WHY WE’RE HERE

WE WANT OUR MONEY BACK!

We started this website to give investors (and their friends and families) a place to share their knowledge and thoughts about the losses suffered through investment in the various Bar-K funds.  We hope that this website will lead to a recovery of our investment dollars.  Thank you for joining us in this important effort.

The following comes courtesy of the Bar-K website, found at http://www.reloansllc.com:

History of Bar-K Incorporated, B-4 Partners, and its Mortgage Pools
Beginnings
From 1950 to 1975 Walter Ng, the founder of Bar-K Inc., originated, collected and serviced loans (usually second and third trust deeds) for himself and his clients.

Bar-K Incorporated
In 1975 Walter’s oldest son, Barney, joined him in the business and it was Walter’s goal that his other son, Kelly, would join him, which he did upon graduation from college two years later. Therefore, in 1975 Walter, Barney and Kelly formed Bar-K Inc. Almost from its inception, the business grew rapidly and in 1980 Bruce Horwitz, who had been an investor for many years, joined the business. By this time, the business had grown considerably, although almost all of the loans were still second deeds of trust on residential property.

By the middle of the 1980’s banks began to heavily promote the “Home Equity Loan”, another name for a second deed of trust. The increased competition for good loans necessitated a change in business in order to insure safety and continued high yields for our investors. Therefore, Walter and Barney created a new product, a six year first trust deed that could be used for both residential and commercial property alike. The acceptance of this new product by the business community greatly increased loan volume and resulted in the fact that today almost all Bar-K loans are first trust deeds for a term of six years or less.
B-4 Partners and the Mortgage Pools
By 1984 with a new loan product in place and investor money and the size of loans growing, it became necessary to devise a new way of organizing investor assets in order to respond rapidly to loan requests and to keep investor money compounding. A new entity was formed, B-4 partners, consisting of Walter, Barney, Kelly and Bruce. They, in turn would manage our first mortgage pool, BAR-K Mortgage Income Partnership. The purpose was to pool investor funds in order to respond rapidly to loan requests, to keep investor funds continually invested, further reduce risk and be able to accept varying amounts of funds whenever investors desired to make additional contributions. For safety, all loans were first trust deeds not exceeding a six-year term. By 2002 B-4 Partners was managing 9 pools and changing market conditions along with new government regulations made it necessary to merge the nine existing entities into one, R.E. Loans LLC.

In October 2007, R.E. Loans LLC was reorganized in order to comply with federal regulations. This resulted in investors becoming noteholders rather than shareholders, but with the same loans as collateral for their investments.

In December of 2007, Walter and Kelly Ng formed Mortgage Fund ’08 LLC to handle new investments since, as part of the reorganization, R.E. Loans LLC ceased taking new funds and is due to wind down over a five-year period.

As stated on their website, the B-4 Partners were interested in safe and secure investments:

“The one thing we know that we will not change is our commitment to our investors to produce the highest yields without sacrificing safety. We hope our investors share our goals and will continue to be with us far into the future.”

For many decades, Bar-K funds were a safe, secure place to park money.  Monthly interest checks were received like clockwork.  Investors could call the Lafayette office and request withdrawals, which would be processed and mailed upon 24 hours notice.

“Despite all of the changes in acquiring, packaging and servicing both loans and investor assets, no investor or mortgage pool has ever lost any principal, interest or late fees, since Walter began making loans in the 1950’s. The first objective of our business is safety and that is the one concept we will not change.”

Despite this promise, in November of 2007 RE Loans exchanged its member’s equity interests for debt interests.  As part of this Exchange Agreement, RE Loans subordinated its holders of debt interests to a junior position behind Wells Fargo Foothill in exchange for a $50,000,000 line of credit that had been previously accepted, but not disclosed to investors, in July of 2007.  This line of credit was increased to $65,000,000 in November of 2007, the very same month of the Exchange Agreement.  In return for the line of credit, RE Loans assigned numerous, if not all, properties to Wells Fargo Foothill.  The details of the assignment have not been confirmed or revealed.

In October of 2008, RE Loans failed to make its required interest payments to its noteholders.  On January 15, 2009, RE Loans was notified by Development Specialists Inc., the collateral agent, that the fund was in default.

The Ngs also established a new investment vehicle known as Mortgage Fund ’08 and encouraged existing RE Loans noteholders to invest in this new fund as RE Loans was no longer accepting investments.

“In December of 2007, Walter and Kelly Ng formed Mortgage Fund ’08 LLC to handle new investments since, as part of the reorganization, R.E. Loans LLC ceased taking new funds and is due to wind down over a five-year period.”

Shortly thereafter, Mortgage Fund ’08 defaulted.

The Bar-K folks also offered an investment in a hotel and casino in Reno, called the Siena.  The investment vehicle is called RE Reno.  Investors were offered a 9% return.  Reportedly, approximately 129-150 investors make up the fund.  The supposed total RE Reno investment amount is approximately $29,000,000.  It should be noted that RE Loans also invested in the Siena to the tune of approx. $21,000,000 for a total of $50,000,000 now potentially lost.  Barney’s Siena entities include or have included the following:

  • Five-Way Development
  • Hi-Five Enterprises
  • Wild Game Ng
  • One South Lake Street
  • Tri-Ng, Inc.

RE Reno, like RE Loans and Mortgage Fund ’08, is in default.  Investors and noteholders have not received interest payments for the last few years.  The Siena was owned by a Barney Ng entity until November 10th, when it was sold at auction for $3.9 million.  The RE Reno investors will likely lose everything when it’s all said and done.

According to the fund’s website, these are the addresses and the individuals in control of each entity:

Bar-K, Incorporated
Barney Ng, President; Kelly Ng, Vice President

B-4 Partners, LLC
Walter Ng, Kelly Ng, Barney Ng, Bruce Horwitz

R.E. Loans, LLC
Walter Ng, Manager; Kelly Ng, Manager

The Mortgage Fund, LLC
Walter Ng, Manager; Kelly Ng, Manager

The Mortgage Fund ’08 LLC
Walter Ng, Manager; Kelly Ng, Manager

WE ARE HERE TO WORK TOGETHER TO TRY TO RECOVER WHATEVER IS LEFT OF OUR INVESTMENT.

Thank you for joining us in this noble endeavor.