Update: EFI’s bankruptcy expectations
June 29, 2008 10:33 pm
By KAREN VELIE
Estate Financial Inc. (EFI) will remain in bankruptcy for at least the next few months and at the same time independent evaluator Hanno Powell will continue his audit, the Fresno attorney said earlier this week.
A “complete evaluation” of EFI’s books was ordered during a June 16 San Luis Obispo Superior Court hearing. During that hearing, a group of investors requested the court appoint a receiver to oversee the company’s $170 million mortgage fund. A week later, the Department of Corporations, on behalf of the people of California, joined the plaintiffs in their request.
In an unrelated action, a group of creditors forced EFI into Chapter 11 bankruptcy proceedings in a Santa Barbara’s Central District of California United States Bankruptcy Court June 25. According to Powell, the bankruptcy proceeding would normally have canceled his evaluation, but he said this is not the case with EFI.
Under Chapter 11 bankruptcy, the court supervises the restructuring of the company and its debts, some of which can be partially or completely dismissed. Traditionally, the company comes out on top, followed by creditors, and then investors.
However, all creditors have a right to be heard by the court and receive fair and equitable treatment. As to EFI’s bankruptcy, investors may end up as creditors. EFI’s owners Karen Guth and Joshua Yaguda, if found responsible for the fund’s financial decline, may not fare well in the court proceedings.
“As the facts bear out, many investors may end up as creditors,” Powell said.
Two of the plaintiffs listed on the bankruptcy petition, James and Kathleen Scott, started as investors. However, the couple claims that because EFI failed to list them on the deed of trust on one loan and failed to pay them their proceeds on the sale of another, they are now creditors.
“No one can evaluate the effect on creditors until bankruptcy schedules listing all assets, liabilities, and creditors are filed with the court,” Powell added. “Because it is an involuntary bankruptcy, the schedule will probably take several months. I don’t know if anyone can give an accurate assessment of how this will affect the investors.”
Tags:, bankruptcy, EFI, Estate Financial, guth, paso robles, yaguda
Member Opinions:
By: Anonymous on 5/9/08
Interesting Legals in the Telegram Tribune. Notice of Trustees Sale on Loan B352-05 – B366-05 Signature Homes and Al D'Amico in the amount of $7,584,421.10 APN: 026-281-055/056 and Three Bells,B193-06 Karen Guth- Al D'Amico in the amount of $6,453,285.89 APN: 040-111-024. Open your eyes
By: Anonymous on 4/28/08
Mike says:
Well now Karen and DOYA/EFI were very busy last week 4-17-08 dozens of filings were done on property. According to the County Recorder Julie many filings were done that day. There goes the money
April 21st, 2008 at 6:16 AM
Kelly says:
Yes, they were very busy when i went to check on my deeds i learned the county recorder clerk Julie Rodewald has officially denied all the public access to check the records citing security and privacy reasons. So I tried on line at home and the county web site will no longer allow anyone to access the information. Again citing personal privacy not wanting the upset investors to know where people live or what deeds have changed she is no longer allowing full public access. So something is really wrong here.
April 25th, 2008 at 5:52 PM
By: Anonymous on 4/27/08
There will be a hearing in SLO Superior Court on Tuesday, April 29, at 8:30 a.m.,courtroom D4 for a case Karen is involved in with her old husband, Charlie Applebaum. It might be interesting to attend and hear what the old gal has to say for herself and to glean information that may be helpful to us in filings of our own. You can check it out for yourself at: http://www.slocourts.net
under "calendar", select "civil & family law by name" then scroll down to Applebaum and then scroll down to Guth. Hope to see you all there!
April 27th, 2008 at 8:18 AM
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By: Anonymous on 4/21/08
IS GUTH ESTATE IN FINANCIAL TROUBLE? You bet!!!!!!!
"Since last February 1, 2006, Estate Financial was a borrower from Heritage Oaks Bank on an unsecured line of credit in the amount of $5,000,000. Guth was a guarantor on the line of credit. About 11/15/07 EFI entered into a "CHANGE IN TERMS AGREEMENT" with Heritage Oaks Bank. "The third paragraph on the first page of the agreement describes the change in terms including an extension of the maturity to 11/15/08, that the loan is no longer a revolving line of credit and that collateral for the loan has been added which includes a deed of trust on each of the two gas station properties owned by Templeton Products, Inc.
Can Heritage Oaks Bank sustain a $5,000,000 loss?
LYING: Guth/Estate have no lawsuits against them. Here's two for you to look up – 6/22/07 Case CV070549 and 1/10/07 CV071107. The latter includes a cause of action asking the court to issue a permanent injunction prohibiting Guth and Yaguda from continuing to engage in unfair, deceptive and/or fraudulent business practices.
Investors – you are LAST IN LINE as Guth/Yaguda have mortgage away EVERYTHING.
By: Anonymous on 4/20/08
Oh my G_d.
On March 17, 2004 Karen Guth swears under penalty of perjury as follows:
"EFI's largest asset is a note receivable from Republic Properties, which is not collectable."
NOT COLLECTABLE???????????
By: Anonymous on 4/20/08
Quote Charlie Applebaum 12/2/2003 in a sworn statement in court in SLO County. Go to the court and see it for yourself.
"The real reason Estate Financial has had to transfer "bad loans" to Republic for workout is that the Respondent (Karen Guth) decided to advance certain funds which were invested by investors on one project, to the builder on another project. This action is clearly inappropriate….."
She has been committing this illegal act of commingling fund since at least 2003, so says her ex-life partner.
By: Anonymous on 4/16/08
There will be a meeting of the investors on the Hinds Ave.project in Pismo Beach. Loan #518-05 on Monday April 21, 2008 at 12 noon at the Colony Inn Hall; 3600 El Camino Real, Atascadero. It is located next door to the Kennedy Nautilis Center. 805-466-4449. The purpose of the meeting is to hear about the different options available to the investors, to hear from the investors as to what they want to do, and to vote on these options. It is very important that all voting investors attend this meeting. Karen Guth, EFI President, Tony Wells a developer, Madeline Winn the junior lien holder, Wyndham Resorts, and two other interested developers will be there to tell us what they have to offer.
This meeting is definitely happening; if you want a voice in what happens to your investment on this project, then you should attend this meeting.You may e-mail me at bluesky41144@yahoo.com and put in the subject line, loan 518-05 or call me 805-610-6331
By: Anonymous on 4/15/08
I have sat back long enough watching these blogs, hoping against hope that these accusations against Estate were wrong. Well they are not wrong.
I have just learned that Estate sold a property I have an interest in through a fractionalized first deed of trust. That sale occurred more than 6 months ago. I have not seen a penny of my investment and interest payments stopped late last year.
Mrs. Guth – where is my money? Did you steal it?
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By: Anonymous on 4/15/08
ESTATE FINANCIAL LAWSUITS
On April 8th two major subcontractors who worked for San Dimas 18, LLC sued San Dimas 18, LLC, ESTATE FINANCIAL, INC. AND ESTATE FINANCIAL MORTGAGE FUND, LCC.
Why does that matter! Because other subcontractors will likely begin their own lawsuits. And the more lawsuits Estate has to defend the costlier it is going to be for all investors.
Case # KC052088 and KC052068. Pomona court (Los Angeles County)Attorney for Plaintiffs is Jonathan Zeko -619-233-7078
By: Anonymous on 4/11/08
New uncoveredslo.com article/blog regarding Esate Financial at
http://uncoveredslo.com/?id=94&showEntry=1
By: Anonymous on 4/10/08
MEETING
DATE: Thursday April 17th
START TIME: 2:30PM
LOCATION: Atascadero
Colony Park Community Center
5599 Traffic Way
Traffic way exit off of 101 Whether going N or S
By: Anonymous on 4/9/08
I attended the meeting yesterday with Karen & Josh.
Please email me at jschacherer@hotmail.com, or call me @ (805) 710-3945 if you like to discuss the outcome of the meeting.
By: Anonymous on 4/8/08
Ron Cooper says:
NEXT MEETING. Thursday, April 17th at 3 PM. Location to be determined in the next few days. Proposed agenda will be sent tomorrow.
NO MORE TALKING. Time to vote on how to move forward. We need 500 people, so please start telling everybody.
April 8th, 2008 at 9:34 PM
By: Anonymous on 4/8/08
E.F. mortgage fund forum….these were to begin on 4/1/08…has anyone been in the first round of these and how did they go?…how accomodating was karen guth in imparting relevant information regarding the fund?…any information would be appreciated, thanks
tkh548@sbcglobal.net
By: Anonymous on 4/8/08
who could give us info about 155-06 to 186-06.
we signed in january a document autorising EF to reconvey this loan and EF is now in 2nd position
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By: Anonymous on 4/8/08
HIND AVE PARTNERS LLL: B105-06 and 518-05. On 105-06 it looks as if more than 50% of the holding investors are against the 60% sell off, so that one has been stopped. B518-05 could still be sold off at 60%. There are over 180 investors in 518-05 and we have yet to contact all of them. There appears to be the potential of a better deal (78-82%) waiting in the wings. If you have not signed the 60% offer, please don't. It seem unlikely that the 60% bidder would drop all interest if we delay a few weeks. There are efforts underway to get a meeting of all B-518 investors together very soon. Watch this site for more info.
By: Anonymous on 4/7/08
Fund investors, please read this! Apparently no one has a list of investors so it's time we make one of our own! If you are new to this situation, Karen Guth has refused to give out the Fund investor list (as promised in her Circular) therefore not giving us a chance to regain control of our investments. I've arranged for an email account for you to write to. Please include your name, address, phone number, email account and any other information you would like to add. This is essential so you can be contacted. There's supposedly 1800 investors, so if anyone does have the list, spare me and let me know. Keep in mind, the phone book releases most the same info. Let's not waste anymore time! Send your info to effundinvestors@yahoo.com By sending your info you are not committing to any particular side or opinion. This list will also help individual deed holders in projects where Estate Financial has a majority control. Also, if you have given money to EF and you aren't sure if it's even invested in a deed or the Fund, please write.
Individual deed holders – I also recommend that someone step up to the plate for the larger first trust deeds and do this for their individual projects as well.
By: Anonymous on 4/7/08
Fund investors, please read this! Apparently no one has a list of investors so it's time we make one of our own! If you are new to this situation, Karen Guth hasn't given out the list therefore not giving us a chance to regain control of our investments. I've arranged for an email account for you to write to. Please include your name, address, phone number, email account and any other information you would like to add. This is essential so you can be contacted. There's supposedly 1800 investors, so if anyone does have the list, spare me and let me know. Keep in mind, the phone book releases most the same info. Let's not waste anymore time! Send your info to effundinvestors@yahoo.com By sending your info you are not committing to any particular side or opinion. This list will also help individual deed holders in projects where Estate Financial has a majority control. Also, if you have given money to EF and you aren't sure if it's even invested in a deed or the Fund, please write.
Individual deed holders – I also recommend that someone step up to the plate for the larger first trust deeds and do this for their individual projects as well.
By: Anonymous on 4/7/08
My personal opinion is that Laura Paulsen (and probably the rest of the crew) is hypnotized into believing that Karen and Josh are family. Or somehow she believes she is doing right by perfroming her tasks as told. Or perhaps the pay is just so tempting, that she wants to stay (greed) while she helps Karen break her promises to her investors. There is no possible way this girl is that clueless to the law. You'd have to be a 8 year old not to get what is going on there. I predict there will be serious legal/criminal trouble for her if she doesn't come clean. And Laura if you are reading this, your only slight chance of gaining any respect from this community is to do the right thing – quickly! The people of this community will never forget which choice you make! One will make you a hero, the other could be legally devastating to you! In no way is this a threat, it just reality. Karen Guth is not your 'mother.' Let her go, it's okay……. let her go….. I doubt Karen Guth will be faithful to you until the end. Chances are she'll try to blame others and you may very well be in the line of sight. Let her go……
By: Anonymous on 4/7/08
FYI or Mike,
I am still trying to figure out who are the proactive players but I would like to participate.
I may be able to help you with addresses of the projects in the FUND. If that will help please e-mail me your contact # and I will share what I know
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By: Anonymous on 4/7/08
Butch & Ron Cooper: Her name is Darla Hansen-lives in Paso area-no info on Ph# or address. It has been suggested she was terminated for disagreeing with Karen and Joshua on internal business practices, and for revealing to an investor information considered secret by Karen and Joshua. Laura Paulson is still employeed by EFI as funding administrator. Both are good for information under the right situation.8bdb6
By: Anonymous on 4/7/08
mike–how's the progress on the pictures?
any response from your pointed questions to EF?
Mike Knecht says:
I am going to take and organize a collection of pictures of EF building sites and projects in thier current condition. Anyone with an address of one of thier projects please e-mail me. These picture and addresses wil be available to all investors.
April 1st, 2008 at 8:32 AM
By: Anonymous on 4/7/08
Question for Rabbitt,regarding exemployee of EFI, Darla Paulsen do you have any further information on her wherabouts,or any other ex-employee's I would like to interview.
By: Anonymous on 4/6/08
new karen guth beach house purchase with your investment money–
38-7th street cayucos, calif.
By: Anonymous on 4/6/08
barbara– good work–what were the lies?
By: Anonymous on 4/6/08
Thank you all for your direction so far.
We have our family life savings in the FUND and have little experence with people like Karen and her son.
We did get a list of the properties in the fund. I was with my attorney and we refused to leave the office with out it. Karen threw it at us and walked out. we have notes from that meeting and she was caught in several lies. If this is of any help please e-mail me at bcqueen@charter.net
By: Anonymous on 4/6/08
FYI the loan number was 576-05 Pierce Monte Vista
By: Anonymous on 4/5/08
I have a substiantial investment in; The Fund, Hinds Pismo,The Village Desert Hot Springs,Brisalera st.SLO, Pannon Design Tehachipi. I wish to be in concact with other investors
Michael Donahue;mcdonahue@charter.net tel; 805-909-0509
By: Anonymous on 4/5/08
I have a substiantial investment in; The Fund, Hinds Pismo,The Village Desert Hot Springs,Brisalera st.SLO, Pannon Design Tehachipi. I wish to be in concact with other investors
Michael Donahue;mcdonahue@charter.net tel; 805-909-0509
By: Anonymous on 4/5/08
I have a substiantial investment in; The Fund, Hinds Pismo,The Village Desert Hot Springs,Brisalera st.SLO, Pannon Design Tehachipi. I wish to be in concact with other investors
Michael Donahue;mcdonahue@charter.net tel; 805-909-0509
By: Anonymous on 4/5/08
vince–the $20,000. what loan number?
thanks
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By: Anonymous on 4/4/08
To: show me the money. Yes I have received a payoff for abot $20,000 two weeks ago. I also received a payoff on November 6th of 2007.
my email is sales@aitcoc.com
By: Anonymous on 4/4/08
Gary
It's possible to have 2 loan numbers on a property. The projects in Atascadero all had to loans on them. One usually identified as a "construction loan" and the other as "unknown." You could consider these as a 1st and 2nd loan. If it goes belly up usually the 2nd has the first option and if they do not take the oportunity to take over the 1st then the 2nd will usually "disappear."
By: Anonymous on 4/4/08
Gary: I agree regarding B105-06, (Hind Ave) why would you sell a property for 27% of it's appraised value to a "NEIGHBOR" without any onfo. (fees etc). and Karen being one of the borrowers? Don't sign!
By: Anonymous on 4/3/08
Gary, Dewdog,
Can Karen have two different loan #'s for the Hinds project? Gary says it's B105-06 but we are invested in a loan with the same APN# under loan B518-05. What doesn this mean?
By: Anonymous on 4/3/08
Is Karen Guth still accruing a 1% servicing fee on our loans even if we're not getting any interest payments? Since she won't answer any of our calls, maybe we should all go down to the Estate Financial office together to get some answers. We'll see you soon Karen!
By: Anonymous on 4/3/08
HIND AVE PARTNERS B105-06 Info: project address is 150 Hind Ave w/ APN: 005-152-033. If you hold any TD's on this don't sign off on the short sale yet. More info coming.
By: Anonymous on 4/3/08
Gary,
Are you referring to the Pismo Beach ocean fron hotel project? We are in the investment but our loan # is B518-05. Did Karen fund this with two different loan #'s? I don't understand.
By: Anonymous on 4/3/08
INVESTORS IN HIND AVE PARTNERS ALERT: Loan # B105-06: EFI wants us to agree to take 60% on sale of project. Please don't sign yes yet. It appears a 2nd TD holder is foreclosing and there maybe serious conflicts of interest. More info to come.
By: Anonymous on 4/3/08
WOW
What does she have to hide? Your money.
You all should have another meeting a seek legal advise and take action before your money completely disappears. Talk is cheap and accomplishes nothing.
By: Anonymous on 4/3/08
Hi all,
I urge you to take the time to read this info via the DRE, very informative. I know much of this required documentation is often neglected by lending brokers. Many brokers are sloppy and arrogant, even if not crooked. Contact your broker and demand all documentation due you.
http://www.dre.ca.gov/pdf_docs/re35.pdf
By: Anonymous on 4/2/08
Truman;
Soon, for now just be patient. Things are hapening. Soon you'll learn and spread the word to other investors
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By: Anonymous on 4/2/08
Folks, I'm still lost. Karen Guth is still getting away with murder. And we continue to talk about it.
I don't know what to do, but one of you must know how to stop this. I certainely hope so. Please let us know.
By: Anonymous on 4/2/08
Why Ms. Guth refuses to talk with the investors? When they gave her the money, she was eager and had all the time. Now, no time or answer.
What does she has to hide?
By: Anonymous on 4/2/08
has anyone been paid back, partially or fully, on a loan through Estate Financial in the last 3 months? Other hard money lenders such as RPL are working their way slowly through the process, but I've seen no action with EF.
By: Anonymous on 4/2/08
If I buy a forclosure from EFI or one of the others, can the investors get some money and can they come to me for more?
By: Anonymous on 4/2/08
Whats new with estate Financial? Nothing!!! as long as new suckers come in for the fat yield, they can play the game.
BTW. if the land was foreclosed on, investors have the right to the money even if its less than what the original amount was.
Maybe a quick court order is in place. Watch for new developments
By: Anonymous on 4/2/08
how do you stop them
Very good question. That property was purchased by Karen Guth aka Viana Development on 4-27-07 for $1,200,000. On the same day Estate Financial lent $1,380,000 on the project. That's $180,000 more than the purchase price. Once again more than likely her up front fees. That is also more than 100% LTV and definetly not the 65.71% LTV advertised. The property does not have the entitlements yet as the information in the MLS states "contact city of Morro Bay for possible uses. Info not verified."
By: Anonymous on 4/2/08
Is EFI required to contact the investors priot to completing a short sale?
How do we know they won't keep the money?
By: Anonymous on 4/2/08
From EFI web-site. They are still borrowing money for their own projects. They have balls don't they?
Land Purchase
Morro Bay, CA — This loan is to purchase and develop 3 lots in Morro Bay. Lots are contingious and will be developed either as a hotel or a commercial/residential mixed use. Zoning permits 3-story structure. Viana Development, LLC is a related entity to EFI.
Term: 24 months • Yield: 12% • LTV: 65.71%
Loan Number: B122-07
By: Anonymous on 4/1/08
A short sale is when a lending institution will look at accepting an offer on a property for less than what is owed on it. I would think that the investors would have to be the ones that would decide on this and not EF. Mechanic liens would more than likely be eliminated. Any 2nd loan would be eliminated although past taxes would be due prior to COE by the new buyer. The person who has received the money from the EF loan would also be penalized for taxes for the difference between the amount borrowed and the sales price. There may be a law in the works that might eliminate this "gain tax."
Once again I would suggest that the investors foreclose on their properties and get their investments into their names and protect your investment. Remember there is a property in Atascadero that EF foreclosed on that went into Karen Guth's name and then she borrowed on it from Heritage Oaks Bank. Some investors had to have money in that project since EF financed the project and not Karen Guth although it ended up in her name. Something stinks here.
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By: Anonymous on 4/1/08
It must have a title insurance against all liens.
Yes, the investor must get all the money from the short sale. If it is less t the original investment, there can beo more claim for additional funds if the loan was specifically against one property.
By: Anonymous on 4/1/08
Does anyone know if a property funded by EFI is purchased through a short sale, is the buyer liable for anything after receiving clear title?
Do the investors/victims get that money?
By: Anonymous on 4/1/08
Further comments; According to Karen Guth, EFI's current problem is the result of "SubprimeMortgage" melt down and current realestate market condition. She needs to gob ack to school to take some basic courses in economics. Her resume indicates criminal justice degree, she may need it more than ever. What happened to many of the projects that were financed in 2004? The market was climbing fast, even in 2006 it was high. Why were those prjects not completed? Because lack of funding! She got involved in many partnerships that went sour, such as the Vinery on Rt 46. All that money that was funded with nothing to show. She had to approve expenses and can't even blame the contractor because she drove by the project almost daily to and from work. Investors money is gone. That site is worth no more than $1,200,000 while on her books it is likely over $5,000,000. Thats a lot bacaru for a driveway and gate posts!!
Need answers for the trail of money. What other similar projects are out there?
By: Anonymous on 4/1/08
A few clarification regarding construction loans.
Normally, a construction loan can not be more than 75% LTV which includes land draw if any. EFI's circular clearly states and shows what is the LTV after loan is fully funded. I don't know how 100% loans come in unless appraisals are fabricated. It is EFI's best interst to make a higher loans since it nables higher fees upfront on the entire loan regardless when the (if as the information shows)loan is funded 100%.
Once many of the internal documents and the cash trail is exposed, EFI will have a lot of explaining to do. That day is coming faster than EFI wishes.
One more issue; EFI's mngt. fees and the way it is charged to the fund. It appears that EFI takes its mngt. fees and interest spreads from the fund regardless, even if there was no return of loan proceeds from completed projects. There is no way they could take the money from sale proceeds if projects were incomplete and still sitting. So, the only way to pay interest and mngt. fee overhead/expenses to investors and themselves when newmoney came in from existing or new investors. That is a serious SEC violation. Should EFI kept each loan segrigated as they are required, some projects would have folded two years ago or ealier and they would have been disposed of at a higher price than can be expected today or later. However, that scenerio would have exposed EFI to some harsh reality with investors demanding explenation years back. Today, Karen Guth still values the fund at 95% to 100% as if nothing happened. That allowes her to collet mgnt. fee on the full amount, depriving investors their potential recovery, while hiding her delusional head in the sand. Any one still beleiving to get 100% of their money back are just as mistaken. It is the reality while she still collects her monthly fees. At this time we have no real picture of the operation, but soon light will shine through. Anyone sign on with any new LLC will be liable for further damages. Do not sign anything, just demand answers with documenst.
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By: Anonymous on 4/1/08
I am going to take and organize a collection of pictures of EF building sites and projects in thier current condition. Anyone with an address of one of thier projects please e-mail me. These picture and addresses wil be available to all investors.
By: Anonymous on 4/1/08
Carol B and Ron,
I will have to respectfully disagree with Ron. If you designated your money towards contstruction the money should go towards construction which would include plans, permits and land improvements. If the loan is for land purchase your loan would be for the LTV of the appraised value of the complete project which would include both land and construction. Most of the loans that I have researched are recorded as CONSTRUCTION.
Although it does appear that most of these loans were made for 100% or more for the purchase of the land and the improvements. This is why most of you are in trouble because whoever received the money didn't have any and therefore there is no equity in the project. This is why they have your money and you don't.
By: Anonymous on 3/31/08
All parties need to coalesce together. I heard there may be another meeting, who is doing that and when? How will people be notified?
Ron Cooper and others have given their phone and/or email address for those wishing to get serious-have all done so? Is there any internet person in this group that could set up a website for all to connect on? Would the 'victims' be willing to kick in ten bucks or so each to support a defense committee? Many have lost hundreds of k, why not spend a bit more to get some justice?
All should contact the DRE, Dept of Corporations and the SLO DA and demand action on this.
By: Anonymous on 3/31/08
Ladies and Gentlemen:
Information, information, information. But what are we accomplishing except giving Guth/Yaguda more time to liquidate and do who knows what with our money.
Anybody have any good ideas about how we can stop that from continuing to happening? Personally I'm broke because of EFI. They should not be able to continue to live in the lap of luxury on our money. And believe me they are doing just that.
H E L P!!!!!!!!!!!!!!!!!
By: Anonymous on 3/31/08
Carol B:
No it is not illegal.
By: Anonymous on 3/31/08
Carol B
Look at your paperwork and see if the loan is listed as a construction loan. If you have an APN or address I can check for you. If it's a construction loan only then there should be a cost breakdown form showing the actual estimated cost of construction. For example if the cost breakdown indicates a total cost of building to be $400k and your loan is represented as an 80% loan to value then the loan should have been for $320k that went towards the construction within the project only. If there was an appraisal for the property it should also indicate both land value and improvement (construction) values.
By: Anonymous on 3/31/08
I am a part of the Mortgage Pool and need to be kept informed on this mess. If I can be of help please respond.
By: Anonymous on 3/31/08
Does anyone know if it is illegal to purchase property with the construction loan?
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By: Anonymous on 3/30/08
Ron, check your email. Jill wrote you.
By: Anonymous on 3/30/08
Rabbit: Any idae how we can get a hold of these fired employees. I bet they have a wealth of information. Thanks for the idea. If you give me the leads I WILL track them down.
By: Anonymous on 3/30/08
Someone should request Darla Paulsen, former emoloyee of EFI and a senior funding administrater, to discuss the reasons for her termination-also the secret internal actions of EFI.
By: Anonymous on 3/30/08
Has there been any new articles written about this situation?
By: Anonymous on 3/28/08
RJA,
I am also an investor on lot #19 Capado& Regio. I have a 26% interest in this project
and would like to get together with you and some of the other investors to take control and action of this property.
Nothing was disclosed about this house being an unsold rental for low income people.
I have received an LLC proposal from EF which I do not want to sign until I know our situation completely.
I have a list of all the other investor names but no telephone#'s/ or addresses.
I live in Templeton and it would be easy to review this property in person. Some other bloggers say it is only 1000 sq feet. I tend to believe my file folder notes showing 1385 sq. feet
and confirmed by walking thru the house last week.
Mel McCullough is handling this project for EF but information from him is sketchy and incomplete.
What are your comments and thoughts?
By: Anonymous on 3/28/08
Sign up for the new LLC with EFI, you will also be liable for additional charges and expenses as EFI wants. You trusted them before, got cheated and robbed, why would you trust them Now?
By: Anonymous on 3/28/08
People who are in the Mortgage Fund, I heard there was an initial fee charged to get into this fund. Yet many people weren't told about this. Has anyone heard of this? The reason I ask is…..I thought
1 share = $1. 1000 shares equals 1 unit. Say you invest $100,000 wouldn't you have 100
units? Anyone seeing on their statements unit amounts less than your investment? Somethin close to 5% less. Mine shows a lesser unit amount by about that percentage. Does yours? Can anyone explain that to me?
By: Anonymous on 3/27/08
Victims of EF or 21st Century:go here to get a form to complain to the DRE. http://www.dre.ca.gov/pdf_docs/forms/re519.pdf. Send it in to the Fresno office. I had a long talk with them, they want to hear from you.
Anyone out there that lost money at 21st Century? If there is an investigation I have a bit of info to offer. riki77@gmail.com
By: Anonymous on 3/27/08
I would follow Pets's advise and act NOW. Why is Karen waiting 2 months to address the problems that exist today. All of you should be seeking legal advise regarding foreclosures and getting your investments into your names instead of Ms. Houdini-who may disappear like another representative did doing these hard money loans.
By: Anonymous on 3/26/08
One victim of EF reported today Karen Guth has offered to hold a 'forum' to clear the air-in JULY!!! I thought it would be reported here by now. Don't anyone agree to that, Take action now, make those calls to various agencies (and harangue the DA). Move now, move fast. If Karen is a crook she'll be long gone by July.
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By: Anonymous on 3/26/08
Really folks, listen up! If you think fraud has been committed, even if you are not sure, take action! Just because Snoopey wrote in saying an investigation has started doesn't mean you should feel relieved. Who knows who Snoopey is??? Who knows, maybe there is no investigation going on at all and this person just wrote in to give you a sense of relief hoping you'll back off. These agencies most likely aren't aware of YOUR particular property or problem unless you contact them so don't sit on your fanny! Do something now! Take a day off of work if you have to – JUST DO IT!
By: Anonymous on 3/26/08
I mistakenly used the workforce housing value in the prior calculation instead of the moderate value.
By: Anonymous on 3/26/08
RJA & Lot 19 Investors
Checking the "Affordable Housing Standards" issued by the county on 3-11-08 the houses that are designated as "affordable" are allocated the following values. For a 2 bedroom house the very extremely low price is $35k, very low income is $70k, lower income is $105k, moderate income is $208k and workforce is $291k.
Rents range from $434 to $2168 per month. rents also include utilities.
Most of these "affordable" houses are designated in the moderate category. If that is the case the maximum selling price is $291k and it appears the project has been funded $356,750. If sold at the $291k allocated sales price and then you deduct sales cost it could possibly cost the investors close to $80k plus the cost to complete the house to sell the home.
If this house is truly designated "affordable" or "workforce" (check with the city) it appears you may have a very strong case against EF.
This not legal advise just information.
By: Anonymous on 3/26/08
Hello, RJA
I am on the Loan, Lot 19,on the Corner of Copado & Reqio also. please call me, Bob at 805/227-6599. Why don't you put your number out so we can call you?
By: Anonymous on 3/26/08
I have been just looking around and i feel so sorry for you EFI investors. I found the most gross and mismanagement of your funds.
In most of all loans to projects, EFI has over 51% control because the Mortgage Fund is invested in the different loans/projects, and Karen Guth and Joshua Yaguda vote for the Mortgage Fund!My investigating team has found that most projects are out of loan to value; more money has been loaned to the project than what it is worth. Houses are less sq.ft than what was loaned for. Money has been fully funded to contractors and there is no construction or infrastructure, only dirt.
If you have found similar discrepancies in your loan packages and want to complain to someone about this, you may want to call the attorney with the Dept. of Corporations at
916-322-6067; and Debbie with the SLO County DA's office at 805-781-4692.
Mr. Otto with the FBI at
805-346-2728.
These departments now have an open investigation on EFI and want to hear from you.
By: Anonymous on 3/25/08
RJA
You may have opened up a whole new can of worms on Lot 19. If that house was designated one of the homes in the project as "affordable housing" that takes a great part of the value and marketability away. The city of Atascadero deed restricts these "affordable" homes for a period of, I think, 30 years. The sales price is determined by a percentage of market values and income of the potential buyer. That house, if deed restricted, probably can't sell for over $265,000 to $300,000. That formula stays in place for the 30 year period. There is no room for the owner to get back any fair portion of appreciation should the house ever sell. This is probably the reason you were told it was going to be a rental. This definetly should have been disclosed to you. If this is true the project was over financed by at least $50,000 and is still not completed, Because of the deed restriction it just sits because there is little or no profit to be had. I'm sure there are more houses in the project that are also deed restricted as "affordable."
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By: Anonymous on 3/25/08
Gotcond: My heart goes out to you! Obviously, Don appears to have no integrity!! I'd rather die poor and know I was fair with people than screw over folks so I can feel a sense of empowerment. Too bad that's what these people are seeking! I bet Don and others like him, are constantly looking over their shoulders. If they aren't, they should be. Money doesn't make who you are, I just wish these low-lifers with fat pockets can see this. They think their money buys respect but they are wrong! – integrity does! I hope you were successful suing him. And BTW, 'those of the same feather flock together' – keep that in mind!
By: Anonymous on 3/25/08
Tread carefully! Don Vaughn used to be the owner of estate financial and considers himself a consultant? He is also the owner of All American Foreclosure and foreclosed on a property i had with Country Financial. Just to let you know the scenario. Mr. Vaughn agreed to a loan for $700K for the development of a lot split small subdivision. He wrote the note for $700K charged points on $700K and funded the loan for $575K. I went through the plans, city etc. and when i went back to get the rest of the $$$$ for the offsite improvements he flat out just told me "he didnt have the money". The money that was supposed to be held in an escrow account. Mr. Vaughn proceeded to foreclose on the project through his company All American Foreclosure, bought the property on the court house steps for below market value, sued me for a deficiency judgement of over $300K and now has the project on the market for sale at twice what he bought it for.
By: Anonymous on 3/25/08
RE: Lot 19, the corner of Copado and Regio. If you are on this note, please respond. I am a co-trustee for $25,000.00 vested on this property. The house a "sold" sign in the window though is not complete. I was told by an agent in the R.E. office that has the listings from the developer/builder exclusively that this house is "marked sold" as they can not sell it as it is to remain owned by the developer/builder to be retained as a rental property for low income or Atascadero Workforce. If you have further info, I have already contacted an attorney who has requested info from E.F. (Estate Financial) which has provided us copy of the the note and as I am aware, never was it disclosed to my vestor or on any statements that this home was not going to be built and sold to the public. Money was used to complete projects that they could likely sell and the house remains incomplete, as EF says for a sum of approx $35,000.00. At this point what is happening with the profits on those already sold and why isn't this home complete as the overall project was never to start unless the project was "already fully funded"? Looking forward to putting any leins against the funds and assets of the personal interests of all the principals of builder/developer as well as the lender. I was told by the EF office staff after payments were three months in arrears that they were not going to foreclose as "they had to protect their borrowers"…I guess we know why now. They are in default, however where are the continued statements on the investors principal as well as the accruals? EF is so far off in holding fiduciary responsibility that I would not allow them further control to finish or manage for an owned low income rental property.
By: Anonymous on 3/25/08
Folks, our money is gone. If we recover 25% we will be lucky. I have well over $200,000 in the Mortgage Fund and have filed complaints with the Dept of Corporations, Dept of Real Estate and the State Attorney General. My hope is to get an investigation of Estate Financial and the other LLC's they are involed in and prevent Karen Guth from establishing additonal LLCs to move money into and or shift liability to us. I hope the rest of you are not just setting back and waiting. I also suspect the Mortgage Fund probably has a piece of almost every loan.
By: Anonymous on 3/25/08
whereismymoney
Is your project at the corner of Copado and Regis? There is a sign out front that identifies it as Lot 19. If it is, that house is just a little over 1000sq.ft which really puts the previous numbers for the 1700 sq. ft. numbers way off. If this is it, it appears there could be 100% financing for the entire project, not just construction or there is something very starnge going on.
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By: Anonymous on 3/25/08
whereismymoney
You need to check your numbers carefully. You say the project is 95% complete and it will take $35,000 to complete. A quick numbers check, 5% of $700,000 is $35,000.
There has been $356,750 borrowed on the property for construction. The largest house I can find in the project is 1700+ sq. ft., that puts the building cost at approximately $210 a sq. ft.. If you put in the additional $35,000 that brings the building cost up to around $230 per sq. ft.. You can have a very very nice custom home built for that amount at retail value not builders cost.
The 42% from EF may be from the pool fund. Those people really need to find out where their money is.
On top of all of this I'm guessing that there are probably back taxes, mechanical liens and possibly additional permit fees. Additional fees are sometimes charged when there has been no activity on a project for 180 days or more. Unfortunately your in Atascadero which is fee city. The owner/builder may also be responsible for past homeowner association fees depending how the agreement is written up.
By: Anonymous on 3/25/08
Apn # 025-402-068 was the tract number. This number was changed into 025-601-001 thru 025-601-007 and 025-602-001 thru 010 for individual lots.
By: Anonymous on 3/24/08
dewdog,
Thanks for your response pn the Oak Grove/Doya project.
The house is 95% complete and need about $35000 dollars more work to finish it.
I see that Estate Financial Mortgage fund hold 42% ownership and I have 20% as the second largest owner, and 9 others make up the balance.
The APN # 049-104-019, loan amount $306,750 is correct.
I don't know any thing about the additional $50000 loaned out…
The Loan # is B689-04
Hoe can EF put the mortgage fund in on our individual loans.
They have done this on all of my other 11 loans.
Isn't this illegal mixing of funds
with huge conflict of interest issues/
Should i be sueing them to get the money back, or what?
By: Anonymous on 3/24/08
INVESTORS
You can't just COMPLAIN to the District Attorney. Like all of the local police departments do, you have to take your case to the District Attorney. What does that mean?
Get all of your paperwork in order. Find out where your money was earmarked to go. Get the cost breakdown and a disbursement of funds statement. Visit the location where your project is and determine what misuse of your funds have occurred if any. Then if you have EVIDENCE that you were defrauded or if your funds were comingled then take your evidence to the DA and demand that a complaint be filed against the responsible person who you think violated you.
These are just suggestions and not legal advise.
By: Anonymous on 3/24/08
Dewdog,
Thanks for trying.
By: Anonymous on 3/24/08
Why bother with the DA?
It takes someone from the outside, not even State agencies.
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By: Anonymous on 3/24/08
Seems that all the loans are from 2004. HWhat hapened since than?
By: Anonymous on 3/24/08
Seems that all the loans are from 2004. HWhat hapened since than?
By: Anonymous on 3/24/08
Get on the DA. He will not respond with out heavy pressure.
These people are classic cons and will continue to steal your money if you let them.
Also remember, this is an election year for the BOS. Get them involved and don't be shocked if they are connected.
By: Anonymous on 3/24/08
Well, isn't it nice of Karen to give you the opportunity to loose more money while she would be collecting more fees and having her expenses paid. Jsu sign for the new loan and make sure you have enough to cover the potential payments. If you can't make the future payments, you will not only be in default, but potentia liable for more. WOW WOW what an audacity!!!!!!!!!
By: Anonymous on 3/24/08
WORRIED
I could not find anything with that APN either in DataQuick for that number or anything that is related to Doya. There is nothing that corresponds to the APN in the MLS computer system either.
Do you have an address or possibly a legal description like tract# and lot#?
I would suggest signing nothing until you know exactly what is going on. I'm not that familar with the LLC that everyone is talking about. You need to know what amount of money is encumbered on your project and where that money has gone. I wouldn't add more money if the project has been financed adequately already.
By: Anonymous on 3/24/08
Dewdog
Do you have any information on Doya in Paso Robles that Es Fin is trying to form an LLC on so they can borrow more money to finish – APN#025-402068? Thanks so much.
By: Anonymous on 3/24/08
Folks – thanks for the guidance. My email is arleneversaw@charter.net. I'd appreciate being included in future meetings, emails, etc. thanks.
By: Anonymous on 3/24/08
ALL WHO OUR IN DOYA PARTNERS, ON MONTEBELL OAKS DR, AND ARE ASKED TO JOIN THE RENASCENT PROPERTY HOLDING 100,LLC..LOOK OUT!!!!
The Company has been formed to acquire title to all the property located in Paso Robles on your loans No B556-04,B561-04,B562-04,B581-04,B583-04,B558-04,B570-04,B582-04,B557-04,B569-04,B577-04,B560-B563-04 and take out a new loan in your name to complete the DEVELOPMENT OF Real Property, Estate Financial is going to Rent or Lease in your name. and if Karen don't RENT them out, you well pay the new loan that well be in your name,poor Karen is only going to be making about $54000, per year on this plus all out-of-pocket organization and syndication expenses and all operating and administrative expenses of the Company.
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By: Anonymous on 3/24/08
sorry, Lot 10 is Tract 2571 is at 406 Montebello Oaks Dr.
Please no boby put your signature on 100,LLC.
By: Anonymous on 3/24/08
HELP ME:
your note on tract 2571 lot 10. WHERE IS THE PROPERTY? we have lot 6. we need to see it also.
thanks
By: Anonymous on 3/24/08
Lot 10, Tract 2571 Doya Parthners,LLC. NEW CONSTRUCTION OF A 1796 SQ FT, 4 BEDROOM, 2.5 BATH, 2 CAR GARAGE HOME. Loan Amount:317,443.00/15months, Loan to Value Ratio:70% The Appraised/Market Value:$449,000.00. Doya Partners payed $140,383.00 for the Land. Well after going to see this House it's only 1/2 compleated and there only 3 bedrooms and it's only 1500 sq ft, Now Joshua Yaguda (Estate Financial,) Wants me to join RENASCENT PROPERTY HOLDING 100,LLC. And Estate Financial Mortgage fund LLC is a Mumber and invester in and IS OVER 51% OWNER of the house, What can i do? Please call Don Vaughn at 805/226-5170 for guestions you may have
By: Anonymous on 3/23/08
I agree with you DewDog. The amount was recorded against the property. Fees and expenses taken out of loan proceeds, but money was slow to pay bills. Accounts were comingled, not segregated as it should have been. Meanwhile, time passed with no production and homes would be sitting unfinished. EFI was always eager to refi. for the additional fees and spread on the rates it paid to investors and collected from borrowers. At the same time, money sitting in bank was collecting interest to the benefit of EFI.As longh as the music was good to all, it did not matter much. Now that the property values have declined, homes sitting unfinished, (non-marketable), investors, borrowers are all screwed. The question is, where was the money, what projects were paid on time. Was it the ones EFI was involved with, or the money simply went into personal use? Sooner we dig into EFI's records the better for all concerned Giving EFI authorization to borrow against properties with investors signing on the loan docs, will only excerbate the already serious problem. Everyone must dig into EFI's dealings with all it's LLCs and ventures than just follow the money. Provided there is any left at this point. Things will get nastier as we dig deeper.
By: Anonymous on 3/23/08
ONE MORE
Saying the money was not available when needed may be true. Although if you invested your money to a particular project that money loan was put against that property. That means EF encumbered the property, let's say for the $279,500 as mentioned before, but may have only given the builder an amount of money that was less than that amount. Where is the balance of the money? If it went somewhere else that is co-mingling of funds, that's against the law. Should the property ever sell, once again using the $279,500 figure that amount will come out of escrow and go to EF and then hopefuuly back to you less costs to you know who.
You all need to immediately DEMAND a cost breakdown sheet,a disbursement of funds statement and the original appraisal from EF.
FOLLOW THE MONEY.
By: Anonymous on 3/23/08
Unfortunately, money was not available when needed, so the additional interest taxes, maint. and other cost consumed any and most equity. With the market downturn, if there woukld have been any equity, it is gone. Good luck. We all question "where is the money"?
By: Anonymous on 3/23/08
For those of you who have invested the $297,500 into homes on Montebello Oaks that are unbfinished you should act as quickly as possibel. Some of the smaller homes are less than 1500 sq. ft.. If EF was lending at a 70% LTV and the loan was a construction loan they would have had to have an appraisal of around $400,000 for the house only to come up with the $279,000 if it were for construction only. If it is for land and construction then there has to be some equity in the land prior to the loan which is good for you. If it is only for construction and the house is one of the smaller ones then there was MORE than enough money for the construction of the house. Where has your money gone. Do your homework and find out where and what you have invested in and take the appropriate action. It's your money.
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By: Anonymous on 3/23/08
To all – I am writing for the good of all. I, too, have money at EFI. I would like to compile a narrative of everyones stories concerning their investments with Estate Financial. Please write regardless of how big or small you feel your situation is and regardless if EFI has promised you they will resolve your issue soon (as they have so falsely promised me). This is strictly confidential. I feel time is of the essence here. I can help you get your complaints to the proper agencies. Your rapid response is essential here as events may be commencing next week which will significantly advance our cause – but ONLY, ONLY, if you write in!!! No I'm not a lawyer. I do realize some of you may have lawyers and feel you can't discuss your situation. That's fine, but whatever you can state, please do. This is essential to recovering as much of our investments as possible. My email address is fullyfunded93401@yahoo.com
Dewdog and Cooper: I really need to hear from you both Thanks!
By: Anonymous on 3/23/08
Anyone know how Hurst, Country Financial, Stinchfield etc are doing? Are EFI investors involved there too?
Are the fractional TD's via EFI in trouble like the bundled groups are?
By: Anonymous on 3/23/08
Should we cry or laugh? Anyone wants to have more tax deduction, just give EFI and any new LLC more money than also be hooked on additional costs. Rather, just give them money as a charity. They may need it for defense attorneis.
By: Anonymous on 3/23/08
PLEASE!!!! – DO NOT SIGN ANY OPERATING AGREEMENTS THAT WILL ALLOW KAREN TO FORM ANY MORE LLC's. SHE ONLY NEEDS TO GET THE SIGNATURES OF 51% AND THEN SHE HAS THE POWER TO INCUR MORE DEBT IN YOUR NAME. IF SHE BORROWS MONEY UNDER THE LLC OF WHICH YOU ARE A PARTNER, AND PUTS THE MONEY IN THE PROJECT, AND THEN IT DOESN'T SELL OR SHE THEN NEEDS EVEN MORE MONEY TO COMPLETE THE PROJECT, THE LLC CAN BE FORECLOSED UPON AND THEN YOU WILL BE OUT NOT ONLY YOUR INITIAL INVESTMENT BUT ALSO BE LIABLE FOR THE NEW LOAN THAT SHE TOOK UNDER THE NEWLY FORMED LLC. DO NOT GIVE HER ANY MORE CONTROL OVER YOUR INVESTMENT. PLEASE WAIT UNTIL THE DISTRICT ATTORNEY AND REGULATING AGENCIES HAVE LOOKED INTO THE OPERATION OF ESTATE FINANCIAL.
By: Anonymous on 3/23/08
HELP ME
Like I've said before you have to get these projects into your name and out of the control of EF. There may be tax and mechanical liens on the property which will add to your cost or loss which ever way you look at it. Once again go to a title company and get a title report to find out the status of the property. I would check with a contractor and find out what the actual cost to complete the project is. If I were in your position I would probably have lost any trust with EF and/or Doya. Taking control of your project will reduce your losses.
By: Anonymous on 3/23/08
I receved the operating agreement on Renascent Property Holding 100, LLC. That is Doya Partners, LLC. The homes on Montebello Oaks Dr. Article 111, The Compensation of Manager, The Manager shell receive 1% per year plus all out-of-pocket organization and syndication expenss and all operating and administrative expenses of the Company. Let's See now, If you invested $300,000. and its going to take another $100,000 to complete the house that's $400,000, 1% is $4000. plus taxis,$3000 per year, your payment on the new loan $600. p/m insurence,upkeep,$200/M and you might get $1000/M rent..Please tell me how we make any money!!! out of the deal, So please befor you put your signature on the LLC give Joshua Yaguda a call at 805-238-6570..You need to understand..
By: Anonymous on 3/22/08
Pete
Just scroll down 2 stories from this one and it will tell you how to donate.
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By: Anonymous on 3/22/08
Let's all not forget Dan and Karen. They have written some great stories and enabled many to perhaps recover their money before it is too late. I hope their efforts will not go unrewarded by the readers here. They are not making any money off this muckraking, let's help them help us by sending in some bucks. Perhaps Dan or Karen will post a note on how we can do that, I don't see any link on the site.
By: Anonymous on 3/22/08
Hello FYI, I have a loan number B557-04 its in 409 Montebello Oaks Dr, Paso Robles, The Subject Property is lot 5, Tract 2571 The loan was for $297,500.00 in Dec of 2004, The house is about 1/2 completed…John
By: Anonymous on 3/22/08
FYI
Do you have a lot#?
By: Anonymous on 3/22/08
ALL INVESTORS:
B558-04
is anyone else invested in this property? missing address and APN#. i'm also contacting EFC next week.
thanks
By: Anonymous on 3/22/08
DEWDOG:
thanks for the info. back of construction d of t there is an APN: but no APN. i know, don't say it. i will get it next week.
By: Anonymous on 3/22/08
FYI
Many properties come up for Doya Partners on Kleck Rd. although there is no loan information attached to the properties. But if you go into the MLS system and run the APN they come back to addresses on Montebello Oaks. The photos show the house uncompleted at different stages although the homes have been on the market for over 1 1/2 years. The last time I drove by that area I did see several homes that were in the framing stages and appeared to have been sitting and wasting away. Look again at your paperwork and see if you have anything that identifies the property where you think your money went. The APN'S start with 025-601 or 602 and are followed by a number for the lot.
By: Anonymous on 3/22/08
DEWDOG: doya partners. site in paso robles. that's all i have. i'll get more from ef.
By: Anonymous on 3/22/08
Folks are posting to both blog sites. Makes keeping up with things a pain.
If no disagrees how about placing new posts here (under the latest article (Update) from Dan and Karen)?
A few folks are submitting their contact info, I suggest that is a good idea so we can all keep in touch.
My e is rikik77@gmail.com.
By: Anonymous on 3/22/08
DEWDOG: more info. the property in on Kleck Road, paso robles. tract 2571.
By: Anonymous on 3/22/08
place me on your team.
whwn is the next meeting?
805 975 7505
By: Anonymous on 3/22/08
FYI
I can't track loan number but if you can give me a project description for loan ie: address or APN I'll try to find something out for you.
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By: Anonymous on 3/22/08
FYI Why don't you just caqll me and ask me about the meeting that i did not have with Estate Financial on Tuesday or give your number out so we could talk to you.
805/610-6331
By: Anonymous on 3/22/08
DEWDOG: any info. at dataquick on the doya partners property that efc created a new llc on? B558-04
By: Anonymous on 3/22/08
DEWDOG: any info. at dataquick on the doya partners property that efc created a new llc on?
By: Anonymous on 3/22/08
any info. on the LLC., that was just created by EF on investment B311-04?
By: Anonymous on 3/22/08
where is john/colleen childers.
what happened at the meeting with karen guth thursday?
By: Anonymous on 3/22/08
Hi Arlene, my name is John and i have the Damartin loan also in Bermuda dunes. you may call me 805/610-6331 or email me at bluesky41144/@yahoo.com
By: Anonymous on 3/21/08
Arlene, and others. You may have noticed your email address does not show up here unless you put it in the body of your message. Those who want any personal feedback will have to do that. The add-a-comment dialog box clearly points out your email will not be displayed automatically.
By: Anonymous on 3/21/08
I am invested in DAMartin project in Bermuda Dunes. Anyone else out there? Please contact me by email. I would also like to be included in future meetings,emails, etc. Thanks much.
By: Anonymous on 3/21/08
whereismymoney
If the APN for your investment is 049-104-019 DataQuick shows 2 loans made on the property on 1-16-2008. $306,750 for a construction loan and an aditional $50,000 for "unknown" reasons. You may want to check your paperwork and determine where your money was directed towards. Also go by and see if there is a house on the lot and determine if it is completed or not. There are several homes that are not completed.
By: Anonymous on 3/21/08
More internet sites
Ca Dept of Corporation search:
http://kepler.sos.ca.gov/list.html
By: Anonymous on 3/21/08
whereismymoney
If the APN for your investment is 049-104-019 DataQuick shows 2 loans made on the property on 1-16-2008. $306,750 for a construction loan and an aditional $50,000 for "unknown" reasons. You may want to check your paperwork and determine where your money was directed towards. Also go by and see if there is a house on the lot and determine if it is completed or not. There are several homes that are not completed.
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By: Anonymous on 3/22/08
FYI Why don't you just caqll me and ask me about the meeting that i did not have with Estate Financial on Tuesday or give your number out so we could talk to you.
805/610-6331
By: Anonymous on 3/22/08
DEWDOG: any info. at dataquick on the doya partners property that efc created a new llc on? B558-04
By: Anonymous on 3/22/08
DEWDOG: any info. at dataquick on the doya partners property that efc created a new llc on?
By: Anonymous on 3/22/08
any info. on the LLC., that was just created by EF on investment B311-04?
By: Anonymous on 3/22/08
where is john/colleen childers.
what happened at the meeting with karen guth thursday?
By: Anonymous on 3/22/08
Hi Arlene, my name is John and i have the Damartin loan also in Bermuda dunes. you may call me 805/610-6331 or email me at bluesky41144/@yahoo.com
By: Anonymous on 3/21/08
Arlene, and others. You may have noticed your email address does not show up here unless you put it in the body of your message. Those who want any personal feedback will have to do that. The add-a-comment dialog box clearly points out your email will not be displayed automatically.
By: Anonymous on 3/21/08
I am invested in DAMartin project in Bermuda Dunes. Anyone else out there? Please contact me by email. I would also like to be included in future meetings,emails, etc. Thanks much.
By: Anonymous on 3/21/08
whereismymoney
If the APN for your investment is 049-104-019 DataQuick shows 2 loans made on the property on 1-16-2008. $306,750 for a construction loan and an aditional $50,000 for "unknown" reasons. You may want to check your paperwork and determine where your money was directed towards. Also go by and see if there is a house on the lot and determine if it is completed or not. There are several homes that are not completed.
By: Anonymous on 3/21/08
More internet sites
Ca Dept of Corporation search:
http://kepler.sos.ca.gov/list.html
By: Anonymous on 3/21/08
whereismymoney
If the APN for your investment is 049-104-019 DataQuick shows 2 loans made on the property on 1-16-2008. $306,750 for a construction loan and an aditional $50,000 for "unknown" reasons. You may want to check your paperwork and determine where your money was directed towards. Also go by and see if there is a house on the lot and determine if it is completed or not. There are several homes that are not completed.
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By: Anonymous on 3/22/08
FYI Why don't you just caqll me and ask me about the meeting that i did not have with Estate Financial on Tuesday or give your number out so we could talk to you.
805/610-6331
By: Anonymous on 3/22/08
DEWDOG: any info. at dataquick on the doya partners property that efc created a new llc on? B558-04
By: Anonymous on 3/22/08
DEWDOG: any info. at dataquick on the doya partners property that efc created a new llc on?
By: Anonymous on 3/22/08
any info. on the LLC., that was just created by EF on investment B311-04?
By: Anonymous on 3/22/08
where is john/colleen childers.
what happened at the meeting with karen guth thursday?
By: Anonymous on 3/22/08
Hi Arlene, my name is John and i have the Damartin loan also in Bermuda dunes. you may call me 805/610-6331 or email me at bluesky41144/@yahoo.com
By: Anonymous on 3/21/08
Arlene, and others. You may have noticed your email address does not show up here unless you put it in the body of your message. Those who want any personal feedback will have to do that. The add-a-comment dialog box clearly points out your email will not be displayed automatically.
By: Anonymous on 3/21/08
I am invested in DAMartin project in Bermuda Dunes. Anyone else out there? Please contact me by email. I would also like to be included in future meetings,emails, etc. Thanks much.
By: Anonymous on 3/21/08
whereismymoney
If the APN for your investment is 049-104-019 DataQuick shows 2 loans made on the property on 1-16-2008. $306,750 for a construction loan and an aditional $50,000 for "unknown" reasons. You may want to check your paperwork and determine where your money was directed towards. Also go by and see if there is a house on the lot and determine if it is completed or not. There are several homes that are not completed.
By: Anonymous on 3/21/08
More internet sites
Ca Dept of Corporation search:
http://kepler.sos.ca.gov/list.html
By: Anonymous on 3/21/08
whereismymoney
If the APN for your investment is 049-104-019 DataQuick shows 2 loans made on the property on 1-16-2008. $306,750 for a construction loan and an aditional $50,000 for "unknown" reasons. You may want to check your paperwork and determine where your money was directed towards. Also go by and see if there is a house on the lot and determine if it is completed or not. There are several homes that are not completed.
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By: Anonymous on 3/21/08
INVESTOR at ESTATE FINANCIAL?
Do you want to find out more information regarding documents filed with our Clerk Recorder’s office?
http://services.sloclerkrecorder.org/officials/se...
* In Grantor/Grantee Type in your name first to get familiar. Then type Estate Financial, Karen Guth, Signature Homes. Under document type, try assignment of deeds and other stuff.
Do you want to find out more information regarding Foreclosures?
https://www.fidelityslo.com
* Second item over, Foreclosures (Notice of Defaults), This site is arranged by week
If you are familiar with the search, type in Estate or the street name of the project.
THERE IS A WEALTH OF INFORMATION AT YOUR FINGERTIPS
By: Anonymous on 3/21/08
dewdog,
I am an investor(loser)on Oak Grove Doya/Atascadero project lot #19.
Estate Financial has told me in writing that they are doing a deed in lieu of on this property and getting the new outside financing to finish the project.
Your blog says there is already new financing in place as of January 2008?
Can you give me specifics?
By: Anonymous on 3/21/08
Could that be the fearless leader? Josh
By: Anonymous on 3/21/08
Industry guy is giving good advice. Each project has to have ALL of the investors agree on what action is going to be taken and have 1 representative for their cause. If there are a large number of investors this could be difficult to impossible as everyone is probably being affected differently and may want to take a different approach to solving the problem. The main concern of everyone now should be to gain control of your investment and recover as much as possible. Every project should have some equity that is salvageable. Leave the threats and lawsuits until later and go after your $$$$$.
By: Anonymous on 3/21/08
Everybody that is thinking that it would be better to take this company down, becareful what you ask for. EFI is in a much better position to solve your problems than you are. They need help and time, not lawsuits and 3000 investors calling them everyday. I have watched 21st groups fail time after time to solve their problems and all they do create more turmoil. They put the wrong people in charge of their groups and waste time and money. The groups in almost every situation can not agree and fracture. There is not enough quailified people to guild these groups through the resolution process, and even if there were, nobody wants to pay them for their time and efforts. The mob mentality has to be avoided.
I truley believe that if this group put as much effort into helping EFI solve their problems rather than creating them, they would realize a much better return on their money and get it back sooner. Again, becareful what you ask for.
By: Anonymous on 3/21/08
dewbog, your right on..please give me a call.
610/6331
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By: Anonymous on 3/21/08
INVESTOR at ESTATE FINANCIAL?
Do you want to find out more information regarding documents filed with our Clerk Recorder’s office?
http://services.sloclerkrecorder.org/officials/se...
* In Grantor/Grantee Type in your name first to get familiar. Then type Estate Financial, Karen Guth, Signature Homes. Under document type, try assignment of deeds and other stuff.
Do you want to find out more information regarding Foreclosures?
https://www.fidelityslo.com
* Second item over, Foreclosures (Notice of Defaults), This site is arranged by week
If you are familiar with the search, type in Estate or the street name of the project.
THERE IS A WEALTH OF INFORMATION AT YOUR FINGERTIPS
By: Anonymous on 3/21/08
dewdog,
I am an investor(loser)on Oak Grove Doya/Atascadero project lot #19.
Estate Financial has told me in writing that they are doing a deed in lieu of on this property and getting the new outside financing to finish the project.
Your blog says there is already new financing in place as of January 2008?
Can you give me specifics?
By: Anonymous on 3/21/08
Could that be the fearless leader? Josh
By: Anonymous on 3/21/08
Industry guy is giving good advice. Each project has to have ALL of the investors agree on what action is going to be taken and have 1 representative for their cause. If there are a large number of investors this could be difficult to impossible as everyone is probably being affected differently and may want to take a different approach to solving the problem. The main concern of everyone now should be to gain control of your investment and recover as much as possible. Every project should have some equity that is salvageable. Leave the threats and lawsuits until later and go after your $$$$$.
By: Anonymous on 3/21/08
Everybody that is thinking that it would be better to take this company down, becareful what you ask for. EFI is in a much better position to solve your problems than you are. They need help and time, not lawsuits and 3000 investors calling them everyday. I have watched 21st groups fail time after time to solve their problems and all they do create more turmoil. They put the wrong people in charge of their groups and waste time and money. The groups in almost every situation can not agree and fracture. There is not enough quailified people to guild these groups through the resolution process, and even if there were, nobody wants to pay them for their time and efforts. The mob mentality has to be avoided.
I truley believe that if this group put as much effort into helping EFI solve their problems rather than creating them, they would realize a much better return on their money and get it back sooner. Again, becareful what you ask for.
By: Anonymous on 3/21/08
dewbog, your right on..please give me a call.
610/6331
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By: Anonymous on 3/21/08
INVESTOR at ESTATE FINANCIAL?
Do you want to find out more information regarding documents filed with our Clerk Recorder’s office?
http://services.sloclerkrecorder.org/officials/se...
* In Grantor/Grantee Type in your name first to get familiar. Then type Estate Financial, Karen Guth, Signature Homes. Under document type, try assignment of deeds and other stuff.
Do you want to find out more information regarding Foreclosures?
https://www.fidelityslo.com
* Second item over, Foreclosures (Notice of Defaults), This site is arranged by week
If you are familiar with the search, type in Estate or the street name of the project.
THERE IS A WEALTH OF INFORMATION AT YOUR FINGERTIPS
By: Anonymous on 3/21/08
dewdog,
I am an investor(loser)on Oak Grove Doya/Atascadero project lot #19.
Estate Financial has told me in writing that they are doing a deed in lieu of on this property and getting the new outside financing to finish the project.
Your blog says there is already new financing in place as of January 2008?
Can you give me specifics?
By: Anonymous on 3/21/08
Could that be the fearless leader? Josh
By: Anonymous on 3/21/08
Industry guy is giving good advice. Each project has to have ALL of the investors agree on what action is going to be taken and have 1 representative for their cause. If there are a large number of investors this could be difficult to impossible as everyone is probably being affected differently and may want to take a different approach to solving the problem. The main concern of everyone now should be to gain control of your investment and recover as much as possible. Every project should have some equity that is salvageable. Leave the threats and lawsuits until later and go after your $$$$$.
By: Anonymous on 3/21/08
Everybody that is thinking that it would be better to take this company down, becareful what you ask for. EFI is in a much better position to solve your problems than you are. They need help and time, not lawsuits and 3000 investors calling them everyday. I have watched 21st groups fail time after time to solve their problems and all they do create more turmoil. They put the wrong people in charge of their groups and waste time and money. The groups in almost every situation can not agree and fracture. There is not enough quailified people to guild these groups through the resolution process, and even if there were, nobody wants to pay them for their time and efforts. The mob mentality has to be avoided.
I truley believe that if this group put as much effort into helping EFI solve their problems rather than creating them, they would realize a much better return on their money and get it back sooner. Again, becareful what you ask for.
By: Anonymous on 3/21/08
dewbog, your right on..please give me a call.
610/6331
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By: Anonymous on 3/21/08
Ron
I'll give you a call. My credential are equal to yours
although with an additional 5 years experience, primarily in the North County. I have advised many clients regarding these hard money loans and have save my clients from many of the pitfalls that many are suffering now. These are only my opinions and for the most part are the facts of what is going on. This is my 3rd exposure to a "down market." Let me just say that the other 2 didn't even come close to this one. The bottom line is there have been too many homes built, bad loans made, short sales, foreclosures, hard maoney frauds which all lead up to where we are. People are losing their jobs, cost of living is going up and it has become very difficult to get a home loan. Most of the market for buyers has been used up and many will be loosing their homes. The economy is going into the the pits. Sorry for the bad news but that is what it is.
I think it boils down to whether you want to lose a little bit of money now or much more later on because there is no quick fix to this one.
By: Anonymous on 3/20/08
dewdog: I'm surprised you are giving us all this advice and are hiding behind a blog name. I've got 25 years in the real estate development business and adamantly disagree with most of the conclusions you have draw in your many many comments.
Most importantly I'd like to know who is giving me advice. So how about contacting me by phone or email so we can talk directly. Regards, Ron Cooper
By: Anonymous on 3/20/08
Hofie-
Each case needs to be addressed on its own merit. An example would be if a project was funded for $500k and it's completed. It then needs to be priced a market value, let's say $400k. In that case the investors have lost 20% of their initial investment. But depending on how much you have earned on interest payments the loss may not be that bad. If the property is kept in the developers name he will probably not sell it for this amount and there may be mechanical and or tax liens that would have to be paid. Also EF may still be drawing their management fee. If you foreclose, EF is out of it, the mechanical liens may disappear and the problem is now under your control.
If the project is not complete but has been fully funded why would anyone poor more money into it. Example would be if the project was fully funded, let's say $500k again, and it's going to take $100k to finish it, your in it $600k and still can only sell it for $400k. Now the loss is 33%.
If you do finish the house and rent it out you will have ongoing insurance, tax and maintenance costs. There will probably be a flood of these projects that will be rentals which will consequently lower the income from rentals. My estimate for a recovery is 2-3 years to see daylight and maybe 5 years for recovery. The house will still be worth $400k although you have supplemented someones rental cost, lost the use of your money and have gained nothing but be put in a position of trying to sell a 5 year ols house that has been a rental. I would recommend trying to get rid of it as soon as you can and rid yourself of the problem and reduce your licks to a minimum.
By: Anonymous on 3/20/08
Dewdog:
Many of EF's developments have not been completed. If EF is not in the picture the investors will need to hire an attorney and foreclose, and will end up with properties that have not been completed with fees for foreclosure, attorneys, taxes, management, etc.. I have been told that EF is moving ahead with foreclosures and plans to form LLC's so that funds can be generated to complete developments with no additional investor cost. After homes have been completed they can be rented or leased until a time when the properties can be sold. In either case the return of principal to investors is long term. Investors will need to determine if EF's LLC's are right for them.
By: Anonymous on 3/20/08
EFI misreprented itself to builders not only to investors. EFI charged interest on nonexisting funds.
I hope there will be another meeting next week, so I can attend. EFI has several lawsuit filed against including Joshua Yaguda and Karen Guth individually. EFI's problem is bigger than most individual can see it at this time. FRAUD FRAUD FRAUD
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By: Anonymous on 3/20/08
Ms. Guth/Mr. Yaguda:
We trusted you when we invested with Estate Financial. Now, all we are asking for the name of all investors in the projects we are invested in. WHY WON'T YOU GIVE THEM TO US?????
By: Anonymous on 3/20/08
to JB:
the payment was a mortgage fund payment, not an individual TD
By: Anonymous on 3/20/08
HOFIE
You have 2 things going on here, one being YOUR investment and the other is the actions that EF have done. My priority would be to attend to my investment. I would suggest the following:
1.Do a physical inspection where your money is invested and ascertain if the money was actually spent as it was represented to be spent.
2.Obtain a preliminary title report and determine who the other investors are. The report will also show any liens that may be against thr property.
3.If the project that you invested in appears to be completed I would attempt to gather the other investors together and foreclose on the property and get it into your names.
4.Come to terms that you are probably going to lose some money. But if the property is back in your names you can determine if you want to sell it at a "give away" price in todays market and regain some of your investment. If you have been getting interest payments in the past along with whatever you gain from a sell your loss may be minimal.
THESE ARE ONLY SUGGESTIONS. I WOULD RECOMMEND THAT YOU OBTAIN THE SERVICES OF A GOOD REAL ESTATE ATTORNEY.
As far as the actions against EF it looks like that could possibly be a class action suit.
Good Luck
By: Anonymous on 3/20/08
Three Bells,LLC a California Limited Liability Company, is in DEFAULT,FORECLOSURE AS OF 12/12/07 FOR $6199,929.07. not just the 3,665,720.00 that Signature Homes,LLC By Al D Amico and Third Press Partners,LLC BY Karen Guth, The BORROWERS,took out. SO where has the extra money $2,534,209 gone to????
The word on the vine!!! is that Big Al and Karen Guth have used that money on personal gains.
By: Anonymous on 3/19/08
Ladies and gentlemen. There's a storm brewing. We need to keep up with it and lead it to Estate's front door. I want to have a follow up meeting next week. We can probably expect three to four hundred people.
Who can help me arrange this – place, advertising, etc. please email me ron@cooperdevelopment.com or call (818) 225-1528 ASAP. Thanks
By: Anonymous on 3/19/08
Anyone wishing a copy of the November 5,2007 letter I received from R. Rodewald, EF's attorney, advising me that I faced "significant legal liability" if I contacted other investors and questioned the viability of Estate Financial please contact me at mjk122085@aol.com
By: Anonymous on 3/19/08
Investors: Be aware properties aren't being insured. Injured people can sue you individually. Property taxes aren't being paid. Is Estate waiting for tax sale to wipe us out.
By: Anonymous on 3/19/08
Hoffie: Estate's LLC plan is probably the worst concieved plan possible. Estate can borrow against your interest and take "discretionary" fees. Then, if and when the project gets built out, the lender and Estate get paid first, and you get the left overs. If there are any. Estate didn't mange your money properly the first time – what makes you want to let them borrow money and miss-manage it again. There are other solutions. If you want to talk about them call me at 818-225-1528 or email me at ron@cooperdevelopment.com
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By: Anonymous on 3/19/08
DEWDOG:
If you know a way to get my investment returned now I would like to know about it. It appears to me that EF's plan to formulate LLC's and then generate funds to complete projects is a viable approach. What is your plan?
By: Anonymous on 3/19/08
three bells B193-06 project.
any info. on the wine permit that's going to expire in a few months?
By: Anonymous on 3/19/08
are there statutes of limitations on these properties?
By: Anonymous on 3/19/08
HOFIE
If you are now not getting paid and there is no money now where do you think it will be coming from. In my opinion, 30 yrs. experience and this being the 3rd time around with something like this, the real estate market is just at the beginning of its fall. I don't think there is going to be anyone chasing "bad money" with "good Money."
Take the bull by the horns and go after what is left of your investment if there is anything.Your dealing with some real slick operators.
By: Anonymous on 3/19/08
john childers is meeting with karen thursday.
By: Anonymous on 3/19/08
paso guy–$192. payment, what loan number?
By: Anonymous on 3/19/08
We, the investors of Estate Financial, need to be careful. Are we in a better position having attorneys put EF out of business OR having EF working to resolve porblems with our investments? EF has informed me that they have a plan for resolution of each of my investments.
By: Anonymous on 3/19/08
Please ammend the foreclosure firm Don Vaughn owns to ALL AMERICAN FORECLOSURE SERVICE of San Luis Obispo; not American Foreclosure as in my previous message.
By: Anonymous on 3/19/08
I'm a Fund investor in Estate Financial. Please keep me in the loop on all activity surrounding Estate Financial.
By: Anonymous on 3/19/08
Anyone who has money invested at EF that is marked for Doya Partners in Atascadero may want to check their paperwork. Most of the homes were "financed" on 1-16-08 by EF. This appears to be a recent transaction per DataQuick which could be in conflict with what is currently happening. Information only.
By: Anonymous on 3/19/08
re: conflicts of interest.
Any investors encountering problems with DON VAUGHN owner of COUNTRY FINANCIAL INC. in Paso? Same DON VAUGHN that introduced himself as a consultant for Estate Financial at Mondays EF meeting. He also failed to disclose that he owns American Foreclosure in SLO.
Interesting that Mr. Vaughn spoke on behalf of EF when Mr. Vaughn has his own share of problems in communicating with investors and the mishandling of a note that Country Financial services for us.
Anyone else have Country Financial Problems ?
Is Uncoveredslo.com aware of and investigating ???
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By: Anonymous on 3/19/08
What a mess for the workers and contractors. I hope all those who have lost money get it back and if fraud is present then those responsible do some serious time.
I urge all concerned parties to hang tough and fight for their rights. Organize around Ron or others to combine your energy. An email list for bulletins would be very helpful.
For those who invest in other firms you might ask those firms for some assurance they are not acting like EF in their affairs. I'm doing that and will post the results here.
By: Anonymous on 3/18/08
where is my money. I am the person who organized and spoke at Monday's meeting. I could use your help as everybody at the meeting wants to get the information too. Please email me at ron@cooperdevelopment.com or call at 818-225-1528 at your earliest opportunity. WE NEED YOUR HELP. Thanks.
By: Anonymous on 3/18/08
I have 11 loans with Estate
Financial and they are not providing me with the information I need. I want to organize the other investors so we can take control and action to save our investments. Estate Financial continues to collect their monthly fees for doing nothing on our behalf. They have taken money and used it on their own property development.
They will not file notice of defaults because they will be
foreclosing on their own property! Too many conflict of interest issues for me to accept.
Lets organize.
By: Anonymous on 3/18/08
Anonymous
If your name is not on the Title you probably have a problem figuring out where your money went.
If you put your money in a "pool fund" it may be a little more difficult to trace. Any paperwork that you have recieved from EF should have identified what project your money went to. The property should be identified by an address or an APN (assessor parcel number). If you have one let me know.
By: Anonymous on 3/18/08
The prelim for the mortgage pool reflects the recorded document number for the assignments of deed trust. Go the the SLO Clerk Recorders site and enter the doc number. You should get names.
By: Anonymous on 3/18/08
And if a prelim Title report does not include the names of all EF investors, what then?
By: Anonymous on 3/18/08
Preliminary Title reports on properties should itemize the investors with EF. Each investor should be listed with a dollar amount invested and the corresponding percentage of their investment in the property.
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