I urge everyone to email priority@iirrms.com and let them know that hitting low FG bids on its own (intentionally?) defaulted loans is not an option, because they could have closed Decatur without a rent reduction negotiation (which the franchisee wanted) and staged the construction cost issue so they could force this very outcome. I also urge that you tell them to come up with a solution that would preclude FG from translating our losses into their profits. I have already done so.
I think suing RS directly is a lost cause. I don't know what would be left in that shell at this point, but it could easily just file bankruptcy to avoid all legal action. That's why I think we need to focus on sharing our views with the JV, which is running the FG recovery process now (with the old RS workout people still there, I believe).
I wrote a very stern email to the priority email that was set up and to the former CEO and current asset managers that an easy way out and a way that benefits the FG screw ups would not be accepted. I have invested significantly amounts of $$ into RS and into FG deals... I would be willing to look at legal advice/options if anyone has good ideas. maybe go after the FG losers if they have assets?
I agree and willing to participate as well. It's not just the FG deals. I am seeing evidence that RS and possibly the new management are taking the easy way out all non-performing deals. I have several non FG deals, and RS asset management is letting the original borrower doing the same crap as FG without challenaging them.
Here is the email and response from the Former CEO.
I also got the same generic Response from Eric Sullivan about the distributions..etc.
"Alexis
I recently received notifications that there would be substantial losses to some of the FG deals.
It seems the transition team is trying to take the easy way out and possibly sell the loans to the FG guys who totally
Screwed this up in the first place
I have written to the priority email that’s something that is opposed by many investors and will lead investors to consider all options.
I have been in discussion with many of the investors who are involved in the FG deals.
I urge you to talk to the transition team to be more diligent on handling this.
This is a bad situation and we need to look at the best way out, and definitely without benefitting the
FG sponsors who may have set this up to fail in the first place and at this point have major legal liability."
His response:
"Thank you for the email.
IIRR MS is handling FG Asset Management in continuity with RealtyShares and I have no reason to believe that the transition to IIRR Management Services has lessened any pressure on the sponsor.
Best regards,
Alexis"
My response:
"Thanks Alexis.
I appreciate the prompt response.
I received an email From Eric Sullivan this am who is going to look into this.
ALL investors are watching the development on the FG situation very closely.
There is strong feelings among the investors that criminal activity/negligence
on the part of the FG sponsors precipitated this situation.
Thanks"
I suggest We chip in and hire a lawyer who can dig up the details on the finances for the FG and RS folks to see what are our options.
If anyone knows someone who does that kind of work, I'm open to have that option in place.