Thursday, October 30, 2008

Everyone, this is a temporary restraining order - I'm not sure how long it's effective for?
Anyway, this is only the first major hurdle in taking control of this asset out of DBSI hands. With this restraining order, DBSI will still control the funds, but will be required to maintain all funds and expenses in a separate account, court supervised.

We need to seek damages associated with DBSI for using monies generated from this property to pay there other expenses - e.g. potentially our tax, insurance, expenses. Also, damages for not paying TIC owners.

We need to find out where the tax monies are - in escrow, and how much is escrowed currently. The lender, well fargo, may be requiring escrow of taxes on a monlthy basis. If so, we'll need cooperation from DBSI, the lender, to verify that we have the taxes covered.

We need to go down to CB Richard Ellis, in Cary, with the court order, and demand all maintenance records associated with the property. CB Richard Ellis may or may not be retained as the property manager depending on their level of cooperation.

Lastly, we will need to build a reserve fund to cover for vacancies and unexpected expenses. I think DBSI has diverted funds generated for this purpose from our property over the last year or so. SO, there probably isn't a reserve fund anymore. To build a reserve fund we are all going to have to pitch in - this may mean no TIC owner payments for several months, management of the property as cheaply as possible, cheaper insurance, etc..

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