As some Tenant in Common owners are learning (myself included), the latest affront to owners is keeping your property(s) afloat. Also, there are now sharks circling distressed properties in the continued downtrend in commercial real estate – specifically TIC's.
A couple of reasons are they can buy the properties at deep discounts, and in a few years (or sooner) have income generating commercial real estate. The current "predictions" from experts are at least another 5-8 year wait from today for any possible return to fruition. This is if you bought in or around 2005-07.
Some of the companies doing the circling of foreclosed or soon to be foreclosed TIC's / commercial real estate are the very same people who sold thousands of us a bill of goods. They may come at us under a different moniker.
I know I personally would NOT trust the people who sold me my TIC's. The "guarantee's" they proffered weren't worth anything. The management they had in place robbed from owners, etc.
How about DBSI or FOR1031's guarantees? They simply went bankrupt and caused a huge financial burden to owners. Owners were at the mercy of the courts and LAWYERS.
In Sun1031's case they mostly bought property and flipped them. Many times they took out loans against the properties & any distributions paid were simply earlier equity from the property and not truly 'income distributions'.
The promised monthly distributions of our TIC have mostly stopped for owners. If you have a mortgage you know how tough it is to meet that obligation with the weak lease rates and vacancies.
Many properties in the TIC market are missing payments hoping for a loan modification.
Though it is possible to do this, as people have found out with residential real estate it's close to impossible to do. It's also a difficult work out with the banks.
In addition, much of the "forgiven debt" is simply added on to the back end of the loan eating up any future equity.
Be aware of anyone offering to "help your property". These are wolves in sheep's clothing. There are big companies in the TIC industry ready to pounce on our properties and leave you with nothing.
If you find yourself in that position, there's suppose to be a new company forming that will truly help distressed TIC's. I don't have details of any structures, but they hope to save people from losing all of their property(s).
The word is that the new company doesn't want to see TIC owners lose their entire investment(s) from any of the TIC's, regardless of the sponsor.
As soon as I have any more information I will pass it along. That's all i know. Hopefully the information will help some owners. If you can stave off foreclosure and hang in there until the future uptick, you still may see a return on your investment. Even if we got our initial investment back would be a win.
Let's hope for the best in these continued tough times.
Sunday, October 24, 2010
Sunday, August 22, 2010
Home Loan Modifications, some helpful info...
Since these "investments" from SUN1031 have NOT panned out as SUN stated, MANY of us have been harmed financially.
i'd like to point out some good info & reading regarding Home Loan Modifications that i saw on a segment on MSNBC.
I know of fellow owners, including myself, that have had to do this because of the poor returns from SUN 1031 properties. I've not secured a modification yet from Bank of America, but am still trying – since summer 2008.
here's a link to read others' stories so you know you're not alone...
http://www.propublica.org
or
http://www.propublica.org/ion/loan-modifications
CLEARPOINT CREDIT COUNSELING... has helped some people at NO COST, but I HAVE NOT SPOKEN NOR ENDORSE THEM.
i HOPE this info may help someone in need regarding a mortgage modification, short sale, moral support, etc.
good luck to all of us,
"disgruntled"
i'd like to point out some good info & reading regarding Home Loan Modifications that i saw on a segment on MSNBC.
I know of fellow owners, including myself, that have had to do this because of the poor returns from SUN 1031 properties. I've not secured a modification yet from Bank of America, but am still trying – since summer 2008.
here's a link to read others' stories so you know you're not alone...
http://www.propublica.org
or
http://www.propublica.org/ion/loan-modifications
CLEARPOINT CREDIT COUNSELING... has helped some people at NO COST, but I HAVE NOT SPOKEN NOR ENDORSE THEM.
i HOPE this info may help someone in need regarding a mortgage modification, short sale, moral support, etc.
good luck to all of us,
"disgruntled"
Friday, April 16, 2010
Goldman Sachs 'fraud' & a Parallel to SUN 1031?
Regarding today's announcement of civil charges against Goldman Sachs via the Security and Exchange Commission (SEC). Though civil charges at the moment, criminal charges may be following.
The two statements from the SEC that's of interest for us:
"defrauding investors by misstating and omitting key facts about a financial product ..."
and...
"defrauding investors by failing to disclose conflicts of interest".
something to think about, wouldn't you say?
The two statements from the SEC that's of interest for us:
"defrauding investors by misstating and omitting key facts about a financial product ..."
and...
"defrauding investors by failing to disclose conflicts of interest".
something to think about, wouldn't you say?
Tuesday, March 23, 2010
The Broker who Sold you this Junk
If you have NOT complained to any authorities re: Sun1031 OR the Broker who sold you this Junk, complain to your state attorney general, AZ attorney general, Federal Attorney General, the SEC and REISA (http://www.reisa.org).
REISA used to be TICA (Tenants in Common Assoc.). tho it MAY not do much good, spreading your unhappiness can't hurt.
their "mission" is...
Funny, my broker belongs to this group, BUT SUN1031 does NOT.
in fact, i can't find ONE GROUP in which SUN1031 is/was affiliated.
I love Sun1031's website in which they STILL espouse the same nonsense they always have.
Taking a minute to complain may help others from our same sorry fate AND may stop the $ flow to these crooks.
ALSO, the Broker should have E&O insurance (errors & omissions) that you may be able sue against.
REISA used to be TICA (Tenants in Common Assoc.). tho it MAY not do much good, spreading your unhappiness can't hurt.
their "mission" is...
The Real Estate Investment Securities Association (REISA) is a national trade association serving professionals who offer and distribute all forms of real estate investment securities. Established in 2003, REISA promotes the highest ethical standards to its members as well as provides education and information to the entire real estate securities community.
REISA members include: registered representatives, registered investment advisors (RIAs), broker-dealers, sponsors, qualified intermediaries, lenders, attorneys, CPAs, mortgage brokers, consultants and other affiliated professionals.
in fact, i can't find ONE GROUP in which SUN1031 is/was affiliated.
I love Sun1031's website in which they STILL espouse the same nonsense they always have.
Taking a minute to complain may help others from our same sorry fate AND may stop the $ flow to these crooks.
ALSO, the Broker should have E&O insurance (errors & omissions) that you may be able sue against.
Sunday, March 14, 2010
Rock & a Hard Place >Keep some of these things in mind re: lawsuits, taxes, etc.
As more and more information comes to light re: TIC investments, ESPECIALLY those thru SUN1031 of Arizona, there are a few things i've been hearing from owners on which i'll expound.
#1) SOME Property Managers who have their own "construction departments" are looking to increase their cash flow. This is because their fee structure may be down due to lost tenants and the economy. (i won't go into the entire set up of these TIC's & how expensive they were which contributes to this problem.)
Getting back to PM's cash flow. A property manager may start looking to maximize their cash flow by looking to "make repairs to make the (vacant) property show better". tho this can be true to a point, still make sure to get 'outside' bids VS your PM's if you're allowed via your contract.
Also, during this crucial and long downturn, it's important to keep costs as low as possible. so i'd advise against any repairs but those of dire need.
#2) Try not to allow ONE OWNER to deal with your PM or leasing agent. Two to three owners to offset the thinking process will usually yield better results.
#3) As most of us know, SUN1031 has been and IS being investigated in many ways regarding these investments. These instruments had about zero regulatory oversight, YET strict IRS rules.
This has created a bit of a monster on a few fronts.
• If you prove that these TIC's are a rip-off you just may end up with owing your original capital gains tax to the IRS, PLUS still have a poor investment on your hands.
• There's also attorney fees, etc. Attorney's have been requesting anywhere from $3,500 to $15,000 just to review one of these cases. As in the DBSI case, the people who really made out, besides the swindlers were the attorney's. (but ambiguous contracts can tend to side with the Buyer.)
• FINRA is NO HELP as it's a self policing agency. SUN1031 didn't belong to FINRA thus they have no jurisdiction. That was another red flag in which we've now all learned. SUN1031 belonged to NO business or financial GROUPS of any kind–not even the Tenants in Common Assoc.!
• It IS good to report your story to the Attorney Generals, but again they are mostly of no help. This is partially due to any new TIC business is now just a trickle, if any. The poor business model has cut off it's own head... and ours.
SO, many of us are trying to manage the properties the best we can by cutting costs to the bone & hoping for an economic upswing. We are stuck between many rocks.
The ONLY positive I can find is that they are physical buildings, etc. not 'worthless' like a Bernie Madoff or penny stock.
Albeit, most of the property values have sunk at least 50%. And trying to lower the taxes & get tenants has proved hard. Also, lease prices also have been hit by at least 50%. Thus, most owners are receiving ZERO monthly distributions.
Another thing sticks in my craw. Remember how this were "hands off" investments, etc. Well, we all know how that turned out.
Owners have put in a ton of uncompensated time & any improvements made to the business model of your property has (AGAIN!) benefited SUN1031 at no cost to them as they've sat & done nothing but gained huge profits on our hard earned monies.
If i were SUN1031 I'd be afraid to sleep at night and I'd be looking over my shoulder at every turn.
#1) SOME Property Managers who have their own "construction departments" are looking to increase their cash flow. This is because their fee structure may be down due to lost tenants and the economy. (i won't go into the entire set up of these TIC's & how expensive they were which contributes to this problem.)
Getting back to PM's cash flow. A property manager may start looking to maximize their cash flow by looking to "make repairs to make the (vacant) property show better". tho this can be true to a point, still make sure to get 'outside' bids VS your PM's if you're allowed via your contract.
Also, during this crucial and long downturn, it's important to keep costs as low as possible. so i'd advise against any repairs but those of dire need.
#2) Try not to allow ONE OWNER to deal with your PM or leasing agent. Two to three owners to offset the thinking process will usually yield better results.
#3) As most of us know, SUN1031 has been and IS being investigated in many ways regarding these investments. These instruments had about zero regulatory oversight, YET strict IRS rules.
This has created a bit of a monster on a few fronts.
• If you prove that these TIC's are a rip-off you just may end up with owing your original capital gains tax to the IRS, PLUS still have a poor investment on your hands.
• There's also attorney fees, etc. Attorney's have been requesting anywhere from $3,500 to $15,000 just to review one of these cases. As in the DBSI case, the people who really made out, besides the swindlers were the attorney's. (but ambiguous contracts can tend to side with the Buyer.)
• FINRA is NO HELP as it's a self policing agency. SUN1031 didn't belong to FINRA thus they have no jurisdiction. That was another red flag in which we've now all learned. SUN1031 belonged to NO business or financial GROUPS of any kind–not even the Tenants in Common Assoc.!
• It IS good to report your story to the Attorney Generals, but again they are mostly of no help. This is partially due to any new TIC business is now just a trickle, if any. The poor business model has cut off it's own head... and ours.
SO, many of us are trying to manage the properties the best we can by cutting costs to the bone & hoping for an economic upswing. We are stuck between many rocks.
The ONLY positive I can find is that they are physical buildings, etc. not 'worthless' like a Bernie Madoff or penny stock.
Albeit, most of the property values have sunk at least 50%. And trying to lower the taxes & get tenants has proved hard. Also, lease prices also have been hit by at least 50%. Thus, most owners are receiving ZERO monthly distributions.
Another thing sticks in my craw. Remember how this were "hands off" investments, etc. Well, we all know how that turned out.
Owners have put in a ton of uncompensated time & any improvements made to the business model of your property has (AGAIN!) benefited SUN1031 at no cost to them as they've sat & done nothing but gained huge profits on our hard earned monies.
If i were SUN1031 I'd be afraid to sleep at night and I'd be looking over my shoulder at every turn.
Monday, January 11, 2010
New Year, more problems, HIGH TAXES!
Hopefully this year brings us better results re: our Sun1031 "investments". we all know that's hopeful thinking, but thought i'd say it anyway.
One thing our owner groups are finding out the hard way, is that since we ALL overpaid SUN1031 for property due to their many misdeeds, that we are paying high property taxes. This has driven NNN tenants away to lower cost centers. this has also has prevented any new leasing in many of the properties.
You really find this out when the tenants leave and owners are left paying their own CAM!
Once a County/City/State get their tax hook in you, they are loathe to lower their rates, etc. the valuations are typically done when a sale occurs.
We have appealed our taxes but have been denied repeatedly. This also can cost money IF your appeal is successful. A tax appeal company can charge 50% of whatever taxes they save you. Or you hire an attorney which may be more cost effective in a few ways.
One center i'm in thru SUN is only 16% occupied, one tenant left. NO DISTRIBUTIONS OF COURSE.
How about that for investing hundreds of thousands of retirement dollars!
How about that for a "high quality, worry free investment"?
In typical SUN1031 fashion, they do NOTHING to help. They simply flipped high cost property. I'm surprised they even answer the phone.
There will be a day when scammers like SUN1031– shawn & ruth coleman of Arizona – will get what's coming to them. You can't scam 1,000 people without a few taking matters into their own hands.
HOW DO THEY SLEEP AT NIGHT?
One thing our owner groups are finding out the hard way, is that since we ALL overpaid SUN1031 for property due to their many misdeeds, that we are paying high property taxes. This has driven NNN tenants away to lower cost centers. this has also has prevented any new leasing in many of the properties.
You really find this out when the tenants leave and owners are left paying their own CAM!
Once a County/City/State get their tax hook in you, they are loathe to lower their rates, etc. the valuations are typically done when a sale occurs.
We have appealed our taxes but have been denied repeatedly. This also can cost money IF your appeal is successful. A tax appeal company can charge 50% of whatever taxes they save you. Or you hire an attorney which may be more cost effective in a few ways.
One center i'm in thru SUN is only 16% occupied, one tenant left. NO DISTRIBUTIONS OF COURSE.
How about that for investing hundreds of thousands of retirement dollars!
How about that for a "high quality, worry free investment"?
In typical SUN1031 fashion, they do NOTHING to help. They simply flipped high cost property. I'm surprised they even answer the phone.
There will be a day when scammers like SUN1031– shawn & ruth coleman of Arizona – will get what's coming to them. You can't scam 1,000 people without a few taking matters into their own hands.
HOW DO THEY SLEEP AT NIGHT?
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