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Investors, Tenants, Potential Tenants, Contractors - BEWARE - this company and it's ownership should be avoided if you value your investments, good credit and personal or business security. Here are a few reasons, please feel free to do your own research - JUST BE SURE YOU DO - Lance Puig and York Street Properties, York Street Homes, York Street Investments and the numerous LLC's this organization operates under have caused 100's thousands of dollars of loss, 100's of wasted hours and countless heartaches for good people:
1) Debts and returns on investment are not honored in a timely fashion, if at all.
2) If you're tenant don't believe if you rent a home expecting to buy it that you ever will. It's a false promise - ask existing tenants.
3) If you're an investor; don't believe you are getting a safe, reliable, well maintained investment - ask past investors.
4) If you're a contractor; don't give this company or Lance Puig any credit - he does not pay.
5) Don't believe what you read on the website(s), in blogs or on radio shows. Icons are unauthorized, statements are false & exaggerated.
6) Don't believe mortgages (in your name) will be paid or debts for services will be paid - they won't be.
Here's a few examples of fact:
a) There are numerous lien filings, small claims filings and court filings against this company and Lance Puig. The subjects are wide
ranging (non-payment, fraud, etc). He gets contractors to remodel houses, then doesn't pay them - $1 Mil of examples cab be given
b) Investors have lost their investments due to non-payment of mortgages.
c) The BBB has not been paid and the "Online Accredited Business" icon is misleading at best.
d) The numerous bank links on the website are being used without authorization.
e) The claim that Lance Puig comes from 3 generations of real estate investors is pure embellishment.
f) Lance Puig hires people in the Philippines to write comments and compliments in blogs. They are not real.
g) An leading figurehead of the company and personal advisor to Lance Puig is an federal ex-con:
http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&FirstName=MICHAEL+& Middle=&LastName=BACHER&Race=U&Sex=M&Age=&x=79&y=8. This shows in everything they do, Lance Puig just hasn't been
imprisoned - yet.
h) Lance Puig/York Street Properties is not a member of the TAA or local apartment assoc. That makes all leases signed with the TAA
lease agreements invalid. According to law, the tenant has a right not to honor agreement/no legal protection for investor.
i) A majority of properties remain vacant because they're in bad, un-leasable condition. The company is broke.
j) Houses are purchased at REO prices (50%), then sold to investors for 90% with minimum remodeling to justify that price.
k) Resale, should the investor be faced with that, is impossible at 90% - not to mention the probable liens on the property.
l) The 40% profit (j, above) is used to support Lance Puig's unjustified lifestyle and foreign online labor (paid at $5/hour).
There are many cases of fraudulent and/or misleading business practices utilized by Lance Puig and York Street Properties, et al. Do you homework before doing any sort of business with this man or his companies. Better yet, why take the risk? In today's economy it's difficult enough to make your hard earned dollars and credit work for you - why add dealing with a broke, unscrupulous and unethical partner to the mix? Don't believe what you read - Lance Puig is a professional at making things look one way, when his representations don't paint the real picture. Last reports have he and his family hiding in their house to avoid process servers.
Do your homework - there's too much to list here - don't leave any stone unturned if you need to prove to yourself that investing with Lance Puig/York Street Properties is a bad move. Don't leave any stone unturned before deciding to do business of any sort with this man and his companies - and if you do; get your money in advance - get your own attorney to verify all contracts - be sure you are protected to minimize loss when the "good faith agreements" are inevitably broken.
I am a Dallas based investor who also works full-time to support my family. I see opportunities all over town and began looking into companies/persons that I could partner with. In my initial searches; Lance Puig, York Street Properties and York Street Homes came up frequently. So I started looking into the company.
My research included the BBB, banks, appraisers, court filings, looking at York Street Properties houses for rent, talking to a couple of renters/aspiring buyers, company employees (they like to talk - disgruntled, earnest or otherwise), County Sheriff's (process servers), a few of the individuals that had posted complaints on the internet, amongst others.
What I discovered motivated me to publish a few of the things I found out. Perhaps then, any hard working investor or company thinking about providing services to Lance Puig and companies would have a place to start their own research (so that an informed opinion and decision could be made on their own). The facts are easily verifiable.
Would I like to reveal my name in this forum? NO THANK YOU. After my first posting I was able to confirm that Lance Puig had allowed homes and investments of friends, business colleagues and family (including his mother) to be foreclosed on due to non-payment of mortgages. That's in addition to the numerous people he has already destroyed. Disregard for the lives, security and well being of people doing business with Lance Puig seems to be a recurring theme. Would I like to subject my family, home personal security to potential harm needlessly - NO! - my finding do not warrant that sort of trust in Mr. Puig. What I found was chilling.
Perhaps an earlier poster, Reidar Klaumann, has a good idea. It's possible that the State Attorney General would be interested in the financial affairs of Mr. Puig. I, however, do not have an actionable claim as I made a decision to stay away from his dealings. Here's contact information for those interested. There seems to be a lot of people harmed or mislead, perhaps a group effort would offer some protections or satisfactions:
http://www.oag.state.tx.us/
Attorney General Greg Abbott: greg.abbott@oag.state.tx.us
Main agency switchboard [protected]
Consumer Protection Hotline [protected]
I'm an above average earner, family man and hard working person trying my best to cope (if not profit from) the bad economy our nation, state and community faces. It's a time to work together, not work against one another. This also includes sharing information that could help fellow community members avoid a potentially hurtful situation. There are numerous credible facts available (as stated in my first post) and the focus of attention should be on those facts, not attacks on yours truly - which is what several of the above posters have decided to do (or perhaps one poster - Lance Puig using different names). Check the facts; check with BBB, check with TAA, talk to numerous service suppliers, contact tenants in York Street Properties homes, verify county records, speak with banks, there are many channels for credible information.
Our country is a beautiful place; we can express our opinions and make decisions freely. The internet and regulatory agencies make it possible to discuss, interact and take appropriate action. For me, I am walking away from Lance Puig and companies. For the parties already harmed, they may like to "band together" and act as they see fit. I hope this forum and my postings help somebody.
Good Luck and Best Regards,
Dallas Investor
READERS HAVE ASK "WHAT IS A PONZIE SCAM ?"
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually offers returns that other investments cannot guarantee in order to entice new investors, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.
The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.
Amigo Air can count themselves as one of the very fortunate ones. That leaves more than $600, 000 to go, just with debts to contractors!
Got questions on how HVAC contractors are paid? Contact Mr. Cool, American Mechanical, United Mechanical and many others that have registered complaints with various court systems in the Dallas Metroplex. Their contact information and complaints are readily available... better yet, contact York Street Properties for that information - they have 100's of pieces of correspondence from these companies... though probably discarded, just like investor, tenant and aspiring buyer complaints.
I was asked to re-post the prison record link of Michael Bacher. I hope this works for you:
http://www.bop.gov/iloc2/InmateFinderServlet?Transaction=NameSearch&needingMoreList=false&FirstName=MICHAEL+&Middle=&LastName=BACHER&Race=U&Sex=M&Age=&x=79&y=8
For all who don't know, Michael Bacher is a long time employee and adviser to Lance Puig.
A BLOG POSTED BY SCOTT LEONARD ON http://themaxonshow.com/2009/01/13/lance-puig/:
QUOTE...
Scott Leonard
Your comment is awaiting moderation.
September 1st, 2009 at 2:32 pm
BM,
That’s very nice that you would stick-up for your boss. Fact is, however, the man is crooked and these statements are about the VERY REAL sums of money that he’s swindled. These aren’t empty accusations, these are facts.
If you’ve been a party to the scam of York Street Properties, you and your family should know that you/they are eating while others are suffering and not eating because of the actions of the company you work for.
I know, you must think we’re rich Americans and can afford it. But we can’t. We also cannot survive and prosper when our credit ratings have been ruined by you scam.
As far as talking is concerned – that’s a joke – victims of the scam including investors, tenants and service providers have send 100’s of emails and left countless telephone messages, which have never been returned.
If the company you work for is honorable it will pay its bills. It’s as simple as that. Touting what a great company this is and what a successful business plan it has doesn’t work with an intelligent audience. Look at your REAL accounts payable, look at the investors properties that have been foreclosed on, look at your boss cowering in his house to avoid process servers, talk to the tenants that have bursting sewage pipes in their house, talk to the tenants that were promised they could buy their homes (not a single promise fulfilled).
If Lance Puig is going to go on radio talk shows, he should expect recourse from all the folks that have supported him in past, but lost. You, ultimately, will lose too. If you care about your family, you’ll lead your life honorably and begin looking for a new job.
There’s nothing false in what’s been said. If what you think is true, then get an AUDITED financial report for your company(s) and present it! If it’s REAL, you’ll be startled at what you see.
...UNQUOTE
In response to a post made by BM:
BM
August 28th, 2009 at 2:04 am
I have been working for YSP for almost 2 years now. Before YSP I been dealing with a lot of outsource company and most of them don’t pay and if ever they do the salary is really low. We are getting a lot of bonuses here and YSP is very generous to us. So I was shocked when someone is saying that YSP is not paying – that is so untrue. There might be a delay for other vendors cause there is a process they need to do before releasing money but they still get their pay.
Without YSP I will not be able to support my Family. We are 8 kids in the family and imagine how YSP can help me to survive our everyday expenses. We help people we make their dreams happen it cannot happen overnight but still we make it happen.
I am not saying all these because I am working for YSP, I am saying this because this is really what is happening. Almost every day I talk to Lance, I can see how he wants to make things better for other people. I know his intentions are all good… he also have a family don’t forget that. He cannot please everyone here but he doesn’t deserve all this bad comments. If you have problems with YSP it’s much better to talk to us and solve the issue than spreading false accusation.
BM
I would agree with point 3 of the Investors comments above. It's highly unlikely that Puig has enough liquidity to pay his bills and with lawsuits that have already been filed and will be filed, it's highly unlikely he will ever pay anybody back.
What's intriguing are the "empty threats" he's making by saying "if you speak up in public I can guarantee you'll never get any money". It's really a silly comment to make, for obvious reasons. (A) If he wants to shut somebody up, just pay them. (B) The courts will decide who gets paid the way things are going, not Puig and his "machinery" (C) As Reidar Klaumann said (above), if the press releases are true and York Street Properties is "strong", then why doesn't Puig hire somebody who can successfully negotiate with the parties who claim injury and debt?
Lacking an action similar to point C, above, Puig appears to have nothing to say and no place to go. Bankruptcy will not quell the criminal complaints. Indeed that will just throw gasoline on the fire. He and his convict "ex" have gone too far.
For what it's worth, I got the same letter from Joseph M. Nathan by email. It went into my spam box and will stay there. What a waste of time.
Michael, I'm really sorry to hear about the troubles you and your family have gone through as a result of York Street Properties. Please know that there are scrupulous investors doing business in Dallas. I have need for a good HVAC Technician from time to time. Please send me an email and I'll contact you next time the need arises.
I have contacted the Specialized Crime Unit and explained the investment scheme that was presented to me. The Dallas County DA's office need more information - please contact them directly or through your legal representative !
I thought the newsletter was excellent. I especially liked this part:
ILLEGAL PROPERTY FLIPPING; is the most common form of mortgage fraud, involving false appraisals and other fraudulent loan documents (US Attorney General, quote)…
ILLEGAL PROPERTY FLIPPING EXAMPLE:
• Perpetrator/house flipper buys a house for $40, 000.
• House flipper has the house illegally appraised for $160, 000.
• House flipper sells house for $160, 000 to a straw buyer who obtained a 80% loan of $128, 000 giving the perpetrator a profit of $88, 000.
• House usually results in delinquency, default, or foreclosure.
• The bank/financial institution is left with a $128, 000 mortgage on a $40, 000 property for a loss of $88000.
• Please see comment by Kendra Appraiser: Lance Puig + York Street Properties — False Representations + Payment Scam
Wade - thanks very much for that post! A particular post by "Tom Burris | FHA VA & Conv. Texas Mortgage Loans (DallasLoanGuy.com)" caught my attention. He said " I haven't seen any of these lately. But at a prior place I worked, we had a couple. Both were averted with a lender field review of the appraisal".
It's my opinion (and a respected local Attorney), that Lance Puig went to specific Lenders that wouldn't do a review of the appraisal. If one Lender disageed with the value he would go to another. We also feel that Lance Puig started to have serious troubles with his scam when Lenders began requiring an "appraisal review" or use of their own Appraisers. Until then, "fraudulent operators" like Lance Puig could more easily manipulate all parties involved to facilitate the scam and mortgage fraud.
Investors definitely didn't have control and evidenced by:
1) Lance Puig chose Lender who wouldn't scrutinize the loan documents [for honesty] too carefully.
2) Lance Puig chose Appraiser (whom he controlled or colluded with).
3) Mortgage payments not made by owner.
4) York Street Properties is not a Property Manager and collected all funds illegally.
5) Tenant leases falsely showed York Street Properties as the owner rather than the "Investor/Straw Buyer".
6) There's much more, but those facts should be revealed in Court rather than here, in public.
Thank you "Wise_Broker" for your input. Your remarks actually give credibility to statements made previously and also in this weeks newsletter.
To summarize; the majority of Investors and others were swindled prior to regulatory and lending institution processes being revised. To combat escalating cases of mortgage fraud more vigilance was necessary to protect financial institutions, as referenced in the efanniemae article you provided.
Points 1 & 2 are actually correct. However, as sited in the newsletter, the new controls (referenced in the article you provided) have greatly reduced mortgage fraud and ponzie scams perpetrated by people like Lance Puig. As testament to that fact, severe cash flow problems for operators such as York Street Properties began in early to mid 2009 (as Investors, Lenders, Service Providers, Tenants and others have testified).
Thank You for your input and the positive information that action is being taken to avert future financial disasters at the hands of operators like York Street Properties. As many very wise people have stated "self regulation by industry has not provided enough controls in past, obviously". The new thinking - increased controls combined with prosecution of past and future offenders is welcomed - particularly by members of this group !
I was contacted by a very nice young lady this afternoon. She told me about all the websites, lawsuits, conversations and latest news.
More to the point, she asked if I needed help with filings or anything else to deal with Lance Puig. I thought that was absolutely fantastic and I offered all the information I could provide. I don't know York Street Properties investors but I'm happy to hear that somebody is looking for them and planning to put together a teleconference soon. Thanks for doing that, I really got a lot out of the conversation !
Wade, your comment on page 8 looks like it will be coming together. I was asked to send an email to yspvictims@gmail.com and identify whether I was and Investor, Tenant, Service Provider or Other in the subject line. It would be a great idea if everybody reading this blog could do the same thing - it would make it easier for the organizers to sort the mail.
Again - Thanks !
THANKS FOR THAT. YOU ALSO MIGHT LIKE TO READ THE BOTTOM OF THE PAGE (/URL removed/) ... AFTER GIVING FAIR WARNING AND ALL THE REASONS WHY A LAWSUIT AGAINST [redacted] IS SILLY:
Comment: I Know the CDA (Communications Decency Act, 47 U.S.C. § 230) Protects [redacted], But I Am Going to Sue Anyway!
If you have read all of the above information and still want to file a lawsuit against us, there are some other points you need to know.
First, Rule 11 of the Federal Rules of Civil Procedure, and each state court's rules, generally require that all pleadings, including initial Complaints, must be presented in good faith, after a reasonable investigation into the facts and the law, and not made for an improper purpose such as harassment. What this means in plain English is that if you file a lawsuit which you know contains false claims, or if you sue without first conducting a reasonable investigation as to the law as it may pertain to the facts of your case (such as determining the identity of the author of the report(s) you are concerned about), you and/or your attorney can be subject to serious sanctions at the judge's discretion. Many who have sued settled with us and some have paid some or all of our attorney's fees. Other times we have defended the cases for years running up large legal bills for both sides. Either way, we never paid out a dime in settlement or damages to anyone who has sued us.
In addition to penalties a judge may issue, those who would threaten us need to be aware of another law which imposes civil liability on anyone who files a frivolous lawsuit. This claim is known as "wrongful use of civil proceedings" and it is defined by § 674 of the Restatement (Second) of Torts as follows:
(a) he acts without probable cause, and primarily for a purpose other than that of securing the proper adjudication of the claim in which the proceedings are based, and
(b) except when they are ex parte, the proceedings have terminated in favor of the person against whom they are brought.
Because [redacted] is immune from liability under the CDA for defamation-based and related claims, any suit that seeks to impose liability for the speech of our users is, by definition, an action brought "without probable cause". We encourage the prompt and fair resolution of disputes between [redacted] authors and those who are the subject of [redacted]s. However, [redacted] wants to be clear that it accepts no liability for the speech of its users, and it will vigorously defend any litigation brought against us which seeks to circumvent the CDA. In addition, any suit filed against us without probable cause may subject the complaining party and/or their attorneys to liability in the State of Arizona for wrongful use of civil proceedings. We don't mean to sound harsh, but if you knowingly file a frivolous lawsuit against us, regardless of where your case is filed, you and/or your lawyers can be subject to a lawsuit in Arizona in which a jury could, if appropriate, award both substantial compensatory and punitive damages against you.
Finally, you need to be aware that if you file a lawsuit simply to harass us, not only will this not work, it will very likely end up being EXTREMELY expensive for you. Due to the number of meritless cases we have had to defend, [redacted] has adopted a very strict policy about lawsuits -- once [redacted] is forced to appear in a case, it will not stipulate to a dismissal of the case unless the party who filed the action agrees to pay [redacted]'s attorney fees. There will be no exceptions. If you conduct a thorough investigation BEFORE you sue and you believe you have a valid case despite the CDA, it is your right to pursue your case and prove it in court. However, once you file a lawsuit, be prepared to either take it all the way to a decision on the merits or pay [redacted]'s attorney fees because [redacted] will not stipulate to a dismissal without compensation.
Terri - great question. It's highly unlikely that [redacted] will release the information and will also fight the lawsuit with the typical zeal they are famous for. Pushing this to a "higher level" as Lance Puig has done will only increase pressure on him and cost legal fees (money he could be using to pay people).
It's really a rather silly effort. There are over 1000 readers, with over 7000 hits on the complaintsboard blog now. It appears that many people are making comments on numbers of other websites + other real estate fraud websites are beginning to reference this case on their sites. Does Lance Puig really believe he can "quash" the huge number of victims from speaking freely on every website in the US (and world)? If so, then he's a lot less intelligent than even this group gives him credit for.
His disagreeable efforts only increase the level of complaints voiced and written. Agreeable efforts on his part - REAL ONES, BACKED WITH REAL MONEY - is the only way to get what he wants.
Great job by all who have or will send letters to the attorney! That list of claims that Lance Puig made is amazing... he's actually refuting that; he's been robbing Peter to pay Paul, he's paid all legitimate debts, hasn't frustrated debtors, his remodeling isn't substandard, investors haven't lost money or credit, houses have been lost to repossession, vacant properties are in poor condition, his repair and reimbursement system is substandard and York Street Properties investments are unreliable?
Semantics... and a vision that's purely the fantasy of Lance Puig's mind.
Chin - all investors should be as thorough as your firm. Perhaps there would be far fewer unscrupulous operators in business.
As you may know, this Group has approached numbers of citizen action committee's, media and other victims groups. One of there is called TexasVox "The Voice of Public Citizen in Texas": http://texasvox.org/. It's a good group doing meaningful things for Texans.
Tonight they're having a "hoe-down" at the Barr Mansion in Austin. If you're close you might like to stop by. See you there!
MOTION TO COMPEL RELEASE OF NAMES OF ONLINE AUTHORS DENIED.
Lance Puig has been telling everybody that "his lawyers" will take care of the authors on sites like /link removed/ complaintsboard.com and others... yeah right ! When facts are published why would the courts side with a cheap tactic put together by York Street Properties?
In a decision dated November 18th, 2009 the Honorable Edward O. Burke of the Maricopa County Superior Court stated "Plaintiffs' Motion to Compel Third-Party to Disclose Identity of John Doe is DENIED IN ITS ENTIRETY". CV [protected].
Lance you lost and this is a sign of things to come for you. The sad part is that you used other peoples money to file this lawsuit rather than just dealing with people openly and honestly. Your efforts to hurt people that say negative (and true) things about you is not the honorable approach to solve your problems. Paying people the money you owe them is !
Our "hats are off" to David Gingras and /link removed/ - they fought for our 1st amendment rights and won!
Bankruptcy of York Street Properties will not protect the personal assets of Lance Puig when Mortgage Fraud and other acts of fraud are proven.
To all vendors and ex-employees: Please send proof of fraud to: yspvictims@gmail.com
This is a great way to get the ball rolling again. Lance Puig has performed criminal acts and deserves to have his ill-hearted actions follow him for a lifetime. We are here to see that it does, no matter where he is.
The complaint has been investigated and resolved to the customer’s satisfaction.
I did some research of my own and found if you go to whitepages.com and type in Lance Puig it gives you an address of 903 Trellis Cir Garland, TX [protected]. If you go to the Dallas tax records and type in the address of 903 Trellis Cir
Garland, TX [protected] it brings up 400 properties that have been recently put into a trust called DEUTSCHE BK NATL TRUST CO . If you just type in Deutsche it will bring up all 400 records. Apparently he is trying to protect his properties by putting them into a trust fund so they can't be touched. Either these are his dad's properties or these are his. Whosever they are they are worth millions and millions of dollars. I found this to be very interesting.
Hi Fellow "YSP Victim".
As we all know, Lance Puig and York Street Properties failed to pay mortgages. We also know that he collected rents and did not forward them to the investors or the lenders (banks, mortgage companies, etc). As a direct result of these actions many properties were foreclosed on.
Typically, DEUTSCHE BANK NATIONAL TRUST COMPANY, did not serve as a single lender for residential properties in the United States (they're a Germany financial institute with worldwide companies and branches).
However, they have been purchasing large amounts of properties that were foreclosed on in the United States - principally at auction. I don't know the specific details of this property, but if it's similar to other investors properties, the bank foreclosed on the house and then sold it at auction, where Deutche Bank National Trust purchased it (and put in REO status).
There is certainty that Lance Puig has hidden assets, however, you might be giving him too much credit for stashing 400 houses :-).
Keep up the GREAT investigations - it helps us all !
Here's a couple of links to give some credibility to my thoughts on the subject:
http://www.db.com/usa/ and http://www.db.com/index_e.htm
Wow, I can’t believe the comments written here. How come many of the people commenting here are not writing their real names? Why do they have to keep it anonymous? It sounds like someone is out to get Lance Puig and his company and whoever that person is, is really doing a very good job at it.
My name is Karen Gomez and I am a general contractor based in Dallas. I have worked with Lance for three years now (since 2006) and he has always been a nice guy to deal with. He is pleasant and even gives me good advice about business and personal concerns. If the allegations are true (which I really doubt), then I am lucky to have always been paid on time. I not only consider him a client but a very good business man. I don’t know where all the other accusations are coming from. But based on my experience with him and his company, they always make sure that the house repairs are done right and that I get the payment that is due me and my company.
More power to Lance Puig and York Street Properties!
Karen, your posting is dubious at best. Please send a copy of your contractors license to: yspvictims@gmail.com.
I agree - there seems to be a number of fabricated contractors that make positive postings. I've been at many of the York Street Properties houses and always make it a point to talk with the contractors and sub-contractors. IF Karen Gomez is real, she will send you a copy of her contractors license.
In ALL my discussions with contractors, either they weren't getting paid. A standard line for York Street Properties is "we need to get this house remodeled, appraised and sold to get money so we can pay you" - so like a team player the contractors have paid for supplies, paid their workers and finished the job... However, Lance Puig does not pay them or pays them a fraction of what's promised. Sooner or later the contractors leave or don't get any more work because they want payment.
The history of screwing contractors is painfully real and HISTORY DOES REPEAT ITSELF in the case of York Street Properties.
Fake contractors, York Street employees, Lance Puig - whoever you are - your postings are amusing but dishonest. WHY DON'T YOU SPEND THE TIME WRITING CHECKS TO THE PEOPLE YOU OWE MONEY TO RATHER THAN WRITING THIS BS?
Hello Fellow Victims of York Street Properties and Lance Puig,
While we would hardly give Lance Puig credit for being a Bernie Madoff, fellow members who have written to yspvictims@gmail.com have suggested that we contact the folks at http://bernardmadoffvictims.org/ for support. While Lance Puig's Ponzie Scam is not stock related the website owners have graciously agreed to help us put an end to Lance Puig's classic real estate ponzie scam through grants and publicity channels they have at their disposal.
It is requested that victims of Lance Puig, York Street Properties, York Street Homes and the various other corporations/LLC's write a story detailing their experiences. Please send to yspvictims@gmail.com, we will package these stories together and forward them to bernardmadoffvictims.org for review and action. Please also note that they may assist with legal assistance as well.
Best Regards,
Bill Hunt
I was rolling on the floor laughing when I read this google search on York Street Properties today. Perhaps Lance Puig's fairy godmother is going to bail him out? :-) :-) :-) :-) :-) :-) ... you think she might get our credit and money back too?
York Street Properties Inc. Remains Strong Despite the Economic Crisis
1 Sep 2009 ... York Street Properties Inc. Remains Strong Despite the Economic Crisis. In the face of the current global economic conditions, when the rest ...
FOR BEST CARPET DALLAS,
a) 100 Crescent Court is a bogus address - I've been there too
b) 10810 Bushire Drive, Dallas is Lance Puig's home address. Edith is the unfortunate wife. 2 kids.
c) 3424 Gillespie, Dallas appears to be a family investment of some sort. Perhaps it can be attached.
d) Holly Puig is the mother. Serving her may prove interesting - she also works for Lance part time.
Collectors need to just "camp out" at Lance's residence and be "courteously aggressive". This was the only thing that worked for another contractor friend of mine - he managed to get some money. As mentioned in an early post, Lance hides-out when process servers arrive and has his wife and kids do the same. Lot of guts this guy has! He won't deal with creditors or take any steps to solve his dishonest acts - would rather have his family hideout! Disgusting ! GOOD LUCK & PLEASE LET US KNOW HOW YOU DO !
Thanks CC - looks like I'll be bringing my buddies, some carpet to sleep on and a rod & reel to fish out some cash while I'm at it! :-)
What do you suggest for us investors that live out of state. We don't have the option to go camp out and harass him until he gives us the money. Email and phone is pretty much all I can do. I can't even afford to hire an attorney at this point unless several of us went in together and got a class action lawsuit.
It's been a couple of years since I called the jerk, but his cell# used to be [protected].
THIS IS A COPY OF AN EMAIL SENT TO yspvictims@gmail.com FROM THE BETTER BUSINESS BUREAU IN DALLAS. YOU ARE STRONGLY ENCOURAGED TO FOLLOW HER SUGGESTION. IF YOU ARE FEARFUL OF PERSONAL OR PROFESSIONAL SAFETY, MENTION THIS IN YOUR COMMUNICATIONS, THE ATTORNEY GENERAL HAS ASSURED THAT ANONYMITY WILL BE RESPECTED
You can contact the Texas Attorney General at [protected] or through their Website:
http://www.oag.state.tx.us/.
I hope this information is helpful.
Regards,
Diana Goddard | Senior Communications Analyst
Tel: [protected]
Fax: [protected]
Email: dianagoddard@dallas.bbb.org
www.bbb.org | Start With Trust
Better Business Bureau of Metropolitan Dallas, Inc.
1601 Elm Street, Suite 3838
Dallas, TX 75201
I know one of you were talking about trying to get the word out on TV. Maybe someone could contact Dateline NBC. They always do stories and investigations on scams. Also, if your local TV station has a whistle blower hotline you could have them do an investigation and air the story.
Also, if we contact the attorney general, how will they help us? I'm not really familar with what their office does.
Excellent idea on the TV coverage. Has anybody contacted local Dallas channels? Please start to tell the rest of the group what you've done. This is important.
As far as the Attorney General's office is concerned. Here's some website quotes and links:
CONSUMER PROTECTION (http://www.oag.state.tx.us/consumer/index.shtml)
The Attorney General for the State of Texas protects consumers and the legitimate business community by filing civil lawsuits under the Deceptive Trade Practices Act and other consumer protection statutes. Consumer Complaints filed with this agency may form the basis for an investigation into a company's business practices. In some cases, significant numbers of complaints about a business may give rise to legal action, not on behalf of the individual complainants but to enforce state law.
FRAUDS AND SCAMS (http://www.oag.state.tx.us/consumer/scams.shtml)
Every day, Texans lose money to scams and frauds. It happens in more ways than you can imagine. Decent, intelligent people are duped out of their life savings by smooth-talking, utterly unscrupulous crooks. These are people who will look you in the eye and lie.
FILE A CONSUMER COMPLAINT (http://www.oag.state.tx.us/consumer/complain.shtml)
You can file a Consumer Complaint with the Office of the Attorney General online or by filling out a printable form and mailing it in. Please read the instructions below carefully. We also suggest you read about the complaint process and about other options that may help you successfully resolve your complaint.
The Chief Compliance Officer at the Better Business Bureau suggests the following person be contacted at the Texas Attorney General's office.
Ms Kelle Slaughter, Investigator
kelleslaughter@oag.state.tx.us
Thank You for that information. I have called Ms. Slaughter and sent a follow-up email with documents. They will probably want more from me, but also stressed that more complainants should contact their offices to make an action decision easier for them. It was mentioned that if/when they take this case on, it will be for violation of applicable laws and that portion of the action WILL NOT COST YORK STREET PROPERTIES VICTIMS ANY MONEY - only your information will be needed. This will make civil suits used to make claims for restitution MUCH simpler.
Cool Lady - if you've been scammed by York Street Properties and Lance Puig - call her. I also found out that there is another Dallas investigator working on this.
Hello,
CERTIFICATIONS
I’m a Certified Residential Real Estate Appraiser and State Licensed Real Estate Appraiser. Using those licenses, I worked for a company (owned by a State Licensed Real Estate Appraiser) who appraised the majority of York Street Properties (hereinafter “YSP”) single family homes. This will be long (and simplistic to some) but I hope to explain the appraisal process and how it was/is used by YSP.
FEAR FACTOR & TESTIMONY
My real name will not be used (at this point) for fear of jeopardizing my career. Additionally, I have no idea what Lance Puig is capable of and don’t want to risk my family’s safety. However, I am willing to testify in court and/or give depositions to proper authorities if TALCB (Texas Appraiser Board and Certification Board) will take my full cooperation into consideration. I will communicate contact details to the Moderator of this blog under separate cover. My motivation is morally driven compounded by a strong desire to see the appraisal profession regain its stature as a respectful and important part of the economy.
PRESSURES AND THREATS
In addition to a close relationship with the owner of the firm I worked for; Lance Puig threatened to stop doing business with us and not pay a large balance owed if we did not appraise houses for the values he suggested when appraisal orders were placed. These pressures continued throughout every appraisal with constant requests to have the appraisal complete within 48 hours of the order being placed and also using photos taken by YSP.
A LAYMAN EXPLANATION - APPRAISAL
The purpose of an appraisal is to establish a value, used by financial institutions, based on Uniform Standards of Professional Appraisal Practice, training and experience. In the case of York Street Properties, all that mattered was the ARV (Appraised Retail Value OR After Repair Value). Our firm normally did 2 appraisals for each property – the first to estimate what the value would be after repairs and the second to confirm it. With this basic understanding and the knowledge that financial institutions and [YSP] investors rarely view the properties, it’s much easier to understand the critical role of an appraisal to the “paper process”.
APPEARANCE OF FACT
Every Appraiser in our office complained about the values we were being pressured/threatened to use. However, we were overruled by the company owner on every occasion. We went along with it at the time, for 2 reasons: (a) we wanted to keep our jobs and (b) the company owner signed all appraisals and confirmed the values that YSP had given (plus guide them on the photos that were to be used in the appraisal). The standing joke with Lance Puig and YSP employees was that “they didn’t sell houses, they sold paper” and also that “they didn’t remodel houses, they put lipstick on a pig”. In short, they didn’t sell facts; they sold the appearance of facts. Let me explain that statement (or paint a picture) in the following paragraphs.
VALUATION & PROFIT – A REAL LIFE EXAMPLE
This is an example of how Lance Puig generates cash, from the purchase and sale of properties that we appraised. The numbers were documented to me by a knowledgeable source:
$ 48, 000 – Purchase price of property ($100, 000 ARV given at YSP instructions)
$ 70, 000 – Loan given by financial institution (70% of ARV). Based on ARV appraisal.
$ 22, 000 – The “house buying profit” for YSP ($70, 000 loan less purchase price)
$ 90, 000 – Sale price to YSP investor after remodeling (90% of ARV)
$ 20, 000 – The “house selling profit” for YSP ($90, 000 sales price less $70, 000 loan amount)
$ 42, 000 – TOTAL GROSS PROFIT TO YSP
$ 2, 000 – Closing costs (non-recoverable)
$ 5, 500 – Remodel costs (IF the Remodel Contractor was paid, which many weren’t)
$ 35, 000 – TOTAL NET PROFIT TO YSP
In my skilled opinion, this house should have had an ARV of $62, 000 (at the most) after the incomplete remodel job. That means the house had an over inflated value by at least $38, 000, with closing costs, and $40, 000, without closing costs (which is normal). The rental value was also inflated proportionately.
THE REMODEL PROCESS
This process is guided and strictly controlled by Lance Puig, directly. The Appraisers in our office, the company owner and even the Contractors that I’ve spoken with have complained about the extremely poor remodeling standards of Lance Puig. Small modifications have been made over time due to urging by these parties, but the directive is to “only do what’s absolutely necessary to make photos appear the house is worth the ARV”. In this case, $100, 000.
EXTERIOR: The front of the house is landscaped, painted only where necessary – and sometimes only the front door. Occasionally shutters are put on the windows and foundation cracks in brick are covered-up. A key code front door lock is installed. Foundation problems are never fixed.
INTERIOR: low grade carpet is installed; thin cheap water base paint is applied to walls that will be photographed. Old range/dishwashers are replaced with refurbished appliances. Ceiling fans are put in (cheap way to enhance photos). Every other part of the house is done to bare minimum standards. Many times the water, gas and electricity is not turned on so; plumbing, AC, heat and other systems requiring it are not tested until the unsuspecting tenant moves in.
Lance Puig expects the remodeling to be done in 3 to 5 days from initially buying the house. Hardly enough time for a quality remodel job. 80% of the time our Appraisers showed-up to fill a final appraisal order and the house wasn’t complete and workers were still there. That’s how anxious Lance Puig was to get our second appraisal! Every Contractor we ever spoke to was not happy with the remodel result, but defended their work as Lance Puig’s specific instructions. Some felt so badly about the quality that they contributed their own money and time to fix things that YSP refused to pay for.
IN SUMMARY
Now, we have a house with an over-inflated value that was poorly remodeled and certain to pose future maintenance problems. However, the 4 to 6 photos in the appraisal looked good, as did the appraisal document itself.
LOSERS AND WINNERS – From an Appraisers point-of-view
1) Appraiser – LOSER. Morally, Ethically and Professionally. Kickbacks – not to my knowledge.
2) Lender – LOSER. Potential toxic asset.
3) Investor – LOSER. Over-valued ARV and rent. Likely to sit without income. Vandalism target.
4) Tenant – LOSER. Sub-standard living conditions with maintenance problems.
5) Remodel Contractor – LOSER. Poor quality remodel result with warranty problems.
6) Lance Puig – WINNER.
7) YSP Contractors (Lance Puig is sole employee) – WINNERS. They get pay, even if it is minimal.
The above analysis must be correct, based on the comments I’ve read in this website, and the people who made them. There’s more to this story than meets the eye. It’s my opinion that a full, forensic financial audit should be done on YSP and its owner, Lance Puig.
Kendra,
At some given time would you be able to identify various properties?
I believe all of the houses that I bought from YSP are extremely overvalued.
Thanks for your testimony. This should be very helpful to everyone that has been scammed by Puig.
I'm glad that there is someone who is willing as an appraiser to give such a detailed statement of what has happened and someone who will be willing to stand up for us in court if they had to. As I posted one other time an attorney I had spoken with in the Dallas area said the properties were over valued but with me living out of state like so many other investors we didn't know that. I should have had a CMA done by a realtor prior to me signing any contracts for my homes but I didn't.
I do know that the rent is over the market rent because I had a property management company do a CMA for the fair market rent on my homes and all show the rent should be about $750-$800. That alone wouldn't even cover the mortgages or the 10% property management fee that would have to be paid out. I even had one of my tenants tell me that they were thinking of moving and found a much bigger house for what they were paying in rent now. This tenant has no credit so they really didn't have a choice to be able to rent someone else but were stuck paying over inflated rent prices through YSP. No one in their right mind would rent a home from YSP unless they had no credit or was desperite.
This is why some many of us are stuck with these homes until the bank takes them. We can't afford to pay for the repairs to fix these up when there are structual issues along with other major problems that are in need of repair. No one in their right mind as a property management company would make a tenant pay the rent Lance made these people pay. This is morally wrong and we as investors know this.
Also, can someone post the contact information for Kelle Slaughter Attorney General again? I tried the email address that was posted and my email came back as undeliverable. Do you have a phone number for her?
I spoke with David Ray a few months ago about me sueing York Street and let me tell you investors upfront if you don't have a certain number of homes he won't even talk to you or at least that is what I can gather. I called him numerous times because another investor had refered me to him. He never returned my call and then he sent me an email telling me that he couldn't represent me when he was talking of representing 2 other investors who had a million dollars invested in these homes. Because I only have 3 homes he wouldn't talk to me about the case against YSP so I could try to file suit with the other 2 investors. He really didn't give me any explaination for his decision. I don't feel that he is a fair attorney unless he is willing to present all of us no matter how many houses we have or the money we have invested.
Take a look at this, and be sure to leave a comment!
http://www.yorkstreetproperties.com/blog/category/uncategorized/
David P. Ray III
Winocour|Ray
Mr. Ray,
I am an ex-employee of York Street Properties and have friends that either have or still work there. Further, I'm unencumbered by confidentiality agreements of any type. I and others have much interesting information that you could find useful.
Though interested in your offer to provide information for your singular client, and while I'm pleased to hear that actions are being taken, I also believe it's appropriate to ask how your firm might be able to assist members of the 2 largest groups hurt deeply by the actions of York Street Properties and Lance Puig, Investors and Service Providers (Contractors)? I believe this question is very appropriate here and your thoughtful reply would be appreciated.
Respectfully,
Mr. Lance Puig, CEO
YORK STREET PROPERTIES, INC.
100 Crescent Court, 7th Floor
Dallas, TX 75201
September 7, 2009
Dear Mr. Puig,
I have always advocated running an ethical business, maintaining strict compliance with all state and federal laws, paying vendors on time, and resolving customer complaints in a timely manner. Recently, however, several online postings have come to my attention which outline, in great detail, allegations of fraud, criminal misconduct, securities violations, payment scams, non-payment of construction tradesmen, unresolved customer complaints and/or ongoing civil/criminal investigations concerning York Street Properties, Inc. including:
Lance Puig + York Street Properties — False Representations + Payment Scam
York Street Properties — Thieves at York Street Properties
/URL removed/
/URL removed/
http://us.ripoffrecount.com/2009/08/york-street-properties-a-review/
http://www.oodle.com/view/york-street-properties-warning/1558530470/
http://dallas.app.bbb.org/complaint/view/91118066/b/906ca9d7e
Some of these postings:
1. Appear to be from real estate investors that I personally delivered York Street Properties Inc.’s online presentation to;
2. Allege that I am your personal advisor, partner and/or co-conspirator in your alleged fraudulent business practices; and/or
3. Could result in severe civil and/or criminal penalties if proven to be true;
Based on the seriousness and volume of these allegations, I have no choice but to resign my position at York Street Properties, Inc., effective immediately, until which time York Street Properties, Inc. is able to resolve all of the allegations against it, as I cannot and will not knowingly be associated with any organization that is alleged to be committing fraud or securities violations, or which is otherwise engaged in payment scams, non-payment of construction tradesmen and/or acts of civil/criminal misconduct.
Sincerely,
Mike Bacher
YORK STREET PROPERTIES, INC.
Real Estate Investor Relations
100 Crescent Court, 7th Floor
Dallas, TX 75201
Well, this mea culpa from Michael Bacher cooks Puig's goose for sure.
Bacher knows where are the skeletons are hidden.
Bye, bye Lance! You're going to make some big convict a wonderful girl friend.
OK EVERYBODY - THAT'S A CALL FOR ACTION !
PLEASE GET YOUR COMPLAINTS FILED WITH THE ATTORNEY GENERAL'S OFFICE !
You can contact the Texas Attorney General at [protected] or through their Website:
http://www.oag.state.tx.us/
F*d by YSP - do you have better contact information for Kelle Slaughter? If so, please share so that everybody can use the same contact details. She's absolutely correct - all that matters now is the volume and content of complaints. This is GREAT news for us all !
I am making a mailing list for Investors, Trades, Tenants, Service Providers, ex-YSP employees and others with a legitimate interest.
PLEASE, forward any email and contact information you have for yourself and others that you know (or may have information on). This list will be used in a very constructive and confidential manner. For example, communicating the Attorney General's office information, keeping you up-to-date on lawsuits and investigations, etc.
If you've thought about letting people you know in on what's happening but have preferred to stay anonymous, please give us the contact info and we will communicate for you. If you've worried about providing us with a mailing list in past, please don't do thyat any more. We need contact information for investors, service providers, tenants, lenders - all who have done business with York Street Properties. I'm sure there are MANY that do not know what's going on here.
PLEASE SEND THIS INFORMATION TO: yspvictims@gmail.com
Now is the time to band together! Hopefully, we will be building a website soon. All on the mailing list will get a special invitation and password when it's up and running.
THANKS IN ADVANCE FOR YOUR HELP ! Please make the complaints to the Texas Attorney General's Office
contact fox 4 in dallas texas ...becky.oliver@usa.net...
she has done a number of mortgage fraud stories...
York Street Properties vehemently disagrees with the assertions in these malicious, anonymous comments concerning our business conduct. While we do not wish to speculate as to someone else’s motives, maybe the postings are motivated by the current multi-trillion dollar crisis in the domestic financial/real estate market. If that’s true, their focus might be more appropriately directed elsewhere. York Street Properties, like nearly every person and business, suffered in 2008 and the early part of 2009. However, since late spring of this year the real estate market has started to improve and, to that end, our dedicated staff is redoubling its efforts to maximize opportunities for our customers during this improving real estate market. YSP has delivered for many satisfied customers over the past years and much of our business has come (and continues to come) from customer referrals.
YSP does not recognize the comments posted on this unaudited website (or on other non-accredited “consumer advocacy”) as legitimate and truthful, backed by fact. Only the Better Business Bureau refuses anonymous complaints; therefore, only the BBB is a reliable source of consumer information. Posting anonymously is not an effective, nor fair, way to deal with complaints. Moreover, it is not a normal means to address problems. Contrary to the outrageous claims made by these anonymous snipers, YSP values each of its customers and, when necessary, always welcomes the opportunity to work towards a mutually acceptable outcome. Although rare, when solutions have not been readily achievable, YSP has often refunded money. For years YSP conducted business without such attacks and now, all of a sudden, these anonymous hecklers post online (instead of seeking legitimate means of redress). Worse still, the defamatory material posted here has been copied and re-posted verbatim to other sites. YSP is currently investigating its options to resolve this issue and defend its unfairly besmirched name and urges any potential, existing or former customer (including those who have posted this material) to contact us directly.
^^^^^ BALONEY!^^^^^
Don't believe that B/S people!
I am still living in one of their broke down houses.
They weren't giving our rent to the bank so the house is almost ready to forclose.
It is in the process of a quick sale. The owner told us to stop paying them because they weren't paying her!
Since there's only one official employee of York Street Properties, Lance Puig, I'll assume the little blog by "York Street Official Response" cam from him. Here's my thoughts on the subject and the facts:
1) When I and my fellow contractors are paid the approximately $600, 000.00 owed to us (spanning as much as 2 years or more), then
you can make the such claims. As for communications and names; you've been communicated with so many times without response
it's frightening. As for names, look at the hundreds of invoices and statements we've sent you over time instead of putting the in the
garbage. Have a look at your accounts payable records, if you bother to records your debts propertly.
2) Why did so many of the Investors loose their house to repossession? Why did you not pay the mortgages even after the Tenants paid
you the rent? You want to communicate with the Investors? Why don't you return their calls, tell them the truth and get their
money and credit ratings back?
3) Why have tenants lived in sub-standard, un-repaired conditions? Worse yet, why have tenants been evicted from their homes
because you haven't paid the mortgages? Why haven't you been truthful with the tenants from the very beginning of their
contract, when you said they could buy the house on a rent-to-own basis - that's purely untrue and fraudulent, in fact.
You've always hoped that all the parties you have been cheating and lying to would never get together. Well guess what - WE HAVE !
Sir, these acts have been going on since 2006 and earlier. This is not something you can blame on the economy - you only have yourself, your dishonesty and your lack of respect for other people to blame.
The BBB has at least 8 serious complaints against your firm and your status with them has been revoked.
The Attorney General is now getting named complaints.
Banking Regulators and Lenders are also investigating with named complaints.
Local and national media is being briefed on the investigation by named sources.
Thank Heavens to the person who started this blog and the person who started the YSP VICTIMS GROUP - we applaud you for your efforts and persistence. However, this group is now about ALL the injured members, not a single "provocateur" as you suggest. You and your companies names are permanently defamed and besmirched - YOU HAVE NOBODY TO BLAME BUT YOURSELF.
We either want financial restitution or you in jail where you can't hurt more hard working Americans!
LATE BREAKING NEWS:
LANCE PUIG INTIMIDATION CAMPAIGN THREATENS INVESTORS, CONTRACTORS, SERVICE PROVIDERS AND TENANTS IF THEY SPEAK OUT.
MANY INVESTORS, CONTRACTORS, SERVICE PROVIDERS AND TENANTS HAVE RECEIVED EMAILS AND TELEPHONE CALLS THREATENING NON-PAYMENT, LEGAL ACTION AND "OTHER NASTY REPERCUSSIONS" IF THEY SPEAK ILL OF LANCE PUIG OR YORK STREET PROPERTIES PUBLICLY.
DEFAMATION YOU SAY? NOT HARDLY - THE TRUTH SPEAKS LOUDER THAN ANY INTENTIONALLY FALSE COMMUNICATION EVER COULD. Definition: ANY INTENTIONAL FALSE communication, either written or spoken, that harms a person's reputation; decreases the respect, regard, or confidence in which a person is held; or induces disparaging, hostile, or disagreeable opinions or feelings against a person.
If Mr. Puig has suffered humiliation, embarrassment, mortification, shame, vilification, ridicule, exposure to public infamy, disgrace, scandal, injury to his reputation, financial loss, and has been hampered in the conduct of his business and affairs, then IT'S COMPLETELY OF HIS OWN MAKING - actions speak louder than words.
Instead of paying a lawyer $200 to write a letter or spending time threatening people you owe money to, why don't you spend those dollars on the many people you are indebted to? That's the way to make negative opinions of you and your companies go away!
WE HAVE THE RIGHT OF FREE SPEECH AND ASSEMBLY IN THIS COUNTRY, PARTICULARLY WHEN IT'S ABOUT PEOPLE AND COMPANIES THAT HAVE CAUSED US DOCUMENTED HARM.
Readers - speak your mind !
Lance Puig's "machinery" is threatening the people York Street Properties owes money to? That's preposterous!
It may be time to bring in an aggressive, professional debt collector that has many legal tools to work with and the expertise to deal with this character and the potential threat he poses to all.
I've had a written exchange with the moderator of this group. Would everybody please send an email to yspvictims@gmail.com and state the following:
1) The dollar amount that is owed to you.
2) The type of service or debt that is owed to you (deposits, rents collected but not reimbursed, remodel contracting, appraisals, etc)
There's no need to state your name or company name. PLEASE, it's possible that a reasonably priced collection option can be obtained if the entire group participates - we just need to get an idea of the total amount in question.
This is not a game and the owner of York Street Properties sounds like a seriously sick and possibly dangerous person. Please send the amount and service type to the Group Moderator as soon as possible. Please, don't be afraid, not a shred of information will be shared without your express permission.
Amount sent to email address - Also, thanks for the newsletter !
If this happened in California, it would be time to call in Arnold Schwarzenegger :-) Who's the Terminator in Texas?
Is there a single person out there that thinks Lance Puig will ever pay them back? What makes him think he has the power to threaten anybody after all he's done to people?
Thank You for the newsletter. I will send you some email addresses of representatives I know in Austin. They would be very interested in what's going on here and probably have some ideas for the group.
I can't believe anybody would buy the threats that Lance Puig & Company are trying to sell.
He's clearly in the wrong, doesn't appear to have any money he wants to spend on debtors and continuing to dance with the devil is a fairy tale. Wake up Folks, the meek shall not inherit the world.
I second that on the newsletter and am looking forward to more news in future. It sounds like the group is coming together.
Are there any York Street Properties ex-employees reading this that might consider themselves knowledgeable enough about Puig's operation with a strong sense of values who could serve as a spokesperson?
I did a Google search on "York Street Properties". Why, if there is so much money owed to people, does York Street Properties contend in press releases that they are still "going strong despite the economy"? Also, why is York Street Properties advertising that they can still "offer profitable returns to Investors" if that's a proven fallacy?
I believe I read an earlier post that said Lance Puig is trying to cover-up bad press and/or trying to get new Investors so that he can continue to "Rob Peter to Pay Paul". However, the statements by York Street Properties should be regulated by Texas Authorities - True or No?
THE MODERATOR ASKED ME TO POST THE FOLLOWING FROM A MEMBER EMAIL (THEY PREFER TO REMAIN ANONYMOUS AT THIS STAGE). THIS STORY IS OF PARTICULAR INTEREST TO EXISTING OR POTENTIAL INVESTORS AS IT'S A TYPICAL EXPERIENCE BY MANY MEMBERS:
I first started dealing with York Street Properties when I found an ad on Craigslist. I responded to the ad that a representative from York Street had placed. A week or so later he contacted me back. He began to explain how the program worked. I immediately was interested because I was looking to buy real estate investment property but had no money to put 10% down nor money to spend fixing these homes up. With York Street I didn’t have to put any money down, they paid for my closing costs and I got a rehabbed home. All of this sounded great so I began working with York Street and in March/April 2008 I purchased 3 homes through them.
Everything was going great until the first of 2009. My mortgages were being paid later and later (even some on the last day of the month). Then finally on 3/30/09 my last mortgage payments were made by York Street. They didn’t inform me or any other investors about them no longer paying our mortgages for us, which they had always done for me and all the other investors. This is when I really started having problems with them. When the end of April came and into the first of May and no mortgage payments had been made on any of my 3 houses, I begin calling and emailing Lance Puig himself, the property manager and other numerous contacts I had for the company to find out what was going on. No one would return my call. If I did get a chance to talk to someone by dialing a random extension then I would ask them what was going on. They said they would get with Lance and find out and call me back. This of course never happened. I would call back to try to talk to that person and like all the other people I had dealt with, they were no longer with the company. I started calling and emailing Lance daily for about 2 weeks and then at least every other day for about a month and he would not return my calls. I researched and found some other investors. I spoke with a couple of them and they all had the same problems. None of their mortgages had been paid since 3/30/09.
Also, I had 2 homes that there were tenants living in and one that was vacant. The one that was vacant had been vacant for a year. Out of the year and a half I have owned it was only been rented out for about 2 months. York Street also quit doing the maintenance on this property, such as mowing the lawn. I got a letter in the mail from the city stating that I was going to be fined because of the code ordinances that weren’t being followed. My grass was over a foot tall and had to be mowed immediately. I had to pay someone $75 to come out and mow this for me. This was something York Street had always done for me.
The two homes that had tenants living in them still paid their rent to York Street like usual. Only this time instead of York Street paying my mortgage, keeping their management fee and turning the remaining profit over to me they kept ALL my rent from my two tenants for their April and May rent. March was the last wire transfer I received from York Street for any rental profit taken in from my rental homes. York Street owes me $2800 for rent collected and a $500 security deposit for one of my homes. I didn’t have phone numbers for my tenants so I decided to mail them a letter explaining to them what was going on and that I was no longer retaining York Street as my property management company. My tenants called me and I began to manage my homes myself. I spoke with an attorney who advised me to send a written letter to Lance telling him that I no longer wanted his company to manage my properties for me. Once I spoke with my tenants I found out that there were all kinds of repairs that needed to be made. York Street was aware of the repairs and they never repaired them. I even have an email from one of the tenants were they emailed York Street with pictures of water damage, etc. and they never responded. If they did by chance get to talk with someone there they were always told that all the contractors were tied up at other job sites and they didn’t have anyone to send out to fix their repairs. I found out that some repairs were stuff that was supposed to have been done before closing but it never was. I live out of state so I didn’t do a final walk through before I closed on the homes. For example there was broken sidewalk and fences on one property that was supposed to be repaired but pictures show it wasn’t. The repairs were getting worse and worse because they weren’t being fixed. York Street had never let me know that the repairs needed to be made. One tenant said there were bugs all in their house, there was water damage from heavy rain that soaked the floor in the den, their walls and ceilings. York Street had came out one time to repair the sink drain and they took out their garbage disposal and never replaced it with another one. There were other problems with their water too. The other rental home the tenants said there were holes in the floor and walls that they too had contacted York Street to fix. I think she said this was from a water leak from the dishwasher.
Finally after numerous phone calls and emails I spoke with the property manager in either May or June and York Street emailed me a spreadsheet saying I owed them for several thousands of dollars in repairs that they made on my properties. Once I spoke with my tenants and gave them the dates and they sent me pictures I realized that York Street was lying about the repairs. Most of the repairs were for plumbing problems. Some of this also included lawn maintenance at one of the tenants’ home who always mows the lawn. They have never had York Street to do this for them. Also, there was landscaping they were trying to charge me for which was something that had already been done at one of my homes before closing took place. They never asked me about doing additional landscaping and that would have been something they would have paid for in their rehab costs before closing. I told York Street I wasn’t paying for these repairs because they never happened. They tried to get me to sign a contract saying they wouldn’t sue me for repairs if I promised not to sue them nor talk to any other investors about what had went on. This was also the only way they would release my $2800 in rent taken from tenants in May and June and the $500 security deposit that they by law should have released to me when they were no longer managing the property. I refused to sign the contract because I didn’t want to not be able to sue them or talk to any other investors about what had gone on. They should turn the money over to me without signing a contract since they legally owe this to me. The homes are in my name they were just managing them for me.
Also, they knew in March they were no longer going to pay the mortgages for me because they made me sign a paper for each bank asking them not to harass me with collection calls. I should have known something was up then. Of course the banks still harassed me with one calling 2-3 times a day for the last few months.