It’s been awhile since I’ve written an update.   Even now it’s difficult to think of just what I can write.  I am not privy to what’s going on at Loomis and don’t want to speculate.   From what I am hearing, good news is just around the corner — but frankly, I’m past the point where words are going to do anything for me.

Speaking only of my experience, and not trying to get folks to draw conclusions one way or the other.

My mortgages for Feb. weren’t paid until the last day of the month.   If I’d have known that ahead of time, I wouldn’t have been happy, but I wouldn’t have been scared.   However, it came on the heals of a friend having a mortgage actually paid past 30 days late — payroll of friends who work for Loomis had been late….and my assurance payment for Feb didn’t get paid until just right before the insurance automatically takes it’s money from my account.

As such — I went out and traded in my 13yr old car and 7yr old minivan for new/near new cars.   Sounds odd, but I thought I was facing the ruining of my credit and wanted to get reliable vehicles while I still had excellent credit and low rates.

As I said, though — the mortgages were paid and things were looking up.

In March — I received notice that a lein was being placed on my home because one of my properties has never had it’s condo association fees paid.  My assurance payment was not paid — and the insurance took it’s money — so we’re actually out money for the first time since being part of Loomis.  And once again, the mortgages aren’t paid until the end of the month.   Which if you KNOW they will be paid is bad but not that bad – but the WONDERING IF they will be paid is no fun at all.   ?Received a call from one of the mortgages April 1st that March’s payment had not been made.   Turns out it had, by FedEx on March 27 — but there was some confusion as the loan had been sold from one bank to another and the first bank had been paid (late) and it just hadn’t gotten through to the new bank.   Not Loomis’ fault — other than paying so close to the margins in the first place.

The uncertainty involved has led me to request the return of my NARAS funds.   When I put the money in, I was told that $30,000 would be avialable on 3 days notice — and that more time would be needed to get the rest.   I was also told that the money in the NARAS funds was not used by the business, but was purely invested in real estate.  It was at risk, but real estate doesn’t fall to zero value.    Well, shame on me for not reading what I signed — even if it’s a half inch thick.   Turns out the money isn’t “liquid” at all.   They have 90 days to return your money — AND — they can use the money for running the business “from time to time”.

Knowing that the company was having cash flow issues, I was fairly sure they wouldn’t get my money to me in 3 days.   It was an opportunity to see how the company would respond in a tough situation.   I wish I could report “well done” — but instead — I have yet to hear an official acknowledgement of my request.   I emailed the head of the NARAS fund with my request.   I followed that up with a phone call.   I followed that up with another email.   I have talked on the phone and emailed no less than 5 other people at Loomis including Lee Loomis himself.   I have yet to hear back in an official manner when my money will be returned to me.   It has even been suggested that if my money isn’t in the NARAS fund, that I won’t be able to buy more properties.

This is my experience.   I have been told that Loomis has closed a record number of homes and that new members are joining all the time and the cash situaiton is turning around.   I am hopeful of better times to come.   There has been a lot of turnover at the company, and that’s challenging for any organization.   We have monthly conference calls and it sounds like great things are afoot.

I’ve tried to be careful in how I’ve written this update.   You really can’t make conclusions one way or the other from anything I’ve said.   It simply is what it is.

PoorDad