For those keeping score, Kelly Ng wins. Jim Weissenborn loses. Kelly (the good son?) did everyone a favor by getting the end of the year newsletter out “early”.
Unfortunately, we’re the real losers based upon Kelly’s bullshit-laced tome.
You might as well sit down, pour a cocktail, practice your breathing or do some yoga, because this is not pretty. Despite our favorite Cal Volleyball Coach’s strong effort to make everyone think everything is hunky-dory, it ain’t, people. In fact, MF ’08, as everyone already presumed, is just about as screwed as RE Loans and RE Reno. If you want to keep reading, this story and the link to the letter continues after the jump.
Here are some gems from Kelly’s update:
“Walter and I are devastated by what happened to you”
“The value of [your] investment at this time is unknown”
[We are] “attempting to address the immediate and long-term needs of the Fund”
“Essentially we are now dealing with a portfolio of non-performing loans”
“The majority of the loans are secured by land or partially developed property”
“…the properties securing our loans are located in areas where demand and values have plummeted”
“We are attempting to avoid the quick ‘fire sale’ of loan assets at the current depressed prices”
“All loan proceeds will be utilized to protect the portfolio assets and operate the Fund”
“We have engaged Focus Realty Services of Lafayette, California…adding them to our team gives us the breadth and depth to deal with the many problems facing us in these very challenging times”
“The total unpaid principal balance (“UPB”) of the Funds’ portfolio is approximately $74,000,000 consisting of 15 loans”
Unimproved land = 91% of the portfolio
A noteworthy event, according to Kelly, was the replacement of Bar-K as the loan servicer. Welcome Lend, Inc. (owned and operated by Walter & Kelly).
“We have implemented cost reduction in our operation”
The Dishnica Company has also been engaged. They get another piece of our pie. Welcome back, Rick!
“Third party permitted expenses will continue to be paid by the Fund in accordance with the Operating Agreement”
The CA Dept. of Corporations has supposedly concluded their investigation and found no wrongdoing.
“During 2011, we do not believe that the Fund will be able to make any distributions to the noteholders”