Crazy Schedules For Showings

July 23rd, 2014 · Kids & Family, Rental Property

House with a towerOne thing owners completely underestimate when showing apartments is the havoc that it will play with your schedule. After many years, I’ve become use to the cancellations, the late arrivals, people getting lost and just not showing up. I plan and schedule and still manage to never know what I’m doing on any given day.

That’s how I roll.

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An Appeal To League Employees By the League Investors Victim & Recovery Group

July 15th, 2014 · League REIT Updates

If you're happy and you know it, Clap your hands

League Investors Victim & Recovery Group are a group of League victims as are many of you. Even though the mortgages on the buildings were paid, employees were not fully paid in some cases.  There are now more than 200 members in our group: which is impressive considering we have been denied access to the full investor list citing “privacy concerns” Many investors have made contact through this blog, one and two members at a time. If you are a League Victim you can email the group to join at leagueinvestors@gmail.com.

Ironically, we know that the full list is floating around, and some of you have some or all of the list in your possession. We know this because Emmanuel Arruda reached out to the investors in an email and another ex employee sent out an email blast to try to sell the recently decimated League Victims an investment.

The League Investor’s Victim & Recovery Group needs the list because the more members we have the more strength and impact we will have. Our goals are simple and transparent.

1 – Recovery of Funds
2 – Punishment of Perpetrators
3 – Prevention of Similar Crimes

We have a strategic plan to work on all the above goals.

The truth of what happened wants to come out and play. We know that many League ex-employees have information that is essential to our investigation. We also know that you cannot give out this information without great personal risk. In some cases you could lose your job, you could lose your exempt market dealer license, you could be sued and you could be “black balled” and lose your entire career. There is no whistleblower law that would protect you.
The League Investors Victim & Recovery Group knows that most of the employees did nothing wrong except do their job and earn a few bucks to feed their families. Many of you invested right along with “member partners” and believed in the company. Having said this, some of you may have been witness to events or information that seemed mysterious or unexplained at the time, but make perfect sense now in light of new information. You may have documents or emails that need to be “liberated”. You may need to speak to a person in confidence.

We need your help, but we do not want you or your career to be risked. For this reason we have come up with several ways you can make anonymous submissions. You can fax to 1-647-724-1619 from any number of corner stores or Staples. Pay cash. You can use regular mail and mail to 228 Scarborough Golf Club Road, Toronto, Ontario, M1J 3G6. This is my personal home address, so if you come over bring beer.

You can make a fake email address and email our group leagueinvestors@gmail.com. This is less secure but easy.

After our investigations our group has come to the conclusion that 99% of League employees did not know what was going on. As soon as League Employees figured out what was going on and objected in any way, they were fired by any means necessary. This is one of the major reasons why there was incredibly high staff turnover at League including the rotating door of CFOs. One of our questions is how the money was moved around and concealed.

Any little detail might be extremely important, the prizes are investor list and we would love to see the Altus Helyar valuations on League properties. I’m sure if you’ve been holding something back for a while it’s probably important. I think we can all agree that scams like League are bad for investors and bad for business in general.

Many thanks, Ex League Employees.

 

 

 

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Caught Again! Proxy Trickery At Partner’s REIT

July 6th, 2014 · Partner's REIT Updates, REIT

The Poop Monster

EDIT: Actually this entire post is wrong. I made a mistake. It happens :-) I missed the news that Orange Capital withdrew all their nominees for Trustees. I have no idea why they did so after going to court and winning the right to put those nominees forward, but there you have it. I apologize for being a dick.

Earlier today the ever vigilant Allison Barber caught this piece of news. Make sure you read this analysis all the way through.

Partners REIT Announces ISS Recommendation: Unitholders Should Vote FOR All Trustee Nominees and Resolutions  

Partners Real Estate Investment Trust (the “REIT” or “Partners”) (TSX:PAR.UN) announced today that Institutional Shareholder Services (“ISS”) has recommended that its clients vote FOR all of Partners’ Trustee nominees for election at the REIT’s upcoming Annual and Special Meeting, to be held on July 15, 2014. ISS also recommended that unitholders vote FOR the Unitholder Rights Plan and approve KPMG LLP as auditor.

ISS is a leading independent international corporate governance analysis and proxy voting firm, whose recommendations are intended to assist unitholders in making choices regarding proxy voting decisions. In making its recommendation, ISS met with the REIT, carefully considered the nominees and details of the proposals put forward and recommended on the basis of what it believes is in the best interests of unitholders. The Board of Trustees is pleased to have received this important endorsement from an independent third-party.

The Trustees have taken decisive action to protect and enhance unitholder value and the REIT is well on its way to a brighter future. The Board’s immediate focus is on completing a search for a new permanent CEO and the ongoing strategic review of the REIT. To ensure unitholder votes are voted at the upcoming Meeting, the Board recommends that unitholders cast their vote on the YELLOW proxy in advance of the July 11, 2014, 1 p.m. (Toronto time) proxy voting deadline.

Who Is ISS?

According to Wikipedia:  Institutional Shareholder Services, Inc. (ISS) is a proxy advisory firm. Hedge funds, mutual funds and similar organizations that own shares of multiple companies pay ISS to advise (and often vote their shares) regarding share holder votes. It is the largest such firm, with over 61 percent of the business[1] It is owned by MSCI.

In short Partner’s REIT paid money to ISS so they would announce their paid recommendation to vote their proxy the way the existing governance wanted. 

Here’s what they advertise as their serviceGovernance Advisory Services can be used with our turn key proxy voting to ensure complete control of the voting decision

ISS is the corporate equivalent of getting your aunt to vouch for you on a rental application. Except you have to pay your aunt.

Landlord Rescue Announces Shareholder Misleading At Partner’s REIT & Recommends Forensic Audit

This reeks of the same corporate governance that led to the collapse of the League Ponzi Group, the same crooked corporate governance that was revealed by the trustees during the last proxy battle, a battle that was lost by the trustees who all got canned for raising serious concerns about non arms length transactions, specifically Adam Gant trying to get Partner’s REIT to buy League’s decrepit vacant properties.

In a culture of back alley deals as soon as the League scandal seemed to fade away, the purulent boil of dishonest dealings raised it’s ugly head and Partner’s REIT governance got caught pushing through a non arms length transaction. Then CEO Ron McGowan resigned after getting caught red handed with his hand in the cookie jar except it wasn’t a cookie but a half vacant, deferred maintenance mall he was getting from his business partner.

In a perfect example of why dishonesty is bad for business, obviously the share prices have been going nowhere but down as the madness continues unabated. You’re a REIT for god’s sake not a soap opera. All you have to do is improve your buildings, pay the mortgages and distribute income, this is not a complicated business plan. As for the poor poor patient shareholders, the best thing to do is the complete opposite of what this board wants. This is the board that has seen your share prices lose 37% of their value.

ISS is just one more useless company that provides no value to this debate except to provide Partner’s REIT with an “Appeal To Authority” for shareholders. Shareholders don’t know that the official sounding ISS is just another PR stunt paid for reference. This type of trickery was seen over and over at League. One of the most effective that got a lot of people believing and investing was the “paid rating” scam or the “impressive announcement” scam.

Stop the madness!

 

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League’s Deception, Lies and Conspiracies

July 3rd, 2014 · League REIT Updates

World's Biggest Liar

People I have to say I’ve been silent about League not because I don’t have anything to say but because I just want to rent and manage new condos and not be bothered with the fucking cesspit of League. Every single time I think the latest update is the worst I end up discovering another layer of filthy psychopathy.

Screwing Over Past Employees

I now know of three higher up past employees that were constructively dismissed after asking questions. But there ended up being allegations of sexual harassment. So basically the CEO or Sales Manager would ask why they were using investor money to fund payroll or bills and the next day there would be allegations. This happened.

Then after that in one case at least Manny “Ethics” Arruda went online smearing the reputations of said persons under pseudonyms (fake names).

Cease Trade Orders

Back in 2007 there was 4 total cease trade orders I know about (there may be more) and during the time that there was cease trade orders, League collected checks and money and it was selling as usual, except those check got stockpiled and cashed once the CTO was lifted.

Investors may or may not have been told about the Cease Trade Orders.

This was revealed during court room testimony by Adam Gant and a copy of his testimony was given to the BCSC.  It’s positively shocking.

7  776     Q   And did the CTOs have any impact on the business of

         8              League? 

         9          A   Yes.  Yeah. 

        10  777     Q   What impact? 

        11          A   Well, not so much in Citizen or IGW Property’s

        12              case, but in the REIT’s case, you know, we were in

        13              the process of raising capital for some

        14              transactions, and so we had to delay the

        15              transactions until the cease trade was lifted. 

This information was given to the BCSC and they did nothing.

 

Using Investor Funds For Payroll and Payables

This is Adam Gant’s own testimony verbatim as per court transcripts.

4  891     Q   And my understanding is — obviously from my

5              client — that there were intense discussions on

6              how on earth the payroll would be met, for example,

7              given the small amount of cash and the state of the

8              payables.  Have you been informed that there were

9              such discussions?

 

10          A   Yes.  Yeah, I remember there being some.

 

11  892     Q   And at the time — do you understand now at the

12              time, that is, January and the first days of

13              February, there was not sufficient cash to meet the

14              payroll or deal with those payables?

 

15          A   Sorry.  What are you asking me?  Was there cash?

 

16  893     Q   Yes.

 

17          A   I think we needed to — to get outside funding that

18              month.  We had to inject more shareholders’ loans

19              into the company that month.  So, no, there wasn’t

20              enough that month.

 

21  894     Q   And did you tell my client that there was or was

22              not money to fund the payables and the payroll in

23              January?

 

24          A   I believe I told him that — I think I told him not

25              to worry about it.  I w

1              I remember at the time hoping that they would find

2              a solution while I was away.  I knew that if they

3              didn’t, when I got back, we would take care of it.

4  895    Q   How did you?

5          A   We put more capital into the company for the

6              payroll.

 

7  896     Q   Who is “we”?

 

8          A   Myself and Emanuel.

 

9  897     Q   Did you tell my client before the two of you did

10              that that there was 5 million in Mr. Reed’s trust

11              account to cover the payables and payroll and other

12              ongoing needs for money?

 

13          A   January 2008 . . .  I’d have to look at the trust

14              report to find out exactly how much cash was

15              sitting in the account at the time.  But up to that

16              point, we were carrying usually a million or two in

17              trust funds.

 

18  898     Q   I didn’t ask you that.  Whatever was there, did you

19              tell my client, Hans, there is $5 million — or

20              words to the effect — Hans, there’s 5 million with

21              Keith Reed; don’t worry?

 

22          A   I could have, yeah.

 

23  899     Q   Is that true?

 

24          A   Well, I’m sure I told him that there was money in

25              the trust fund because there was for payables for

1              the — the real estate entities.

 

2  900     Q   Well, did — did you tell him the truth?

 

3          A   Yes.  Yeah.

 

4  901     Q   So if you said 5 million, there was 5 million?

 

5          A   Whatever number I told him there was at the time.

 

6              Like, the number that there was, I can get that for

7              you.

 

8  902     Q   I’m instructed that you, very shortly after telling

9             him there was 5 million, said there was 3 million.

 

10          A   Okay.  I –

 

11  903     Q   Do you recall that?

 

12          A   Again, I can’t recall the specific numbers, but it

13              was another one of the times where I said, Please

14              call Keith directly if you’d like to confirm the

15              number from — for yourself.

 

16  904     Q   Do you recall giving him different numbers, like

17              significantly different numbers?

 

18          A   If it was a — well, if it was — if it was while I

19              was away, I could have then checked and just

20              updated myself as to exactly how much there was, so

21              possibly.

 

22  905     Q   Did you tell him around the time of these

23              discussions that you wanted to teach Manny a

24              lesson?

 

25          A   Yes.

1  906     Q   And what was that about?

2          A   Well, like I said, I had hoped that they could find

3              a solution without me that week while I was away.

 

4  907     Q   So what was the lesson that you wanted Manny to be

5              taught?

 

6          A   Well, I just was hoping they’d come up with a

7              solution without me.

 

8  908     Q   So in other words, did you mean by that that you

9              wanted Manny to figure out how to do it without

10              bothering you?

 

11          A   Yeah, exactly.  I just hoped that they could either

12              find a financing source that, you know, didn’t

13              involve me going out and — and doing it myself or

14              find a solution to it in the short term to, you

15              know, fulfill themselves.

 

16  909     Q   And did you say words to the following effect to my

17              client around this time frame and about these

18              discussions about finances that, The accounting

19              girls are idiots; they don’t know how to move money

20              from A to B?

 

21          A   I hope I didn’t use that term.

22  910     Q   I’m not suggesting you’d be indicted for that if

23              you did so, sir.  Did you use words to that effect

24              and say basically that?

 

25          A   Possibly.

 

 

1  911     Q   And what would you have meant by that?  That there

2              was money available for them if they just moved it?

 

3          A   Well, the funds — any funds in trust for the

4              entity can be moved up into our account for the

5              entity, and if they hadn’t done that, typically,

6              when I get back, I typically — you know, I’ll do

7              the cash flow projection and — and move the

8              capital from trust as we need it.

 

9  912     Q   Sorry.  “For the entity,” you mean the assets?

 

10          A   The REIT or the — the LP for the specific project.

 

11  913     Q   So do you mean monies invested for those could be

12              used to deal with payables and payroll of League?

 

13          A   Yeah.  I mean, if we’re — if we’re investing in a

14              project, subscription funds prior to that time had

15              typically flowed into Keith Reed’s bank account.

16              He would hold them until after the decision period,

17              and then once they were effectively released, we

18              could then use them to go and buy an asset or

19              invest into upgrading an asset or for whatever

20              particular — you know, it was just a whole — it

21              was one place or another where the cash was held.

22              So if we needed capital for, you know, some

23              invoices that we required, we transferred from

24              Keith’s account to our account.  If we were going

25              to close a property and we’d raised some money but

1              had some in our account, we’d transfer from our

2              account to Keith’s account, so . . .

 

3  914     Q   I’m not sure I follow, so let’s — let me ask you a

4              question or two on this.  So if people sent money

5              in for subscriptions –

 

6          A   Yeah.

 

7  915     Q   — and were held for the period properly by

8              Mr. Reed –

 

9          A   Yeah.

 

10  916     Q   — after that period expired, did you understand

11              you could use those monies for payables of League

12              including payroll of League?

 

13          A   We’re not talking –

 

14       MS. McNEIL:  Just before you –

 

15          A   — about the defendant.

 

16       MS. McNEIL:  — before you answer –

 

17          A   We’re talking about the entities.

 

18       THE WITNESS:  Sorry.  Yeah.

 

19       MS. McNEIL:  — the question — sorry.  Again, I just want

20              to ask you, Mr. Main, because you seem to be fairly

21              far-reaching here, how this relates to matters

22              raised in the pleadings.

 

23       MR. MAIN:  I think it’s raised in the pleadings or at

24              least by allusion, and let me think aloud further.

25              My client, as I’m asking yours about, was disturbed

1              about or expressed concerns about some of the

2              aspects of operation of the business, and that

3              might be related to what led to his alleged

4              constructive dismissal.

 

And that is Adam Gant under oath testifying in a court of law about playing fast and loose with investor money. This court proceeding occurred in 2009 but the events occurred in 2007.

 

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What One of My Customers Said About Me…

June 23rd, 2014 · Testimonial

Smouldering Heart of the BluesAt Landlord Rescue we like to treat clients the way we want to be treated. Reasonable prices, great service, no hidden charges or excess fees.  You own the property and you should know everything about what your manager is up to. On the other hand you also need competent professional people to guide you in your decision making process and if necessary make immediate decisions if required to save your property from damage.

Testimonial

Hi Paul,

I highly recommend Rachelle as a property manager.

Rachelle was managing three of my investment properties in Mississauga. I sold two properties, so she is currently managing one of them.I interviewed several property managers and finally decided to go with Rachelle for the following main reasons:
    • Her property management fee is reasonable. Some property management firms wanted 8-10%/mo. Also, she did not charge me anything more for acting as my agent for tax purposes [I live in the U.S]
    • Her property management agreement is very straightforward. After the initial one year period the agreement is month-to-month, which can be terminated within 30 days notice. [You can also terminate it within the one-year period mutually.] My previous property manager had me sign a 1-year agreement each renewal and required the PM fee to be paid up-front.
    • Rachelle sends me an invoice each month and I pay only for that month
    • Rachelle uses dropbox to organize all of my rental documents, invoices, etc. It makes it easier to access all of the documents from one place whenever I need to
    • If any repairs are needed Rachelle makes sure I ok the quote. After the repair is completed she then sends me the invoice for payment. My tenants really appreciate that, since there is no delay in waiting for my payment and then sending someone out to fix anything.
    • Rachelle is very knowledgeable on landlord/tenant law in Ontario. She has been very patient in answering any of my questions, since things are done very different in the U.S.
    • Most importantly, Rachelle is easy to get a hold of. She responds very quickly to emails. She has even emailed and called me back on Sundays.

So far, it’s been a positive experience with Rachelle managing my properties in Mississauga. If you have any specific questions, feel free to send me an email.

All the best.
Regards,
Sangeetha

The Landlord Rescue Difference

We have the simplest strategy ever.  Get great tenants. Relax.
We have the simplest billing strategy ever. 5% for management and 1 month’s rent for rentals.
Here’s a list of the bullshit charges I don’t charge.
  • Set up fees
  • Inspections fees
  • Move in and out inspections
  • NR-6 or Foreign Investor Agent

We rarely charge project management fees and only with your agreement and approval.

In fact if we rent an apartment/house for you we don’t charge you management when the property is vacant or for the first month of the tenancy.

It’s great deal and we’re expanding our portfolio so we’d love to hear from you. 416-880-4126

 

 

 

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