Risks and Business Model

DBSI is probably going bankrupt. It no longer has a sales business. They are left with a property management business. When they offered the NNN lease guarantee they had an upside in managing the properties: they profited from rent increases. Now that they have defaulted on the NNN lease, there is no upside potential. My guess is that they probably won't want to want to manage several hundred properties at the going property management rate.

Since our property is in the black they have taken the money they owe us--whatever amount that is above expenses--and have done...what with it? My guess is they have made an intercompany loan so as to use the funds to shore up some other part of their business. Since there is a good possibility they are going bankrupt, we will lose that money owed us.

Of course the bigger threat is that they have not paid the mortgage.

I think we need a lawyer to represent us. We need to get control of the books and the bank accounts ASAP.