this was obscured by CUSA's constant excuses when owners complained or sensed what was coming. CUSA wanted to just keep taking the $ and they did. They knew what was happening.
CUSA eventually blamed SUN1031 for obtaining (overall) poor properties and SUN1031 blamed CUSA for poor management.
You know where owners ended up.
There was also the 'claims' that SUN1031 did some manipulation of paying some distributions in the beginning of a property's payouts to further hide the facts that a property was going to have trouble.
One of the most perplexing issues is how SUN1031 could not do better for their investors as this was coming to pass. It created ill will among a lot of people who talk to other people across the nation.
Sun's investors have not only lost confidence AND respect for SUN1031, they feel they've been defrauded.
As business owners, how could SUN1031 NOT issue damage control and try to help. They are either complete frauds or inept. When a company would sit by and not help their "customers" is bizarre business behavior.
Oh yeah, they have to "remain neutral". Ever hear that from SUN1031?
How many people would now recommend SUN1031 to anyone?! Thus, they will have to continue to obtain new clients who don't know their history. That's one of the hardest ways to run a business – to discard current customers. Unless you've made so much from those first customers they simply don't care.
SUN1031 sure wasn't neutral making a ton of money on investors' backs, selling properties at inflated prices with dubious 'pro rata', disclosures.
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Hello Sun TIC Owners and Steering Committee Leaders:
ReplyDeleteWe have so many owners with multiple Sun 1031 properties that what happens to one may affect the other properties...We need to communicate what is going on with our properties. I wish all the TIC Steering Committee chairs would keep other TIC leaders updated about what is going on with each property. Instead of using this blog site to let off steam, let's pool our mental resources to benefit us all.
1/10/10 Here is an update on two:
Toben Carinos (Wichita) has moved from CUSA to a local PM in Wichita. We found him indirectly through the business editor of the Wichita Times. Our restaurant was in dire need of repairs (roof leaks, roof tile damage, need for flashing, parking lot drainage, etc.). These hadn't been handled since the purchase in 07. We now have a good plan for getting repairs done. Sun 1031 came through on the MOU agreement for repairs. We still have regular 50% distributions of the original CAP rate.
We are currently working on revising our original TIC agreement to reflect the removal of CUSA, creating a steering committee rather than POA for getting things done on everything except what has to have unanimous consent of the owners.
Palm Harbor Gibraltar (Tampa) This property has had a 30% vacancy for almost two years and two dead-beat tenants that took 6 months to remove. This and a bad economy resulted in losing serious money for the TIC.
We have moved from CUSA to a local PM who has done a good job in keeping remaining tenants paying and happy, taking care of poorly maintained elevator and air conditioner, and reducing operating expenses as much as possible. PHG had a cash call to pay taxes in 09 and unless we get tenants soon, will have another one in 10. We have had no distributions for about 1.5 years...
Question: Does any other property have a non-recourse loan with Flagstar? Have you had any success in re-negotiating any aspect of the loan?
"TC/PHG" (user name)
don't know HOW we can all get together if there's no way to contact u via YOUR post?!!
ReplyDeletefeel free to reach me @
ReplyDeletephila8736@yahoo.com