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UPDATE: Estate Financial investors fighting back

March 18, 2008

Investors, builders and attorneys squeezed into a large, sunny conference room at a beautiful, ocean-side hotel earlier this week to talk about something most found unpleasant: How they were going to recoup millions of unaccounted-for dollars placed with Paso Robles lender Estate Financial.

(See previous UncoveredSLO.com article, “Hard money lending schemes creating fiscal chaos, devastating SLO County investors,” March 14 on this site.)

There were more than 200 people at the hastily-called meeting, many from San Luis Obispo County, and most around or well into their retirement years. The meeting was organized by Ron Cooper, a Los Angeles County contractor, to attempt unifying concerns and potential action of varied interests. A series of speakers representing contractors, other borrowers, and investors told of problems and posed solutions.

“I was blown away by all the people,” Cooper said following the meeting. “The point of my presentation was to show that my records and books are open, so why in God’s name are Karen Guths ‘s (Estate Financial’s president) records and books not open.”

Cooper and those investors in his project who attended the meeting agreed to give Guth 48 hours to produce names of other investors in his development. Then, the group plans to ask the SLO District Attorney’s Office to step in. If the District Attorney refuses to take action, the group’s strategy is to talk to the state Attorney General.

“I don’t care about putting Karen Guth or her son (Joshua Yaguda) in jail,” Cooper added. “I just care about getting my money back.”

Estate Financial Vice President Joshua Yaguda sat near the front of the meeting wearing sunglasses, silently declining comment when invited.

EDITOR’S NOTE: Investors, builders and others who believe they have been exploited by questionable hard money lending practices are welcome to use the comment section of this post and the previous post to communicate and connect.

Tags:, EFI, Estate Financial


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By: Anonymous on 4/7/08 [Delete]

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 [Delete]

new karen guth beach house purchase with your investment money–

38-7th street cayucos, calif.


By: Anonymous on 4/6/08 [Delete]

barbara– good work–what were the lies?


By: Anonymous on 4/6/08 [Delete]

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 [Delete]

FYI the loan number was 576-05 Pierce Monte Vista


By: Anonymous on 4/5/08 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

vince–the $20,000. what loan number?

thanks


By: Anonymous on 4/5/08 [Delete]

For those of you who don't know, there is a new blog running about Estate Financial at this link


http://uncoveredslo.com/?id=89&showEntry=1


By: Anonymous on 4/4/08 [Delete]

Gary,

I have a piece of both loans B518-05 and B105-06. The existing offer to purchase covers both these loans. According to the loan documents they are separate parcel numbers. B518-05 is APN: 005-152-03 and 105-06 is 005-152-06 I am speculating that they are contiguous. Call or email me if you have compelling information that would influence my vote to sell or not. I can think of several reasons to sell now and take the offer. If EFI gets taken over by the district attorneys office or the state attorney general, it could be several years before we see any money from this project. That's just how the bureaucracy works. You can reinvest the 60% and get income from it now. You will have a tax write off for 2008 so the government could eat up to 37% of your losses. No this is not the ideal situation but it is something. Vince sales@aitcoc.com 831 594 1381


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By: Anonymous on 4/4/08 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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


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By: Anonymous on 4/2/08 [Delete]

Truman;


Soon, for now just be patient. Things are hapening. Soon you'll learn and spread the word to other investors


By: Anonymous on 4/2/08 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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


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By: Anonymous on 4/1/08 [Delete]

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.


By: Anonymous on 4/1/08 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

Carol B:


No it is not illegal.


By: Anonymous on 3/31/08 [Delete]

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 [Delete]

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 [Delete]

Does anyone know if it is illegal to purchase property with the construction loan?


By: Anonymous on 3/30/08 [Delete]

Ron, check your email. Jill wrote you.


By: Anonymous on 3/30/08 [Delete]

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.


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By: Anonymous on 3/30/08 [Delete]

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 [Delete]

Has there been any new articles written about this situation?


By: Anonymous on 3/28/08 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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.


By: Anonymous on 3/26/08 [Delete]

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!


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By: Anonymous on 3/26/08 [Delete]

I mistakenly used the workforce housing value in the prior calculation instead of the moderate value.


By: Anonymous on 3/26/08 [Delete]

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 [Delete]

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 [Delete]

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 [Delete]

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."


By: Anonymous on 3/25/08 [Delete]

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 [Delete]

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.


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By: Anonymous on 3/25/08 [Delete]

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 [Delete]

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 [Delete]

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.


By: Anonymous on 3/25/08 [Delete]

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 [Delete]

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 [Delete]

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?


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By: Anonymous on 3/24/08 [Delete]

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 [Delete]

Dewdog,

Thanks for trying.


By: Anonymous on 3/24/08 [Delete]

Why bother with the DA?

It takes someone from the outside, not even State agencies.


By: Anonymous on 3/24/08 [Delete]

Seems that all the loans are from 2004. HWhat hapened since than?


By: Anonymous on 3/24/08 [Delete]

Seems that all the loans are from 2004. HWhat hapened since than?


By: Anonymous on 3/24/08 [Delete]

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 [Delete]

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 [Delete]

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.


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