RE Loans # C0390 – Canyon Club (9% of REL portfolio)

Thank you Equitatus for bringing up one of our “favorite” REL investments, Canyon Club aka Snake River Sporting Club.  If you like documents, this post is for you.  Per Equitatus:

Q: Whats RE Loans biggest investment?A:  C0390 Canyon Club 61,146,348 9% of RE Loans (EDITOR’S NOTE – While technically true, if you add up Loan #s P0097 Georgetown/LochenHeath at $90M, Canyon Club is the second largest loan).

What does valuation expert Mary Ann say about it, “We are estimating that the loan will be paid in full seven years after the due date which is 1/7/2016, with several interim payments along the way beginning in 2011. As shown in the table, the estimated fair market value of the note is $16,821,364 or$16,800,000 rounded which is $28 per $100 of face value.”

Q: How did we end up in this mess?

A: Barney Ng know how to pick em’

See: http://www.jhnewsandguide.com/article.php?art_id=3667

and

http://www.jhunderground.com/2009/12/23/edgcomb-seeks-access-for-another-development-on-snake/

Jimmy why is this in basket 2?  I think you need a basket 4 for investments that will be paid after all noteholders are dead and buried.

The best document available, however, is THIS DOCUMENT (YES, CLICK HERE).

The next best document is THIS ONE (IT’S A BIG FILE, SO PLEASE BE PATIENT).

Assignment of Mortgagee’s interest:
Assignee: Barney J. Ng, as Sole Trustee of the Barney J. Ng Living Trust, a 55.556% interest
Recorded: March 4, 2005
Recording Information: Book 581 of Photo, page 320-325

There are four other documents of interest (click on the numbers below):

1

2

3

4
We welcome your commentary….

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11 thoughts on “RE Loans # C0390 – Canyon Club (9% of REL portfolio)

  1. Steve Schram and Kym Greene bios on the
    DPS web sige.

    http://www.dpsdevelopment.com/players/

    Looks like a new company is trying to flog the
    lots

    Private Lifestyle Group

    http://www.plgproperties.com/

    If Private Lifestyle Group is indead now in
    charge of selling these lots, we better watch
    them closely as they hung one of their salesmen
    out to dry, on expenses and comission.

    See Jim Jackson v. Private Lifestyle Group and
    Douglas Moore Case No. 2:2009cv02483 United States
    Federal District Court Northern District of Alabama.
    Look at the second amended complaint.

    http://dockets.justia.com/docket/alabama/alndce/2:2009cv02483/129401/

    On the development itself I see no homes or other infrastructure on google earth except the lodge.

    http://www.spafinder.com/Spa/7979-Snake-River-Sporting-Club#overview

    At least we own a nice lodge. Maybe
    we noteholders who have lost their homes
    could spend the summer there

  2. If I understand the history of this RE Loans lent the
    $64 Million to Canyon Club Inc and Richard Edgcomb. Canyon was in bankruptcy and debtor in posession in 2005.

    Barney got a nice fat $1.8 comission again putting our money at risk with Richard Edgcomb, who at that time was at least a one time loser as the developer for Canyon.

    The change the name of the enterprise to Snake River Sporting Club and Edgcomb takes a second shot at trying to developing the property and fails. Putting
    the Sporting Club into bankruptcy in October of 2008.

    Once burned shame on them.
    Twice burned shame on me.

    Now Jimmy has turned over the keys to the kingdom to a new bunch of crooks.

    A third burn could be fatal.

  3. Eq, the way I read it, Barney got $9M plus $1.8M for a total of 16.75% fees and commissions on the $64.7M loan. On the bright side, at least these were backloaded behind the main loan.

    Anyone else find it incredibly ironic that Barney is suing for a breach of his PERSONAL GUARANTEE? In a sick way, I actually hope he wins his suit – the investors will know where the asset is and be able to attach it.

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