All Forum Posts by: Mark Whittlesey

Just got a call from Shaun. He was not making any excuses and understood my situation. We will be tele-conferencing weekly until the situation is resolved. I do appreciate his getting personally involved and am optimistic that this situation can be resolved to my satisfaction. 

Echoing what Debbie said.. My last note has now been "extended" for a 3rd time. (I have rejected every extension by DocUSign but that seems like a complete waste of time.) 

If it pays off in March, it will be 15 months past due. Im getting 10% a month. The interest is still being paid. Every month I get an update on my investments that says Im getting 12%. No, Im not. (My return was reduced when I failed to roll over some funds and my total investment with EB/EBF dropped below some magic number).

The 2 previous loans that I had with EB/EBF, the excuse was the issue with their contractor ripping them off. So that set both projects back. Not the case with this one. (Originally I was told there were NO problems with this property and it would pay off on time. Nope.) I think it's just bad management. There is a different excuse every X months.

The "no more buyout" stance is correct. Even the 5% haircut for a buyout that I was once offered is now off the table. They are now offering something like 15 or 16% to put together a fund or something. All new funds will be going there NOT to take care of current investors. I still do get marketing emails from them once a week or so. When I asked for a call about one of those, John Allred did call me but he didnt even know which deal I was talking about. I guess they have so many marketing emails going out you need to tell them which specific deal you want when they call.

Of course.. as mentioned, it's free money. Also, there are major tax advantages. Finally, there is a diversification factor. I dont see any reason for me not do invest.

Not sure how much more recent you want. My most recent update in that thread was from March when one of the loans I had out paid off.  

What exactly are you wanting to know? If you ask some specific questions, I may be able to give you better answers based on my experiences.

I just updated this thread:

https://www.biggerpockets.com/forums/92/topics/167678-equity-build-finance-llc

Latest update. 1 of the 2 loans I had left with EB did pay off. It ended up paying off 50 weeks after the maturity date. But I did eventually get my principle back. 

I have 1 more loan with them. It is now 4 months past maturity (was supposed to pay off December 2016). I am still getting monthly interest payments. The most recent "update" that I have is that the expected refinance/payoff date is September 2017. (That would be 9-ish months after the maturity date.) I do believe I am on the buyout list for this loan as well since I have never accepted an extension.

@Nathan Diones What sort of cap rate are you seeing in San Bernadino and how is the tenant base in terms of crime, turnover etc?  What do you mean when you say working with the right peopel? Thanks.

"I've checked out loopnet.com but did not see how I could extract pertinent property info without a (costly) membership fee."

You can. Just contact the listing broker. They will give you the financials you need in order to analyze the deal. There really aren't that many, depending on the size of the deal and structure of the complex. Rent roll on one side. Half a dozen to a dozen expenses on the other side.

@Monique Rene Coates I dont remember exactly what I invested with them at first.. I think maybe the min of 50K. I know I have 87K and 50K with them now. And it was around 150K that I had to move out from a soured deal last year. If you are going to invest with them, you should definitely ask what interest rate you will get if you invest $XX dollars. They have tiered interest rates based on how much you invest. I am not sure what the tiers are.

I am getting 10% now (My statement of account from them says my portfolio yield is 12%.. but Im not geting paid that). They lowered the rate I was getting because I had to move a chunk money away from them because the deal soured. (Long story but it was a borrower "requirement" so I could get my money back about a year ago.)

I did just find out this morning... because I asked.. ... that my other note will NOT pay off on time. 

I currently have 2 notes with them. "In theory", they will both pay off in the spring 2017. That would make one about 12 months late, the other 3-4 months late. As far as I am concerned, this makes them both in default since I declined every note extension.  (One of the problems was because of terrible mis-management over a contractor from a year ago. I am not sure exactly what the problem is on the other one; from this morning's email it sounds like a lag in lease ups.)

I have asked repeatedly for a conference call or email blast with the other investors on the note but that never happened. I have no idea what the other investors' thoughts are or what they want to do. Maybe they are just happy keeping the interest payments rolling. Because the interest has been paid so far. Late in the month. It's the 25th and I don't have October yet. September was received on the 30th.

So if you invest with EB/EBF, just understand that the maturity of the note doesn't mean that you will actually get your money back then.

Also, I don't know what your recourse is if you aren't happy with that and want your money back when the note matures.  "In theory", you can get your position bought out. I have been on the buy out list for at least 6 months for the note that was due April 2016. EB/EBF suggested that I take a haircut on my loan... 8% if I recall correctly.. to make it more attractive to another investor.  I declined to do so. Get an attorney I guess? Contacting EB/EBF does not seem to help.

Let me know if you have any other questions.. 

@Jay Hinrichs Yea, I get it,. I did see the requirement for CA miortgage brokers, Unfortunately, the agreement includes a  clause stipulating Illinois law prevails. I couldnt find much online about Illinois. I may call the state tomorrow. 

Thanks again