Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
Hi everyone... I'm new to this forum, thanks for having me.
I'm in a little bind and need some help related to a 1031 exchange where a Qualified Intermediary is holding $113,344.93 of my money. Looking for some advice.
I closed on a new property today at 3pm (EST). i told this Hetsler group last wednesday, 8/2/17 that today was the closing. I reminded them on Friday, 8/4/17 and was told the funds would be wired into the account that night. Didn't happen.
I was told today by 10am the funds would be in the account. Again, didn't happen. Was told 2pm, didn't happen.
They're dogging my calls and will not return emails/ or any correspondence related to this transaction. I had a friend go by their "office" and it is a Regus key man office space.
What are my options related to access to the funds to make sure they have not scammed me? The dude's name is Robert Hetsler. Apparently "Dr." but I'm not buying that is legit.
Property Manager · Northeast Florida · Member since 2015 · 135 posts · 76 votes
8y
@Cheryl Dopp - So you have joined BP today, just to comment on this? I'd encourage you to go beyond just the first posters comments and feel the anguish of all the investors that lost money. Then come back and offer some real value in your review. " trying to get in touch with Robert over a new transaction" .... seriously? Please read all 7 pages.
I think everyone would agree that - NO this thread has not contributed to him being run out of business - His actions have led to him to BE out of business.
Did investor funds pay for this? His $500 QI fee certainly did not ..... 06/22/17, Robert Hetsler paid $1 million for the 5,589-square-foot home at 4871 Scenic Marsh Court, off Heckscher Drive. Now in foreclosure!
I am in the middle of my first 1031 exchange right now and my QI is
The fee is 1k plus $200 on the back end for the identified property. Your attorney will not be shocked by this rate. You will be in good hands with Claudia. Good luck on your next transaction.
Qualified Intermediary for 1031 Exchange" · Jacksonville, FL · Member since 2015 · 239 posts · 84 votes
9y
I rarely ever lose my temper but when you make accusations like that which are completely unfounded and are completely inaccurate I have no choice but to defend myself, my integrity and my business. Having said that the short answer is that your federal reference number is 0807b6b7hu4r012741. I don't have the ability to post on my mobile device because you're post was just brought to my attention and I am away from my computer but I assure you when I get to my computer I will also show you screenshots of where it was attempted to be sent out by the the second largest banking institution in the United States, Bank of America, and they made a mistake on 4 of the wires and they admitted their mistake
our normal practice is to wire the money at least 24 hours advance of closing which is why we were trying to wire your money out on Friday. I also have an email where I emailed the bank at 8:30 this morning to ensure the wire would arrive on time and then I subsequently emailed you confirming with you. The federal reference above is confirmation that it was received and sent as I have also confirmed that with your attorney's office so at this point I'm wondering why you're complaining when the money was wired on time, albeit, I attempted to wire the business day before because banks basically need everything shy of a retinal scan to facilitate wires especially when we put the internal controls to safe guard our clients and ensure all clients money is protected every day all day 365 days a year.
Again, I really respond, if ever, like this but, in this situation, where my characters called into question for the first time in my professional career I have to provide a firm response so I will post when I arrive back to the office emails referenced above to establish additional evidence that your money was never at risk, was the first thing and the last thing I dealt with a business day before and the first email I sent at 830 am this morning to ensure a smooth closing. I will also post the email I sent you immediately after securing confirmation from the bank your wire was forthcoming and arrived on time the day of closing even though we attempted to send the business day before.
I will say this, that at a minimum, you should apologize for your libelous statements because it's the right thing to do when you find yourself having made wrong assumptions or been misinformed and took inappropriate action and are pointing the finger who is on your side. Always secure all the facts prior to making outrageous and negative comments that, once on the internet, never leave and will cause damage to my business forever, which is built on trust. You, my friend, called me and my business nothing short of a scam and that is completely and utterly false. I am personally offended as I have never had a claim against my malpractice, my fidelity bond,nor have I ever had a client make an accusation that I did not send their money on or before the date they closed in my entire professional career until this very day.
I apologize for the clerical error's as I am dictating this while driving because, as most of you can understand,being self-employed, that when in accurate information is posted about me the calls into question my character, an immediate response is required.
I apologize to all that feel this response was too strong but I have worked very hard to secure the reputation I have and, without a positive reputation in my field, I cannot feed my wife and two beautiful children.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Robert Hetsler This is a tough one I did not realize qualified intermediaries require no licensing and no over sight what so ever.. so I can see where folks could get freaked out... there is a huge amount of trust.. and we all know about that one nefarious individual who went on a rampage with clients money.. and if the intermediary I was working with had a Regius office I would be somewhat concerned as well.. but I am sure you guys will work it out.
Lots of trust goes into this unlicensed and unregulated business.. from what I can see.. and your dead on your reputation is EVERYTHING and your correct to protect it...
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Robert Hetsler I just remember watching the American greed episode with the little guy from Canada who bought up mom and pop intermediaries and then rampaged them... millions lost.
I am sure that incident led to some of these regulations.
1031 starker started with the starker family here in Oregon swaping timber land I believe .
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
9y
Hi Robert and thank you for your response.
To be clear, it is not my intent to hash this out via an online forum, however, this was my last attempt to contact you and/ or your company prior to engaging legal action. Thank you for responding.
I don't do 1031 exchanges, it's not my line of work, thus the reason I hired and paid your company to perform the process.
I called, at minimum, 8 times today to your main office line. I tried every single digit option available to reach someone, no answers. My friend in Jacksonville (who subsequently came to your Regus office) called from a 904 number. The call was answered. To me this indicates you/ your company was dodging my calls. Additionally, my attorney called this afternoon, left a message that he was interested in performing a 1031 for a shopping center transaction. Within 1 minute (I was still on the phone with him) his call was returned. Once we informed, (whom I guess was a sales agent) the gentleman what our situation was and that we have been trying to contact you/ your company all day, he said he would have to call us back. Check your phone logs, it was 5:46 EST. yet again, no reply
After googling your "office addresses" each one is a Regus keyman office. The reality is, on many occasions, company can pay Regus a small fee so they can receive mail at the Regus office thus creating legitimacy of a business practice. This, combined with my friend going by your Jacksonville office, lack of return phone calls, avoiding text messages, and no email responses set off red flags that something suspicious was happening. Again, my naievity could have been in play, but this isn't what I do everyday and have trusted someone I don't know with $113,000.
An additional google search by attorney uncovered the February 28th judgement of case number SC12-3727 where Hetsler Mediation and Valuation was prosecuted by the FL State Bar for unlawfully practicing law in the state of FL. Out of respect, I will not post the link here.
Subsequently, around 7:52pm est I received a call from someone in your office stating that he would send me an email with proof that the wire went through and was accepted by my attorneys office. It's currently 10:26pm and I have not received an email. I verified its not in my junk folder either.
The only email I received from you was at 12:47 this afternoon saying you personally called the bank and the funds would arrive within the hour. I emailed a response at 2:14 noting that the funds had not arrived. Again, no response from you or your team. (As noted above you have a smart phone and are connected electronically to your affairs).
I get it, mistakes happen. I'm sure I made plenty today myself; however, I didn't make a mistake with $113,000 of someone else's money then refuse to contact them when there is concern... and it was not until I took to a fourm to discuss concerns and ask for council from others that I received a response from you.
Again, I just want the money wired into the account and your company to perform the work in which it paid you to do. (Speaking of payment, my credit card was charged twice and it took me reaching out on multiple occasions to get a refund for the "accidental" charge).
I would anticipate this matter to be rectified by 10am tomorrow. At that time I will gladly post on this thread how you kindly cleaned up this mess.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
wow, is all I can say, I know a few intermediaries personally and there are some very well known one's on bp here.. somehow something does not seem right here.. hope it gets straightened out..
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@John P.@Brandon Lowery I think its a mistake to delete the thread I don't think you can.. but maybe management will do it.. this is a great learning experience for those contemplating a 1031.. to know that the industry is basically unregulated and that who you choose is absolutely critical ... to your investment safety. nothing against this company as I don't know them.. but this thread brings up great back and forth of what happens and how it happens and how the industry kind of works.
Rental Property Investor · 34209 · Member since 2015 · 48 posts · 22 votes
9y
I second @Jay Hinrichs. Before this thread I did not know about the unregulated aspect of 1031 QI. Now I will be extra cautious when taking the services of one. I believe I have found a couple of good ones here on BP to start with.
Crossville, TN · Member since 2017 · 121 posts · 168 votes
9y
If you are holding someone's money as a qualified intermediary, you need to be available 24/7. When someone entrusts you to their money, you need to go to extreme measures to insure their trust. Communication is the best way to do this.
If you are holding someone's money as a qualified intermediary, you need to be available 24/7. When someone entrusts you to their money, you need to go to extreme measures to insure their trust. Communication is the best way to do this.
True but what does it matter if a scammer is "available 24/7?" They might be on the phone and replying to emails but at the same time flying to some lawless island nation with your money. Seems better to use a large 1031 company!? The one I last used is a subsidiary of a major title company. I was never worried.
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Jay Hinrichs I think the term "qualified" confuses some people. It only means someone that is not "disqualified" by the tax code. Relatives and professionals that have acted as accountant, real estate agents, attorneys that have worked for one of the people in the transaction are about the only people disqualified.
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
9y
Hey guys I did want to clear this thread up. I did indeed get my money after a lot of work on my end.
Now that I think about it, after I made the transfer I got to email after email after email that was an auto distribution email. This email, or all of them, was referring to investing in storage unit facilities with the 1031 money. My suspicion is he capitalizes the storage facilities with 1031 money.
Anyway, I just wanted to mention that I did get the money. However I will not be using his firm and will do more due diligence in the future on my next flip
Dallas, TX · Member since 2017 · 4 posts · 5 votes
9y
@Brandon Lowery My business is going through the exact same situation with @Robert Hetsler. He received over 700k in our exchange and was supposed to wire our money yesterday. We were told yesterday "they were at the bank in front of the teller wiring the funds". Obviously, that did not happen. We could potentially lose the property that we closed on yesterday. We have been trying every number possible in the same manner you did with no luck. Now we cannot get ahold of anyone. Any suggestions as how you were able to resolve your issue? We are currently calling the FBI for advice as well. Thanks!
Dallas, TX · Member since 2017 · 4 posts · 5 votes
9y
I agree with @Brandon Lowery. My best guess is he is comingling funds and using them to capitalize his other ventures. Wish I would have seen this post before we used him. Just got ahold of someone in their office handling "new clients". He told me he would get to the bottom of it. Doubt that will happen but we will see. Filed a report with the FBI and now contacting our attorney. Will update as I have new information.
Dallas, TX · Member since 2017 · 4 posts · 5 votes
9y
Update:
Got in touch with @Robert Hetsler 's assistant. She "swears" she was with him at the bank yesterday when he wired the funds. Told them we would not back down until we received proof of wire from the bank or at the very least a phone call from him with a legitimate excuse. She said he was unable to speak at the moment. Convenient for him.
At best: Do not use his company as there is zero communication, they make false promises, and they screen your calls.
Rental Property Investor · Greer, SC · Member since 2017 · 51 posts · 33 votes
9y
This is like a soap opera, I want more. It's horrible if something illegal is being done. As other have mentioned this is a good learning experience for people. It's also so dramatic, I can't get enough.
This is like a soap opera, I want more. It's horrible if something illegal is being done. As other have mentioned this is a good learning experience for people. It's also so dramatic, I can't get enough.
You seem to be taking this a little light hearted considering people might be out a ton of money. Imagine if it was your money. You might not be so cavilier about it.
Rental Property Investor · Greer, SC · Member since 2017 · 51 posts · 33 votes
9y
@john p. Hmmm don't they say it's best to learn from other people's mistakes, so you can avoid them? I knew about 1031's, I didn't know the process nor the risks. This is a lesson for me and many others. I am not taking joy in people getting swindled out of their hard earned money. Doesn't mean I am not fascinated about others who have possibly been conned, nor the outcome.
Dallas, TX · Member since 2017 · 4 posts · 5 votes
9y
After the long weekend and many, many hours of stress, the situation was resolved this morning. This is thanks to the help of one of @Robert Hetsler 's employees who when she discovered there was a problem, was very honest and communicated with us. If it wasn't for her, the problem would have been ignored. It was very scary that the one person who has access to our funds never did and still never has contacted us. Apparently (some assumptions here), the issue was that the wire was sent without a signature on the first attempt (Thurs). Friday, after the error, instead of going to the bank to correct the problem, they tried to send a fax with a signature which the bank would also not accept. Either way the money is safe and the seller's of our deal were kind enough to not hold us in breach of contract. If any additional information comes up, I will post another update.
