All Forum Posts by: Matt Higgins

I cancelled my account and still haven’t received my 12000$

If someone mugged me for 12k on the street a few weeks ago and I never got my money back I would still be upset

The fact that you got your money and I didn’t get mine makes me feel worse.  I wouldn’t spend it because I’m going to have a lawyer try and claw it back from those who were paid.  If it’s a legit company with the insurance they claimed to have  give me my money or let me kow what insurance company I should contact.  if this is legitimate company respond to my email or turn your customer service number back on.  

This company needs to go away.  My assumption is that you work for this company or are on the list of people that he’s willing to pay.  How do I get on that list?

Everything this Rick S said was a lie.  "The bank had our money on hold and would release it soon",   "There will be a 3-5 day delay in processing October payments because of a change in banks", "I will update you all later on in the day",   "We just left a meeting and they are saying funds will be released Wednesday or Thursday".....lies lies lies.  

This is posted on their website

"Our servers reside in an access-controlled data center monitored by video surveillance and roving security guards 24/7.
We have application level monitoring of logins and transaction activity.
We are fully insured for Technology Risk, Professional Liability, Fraudulent Activity, and Privacy Breach."

However, he won't list his insurance company or who our legal reps. are to file a claim. Someone said, (I haven't confirmed) -they called the dept of commerce to see who the registered owner of the company he is blaming the fraud on and the owner came back as erentpayment LLC.

Like I said all along.  This is fraud.   Now Rick is admitting its a fraud.  Everyone who urged caution and allowed this person to perpetuate this scam longer, when he clearly knew people were out their money, and did not warn them should feel some responsibility for the losses customers incurred.  This gentleman used this platform to promote and grow his scam.  Then members of this platform urged caution and accused people who had thousands of dollars stolen from them of rushing to judgment.  Sad day.  I feel even worse for the people that didn't have the money to lose.  

I called the Colorado Attorney generals office before filing a complaint yesterday.  I didn’t want to be accused of filing a false complaint. 

They retuned my call today and asked me to file the file the complaint with both their office along with the Office of internet fraud.  IC3.gov

Again, the office of the attorney General in Colorado asked me to file a complain and seemed to be already aware of the situation.  They are not as confident in the integrity or erentpayment.com as the bigger pockets community seems to be....  

I hope you are right too.  

So you also think people should keep using the platform?   Just have our customers keep sending them their money and wait for THEIR DEPOSITS to be released?  Or would you discontinue use of the platform?  I'm baffled that you really think most customers should understand when their rent doesn't show up in their account in a couple weeks.  If a tenant didn't pay for a couple weeks you would evict them.  If 60 of my tenants didn't pay their rent for two weeks I would be worried about going out of business.  Agreed, that the legal process of hiring an attorney and firing out a demand letter would be  a slow process, but surely the authorities should be able to verify if there was or wasn't wrong doing in this situation quicker than a couple years.  I guess it's easier to say "let him focus on resolving the issue vs making you feel good while it happens" when it's not your money.  

Get real- if they aren't paying their old customers do you really think they are going to pay their new customers?

I honestly appreciate the discussion Matt.  Thanks for trying to put people at ease.  I wish I could share your optimism and I hope there is egg on my face at the end of this....

My wife found this company on bigger pockets.  She most definitely is in the right, and boarder line obligated to inform the public that a company that used to accept payments from tenants, and disburse the funds to landlords is no longer longer disbursing the funds to landlords.  Furthermore, they have shutoff their phones and customer service department, not updated their customers as to the status of their funds, and refused to name their banking institutions or legal representation that they are using.  

This is most certainly a fraud, and a large one. If not, they should be updating their customer base as to where their money is at, and when they will get it. This rent collection and payment scheme is the perfect Ponzi scheme. They take a clients money and can move it from bank to bank like it's their own money. (Matt, thats apparently what you think happened). Thus, proving the lack of oversight involved in this kind of business/industry. As long as they can grow their customer base the scheme continues. The creator doesn't even have to put himself out there as the frontman of the scheme, and can hide behind an LLC. Interestingly, Rick S is a "pro" member, claims to be the manager or owner, and has 397 post on bigger pockets. I encourage him to comment, or better yet send me my 13,000$. At this point I doubt either will happen.

I hope I'm wrong, but when the company shuts off the phone and fails to deliver on the "updates" they promise.  You have to fear the worse.  This company is still accepting "new" money and the public needs to know.  I don't want to come across as confrontational, but the public needs to be made aware of the problem/fraud.  

I would look into buying a property with management already in place.  Verify the numbers you are given from seller with current management, ask them about issues with the building, and ask them if they're willing to stay in place.  I would also check their reputation with another another owner or two that works with them

I love it. The best part about real estate is you can start with a little and potentially build it to something big. Who cares about LTV when you're starting out. If the economy goes way south you will have the experience to build it back up by buying land contracts (hard to find one these days). I'm with the other guys that operate at over (and track) at least a 60% equity position in my portfolio, but thats only because I worked so damn hard for the money I invested in it. I live in the TC and I'm personally worried about MPLS housing prices getting too high, rent being unaffordable, and the amount of new units coming to market. However, I still see some "deals" in Saint Paul if you you are comfortable working on the 130 yr old up/down duplexes. Not my hustle.

Anyway, I was able to get my lender to lock in my loans long term. Not even sure it was the right thing to do as the 10 year bond seems to be going the other direction again. I would try to get the LTV over 25%, look into bringing in some investors, probably best to avoid friends and family, and keep doing what you're doing. If you buy a deal that is putting cash in your pocket every month you are on the right track. I can't see the bank closing down a LOC, but if you bought a deal you should be able to get a lease in place and finance.

I have a brother in law who is just graduating college, and I know it's not the right time in the cycle, but still 3 percent down on a 4-plex in rural Minnesota.  I don't think he could lose.  

I agree w john.

I would advise you of the same thing that I try to tell myself when these situations arise

It's only money, this is a cost of doing business, I don't take these situations peronal 

Unfortunate that has kind of become my mantra that I say over and over in my head

I have never never held a rental property in n mpls.  Flipped a few and I think they are easier to work w on that end than St. Paul.

From an outsiders perspective it seems like a horrible place to try and do business.  The city and newspapers put the screws to the landlords in the area.  Two years ago it was that khan that they did all they could to run out of town and defame him in the paper.  Last month they picked their man of the year 2017 a steve frenz, they pulled his licenses and fined him about 200,000$.  Now, obviously every tenant he ever had is lining up to try and take him to court.  Seems like they complain about the lack of affordable housing and then fine, defame, and pull the licenses of people who attempt to provide affordable housing.  Obviously I don't know the ins and outs of what happened.  

Clearly it's a difficult place to do business.  Class D properties.  All that inventory was so cheap a few years ago and has really came back.  There are some good pockets like west of penn or above 40th  Ave, but I would definitely cruise the neighborhood you buy in before  you buy.

my guess is they will let you back out and return your earnest money.  They have offered me properties that have fell out of contract from other buyers before.  Please follow up and let me know what they do, kinda curious.  They are geared towards investors and volume.  I would guess most of their buyers bid and buy before viewing the properties.  I can't amagine them digging in heels over 5-10 grand.  If u think it's a good flip and located in Mn send me a message and maybe I would take on the contract.

Generally they seem customer service orientated imo.