As one of the principal owners of the now closed Whitener & Flynn Properties, it is hard to read these accounts. Some accounts are true; some are false; some are extremely embelished. For years and up until our closing, we were very proud of the service that we provided to our Clients, which you yourself boasted about, as did many of our Clients. Our growth was mostly word of mouth. We were always very timely with our payments, took good care of tenants and were a member of the Better Business Bureau. I wanted to provide the facts on our side so that at least everyone would know where we stand. I know that this is an extremely difficult time for all our past Clients and their tenants.
As a property manager, we are contractually obligated to care for certain issues. Example: a tenant calls with a major roof issue. The estimate is $3000; the owner has $300 in their account. We still must go ahead with the repair. If that tenant moves, the owner refuses to make payment, the buiding is sold or foreclosed on we are stuck with the bill. The same is said for mortgages, taxes, insurance, utilities, repairs, etc. This is a problem for any property manager, but as most of you know (especially you Josh, who's been turned away by one property manager thus far), we managed properties in high risk areas that most property managers would not dare take. That fact coupled with the fall-out of the real estate market, made negative Client invoices skyrocket. There are many past clients that owe Whitener & Flynn Properties money - tens of thousands of dollars. These negative invoices have been accumulating over the course of 3 plus years.
So after reviewing the company's financials, speaking with an attorney and doing much research, Travis Whitener and I voted to close Whitener & Flynn Properties on July the 3rd. So that the company did not accrue anymore owed balances, we closed as soon as possible, to stop collecting the rent and paying out expenses. Once we explained our situation to our attorney, that is what we were advised. Since the 4th of July was a holiday, letters went out on July 5th. We understand that this was extremely short notice, but the other alternative was to keep collecting rent that we may or may not have been able to pay out. On July 10th, we laid off all our employees, sent all licenses back to the Real Estate Commission and ceased all property management/real estate activities.
Our employees worked so hard for us and were committed to your success, and now, they are without jobs. Please don't harass them. Travis and I soley handled the company's financials. They were in as much shock as all of you.
We paid out as many Clients as we could. And yes there were contractors that didn't get paid because we felt that our Clients were owed that money first. Another round of cashier's checks are going out today to past Clients, from owed monies collected, and we will continue to send out monies to past Clients as the Clients that owed us money pay up.
Travis and I are very remorseful for what has happened. He and I have nothing. Our personal rental buildings have been foreclosed on, we are months behind on our bills (and could be losing our personal homes/cars/etc). We have already consulted with a Bankruptcy attorney, but honestly, don't have the money to file. We've cashed out our personal savings, 401K, etc to pay out everything that we could.
We do want to thank all of the Clients and tenants who have shown support to us during this difficult time, especially considering that is equally, if not more difficult for them.
If any past Clients have questions or concerns, please call 314-481-2567. I know that there are lots of rumors floating around, understandably so, but please call us. If there is no answer, leave a message and Travis and/or myself will call you back.
Jul 19 '07, 04:38 AM
