By: clockwatcher10 16 Nov 2005, 12:51 AM EST Msg. 57294 of 71133 Jump to msg. # This link was sent to me. I'm not sure the sender wants to be named, so for now he/she will remain anonymous. It's a long read, but stick with me. Much of the information is useful for looking up additional data on the following website. This information is interesting. The reader will have to decide what it all means to the future of PRRM.
If your browser does not have a .tiff viewer you can downloaded .tiff viewing software from the link below. I installed the program into my Mozilla FireFox browser. Note: On installation the program will ask for your name, etc. I put in a couple of letters in each box and the software installed.
When using this program be mindful of the positive/negative view buttons. It'll help you see a poorly scanned document when you select the negative button (page turns black, text turns white.) Also on each document you load check to see if the "next page" button is highlighted. Many of the tiff files have more than one page.
Now, on to the interesting stuff.
When you type in “burgess” you should see three items listed as “Burgess Daniel” out of a long list. (Scroll down to find them) NOTE: You can also type in Skiershop for more listings.
If you've selected the document where it says:
Debtor Full Name AUDRA ALLEN Mailing Address 275 WTOWE HOLLOW RD Full Address STOWE VT05672 Debtor Full Name DANIEL BURGESS Mailing Address 275 STOWE HOLLOW RD Full Address STOWE VT05672 File Number 05-189733 Date Entered 07/01/2005 File Status ACTIVE Secured Party Organization Name BAYVIEW LOAN SERVICING, LLC Mailing Address 4425 PONCE DE LEON BLVD. STE 400 Full Address CORAL GABLES FL33146 Collateral 1K50URR1.TIF
you’ve selected the document that’s the subject of this message.
This particular filing MAY be the documents filed for the building purchase mentioned in the June PR,
"STOWE, Vt., Jun 24, 2005 (BUSINESS WIRE) -- Skiershop Mountain Sports announced it completed the real estate purchase of 580 Mountain Road, Stowe, VT for the purchase price of $760,000.00." If you read this entire PR you’ll see that the property was purchased as an investment property. “We are especially thrilled to have closed on this prime real estate in anticipation of great appreciation," said Skiershop President Bobbie Roehm.”
There are several items of interest related to this link. It’s a bit complicated but worth your attention:
1) The “active date” is listed as 7/1/2005...Exactly 7 days past the PR of Skiershop purchasing property for $760,000. Also in the .tiff document, note the warranty deed date listed as: 6/20/2005, four days prior to the PR. This establishes the proximity of these documents to the 6/24 PR, making it highly likely that these documents relate to this PR.
2) The real estate listed on this document is interesting. It reads exactly like you’d expect if the property were investment property, as mentioned in the PR. “….Tibbets House Condominium Apartments, 4, 5, 6, 7, 8, 9 together with the percentages ownership….” So, the purchase was Condominiums. Dan’s in the Condo business!
3) The next item: Bayview Loan Servicing. If you visit this website you'll find that Bayview Loan Servicing is a special type of service. Instead of a traditional loan to purchase the property mentioned in this document, Bayview facilitates "Seller financing." In the old days we called it a Land Contract Agreement. In essence, Bayview facilitated a loan between the seller (owner) of the property and Audra and Daniel Burgess (purchasers) of the property.
This link will tell you everything you need to know about the arrangement.
Under this arrangement, the seller wins as long as Dan makes his payments. The seller will receive all the interest and principle from Dan. If Dan defaults, the Seller can take back the property and Dan’s out the money he’s paid to date.
Based on the three judgments against Skiershop, one in 2002 ($10,985), 2004 ($3,444), 2004 ($46,000 against Skiershop and Barbara Rhome) plus unpaid taxes of $64,000, Dan’s credit may be bad enough that he does not qualify for loans from traditional sources (such as a bank) and had to turn to this method for financing.
SOME OBSERVATIONS:
1) At one time we speculated where the money for this transaction came from, collateral etc. We also speculated about the financing arrangements and what the company may have looked like (financially) in order to obtain financing for such a large loan. Based on these documents, the “loan” was not a traditional loan. We now know that Dan didn’t get a traditional loan (bank) for $760K. His down payment to the seller may have been for as little as 10, 15, 25 or $50,000 with the rest to be paid to the seller over the period laid out in the Seller Agreement.
2) Depending on the relationship to the seller, Dan may have some leeway with late payments or none at all. If the seller is friendly to Dan then late payments may be dealt with differently than if a Bank made the loan.
3) Was Dan’s financial status of such poor quality that he’s unable to obtain financing via traditional routes? i.e.: Bank?
4) If so, how does this correlate to the financing that MountainMan is hinting at coming from Daniels’ and Associates to PRRM? The collateral terms on the Sellers Agreement are quite extensive. How will this affect future financing if Skiershop were part of PRRM now? The fact that we don’t own Skiershop at this time is, perhaps, a good thing?
5) Who is the co-debtor, Audra Allen? This is a new name for me.
6) The owners (sellers) of the property are listed as Bruce D. Bell and Leslie Gauff, on the warranty deed. Anyone recognize these names?
7) If we eventually purchase Skiershop the property will be linked to PRRM via this “sellers agreement” and therefore the terms the seller enjoys for reclaiming the property, should Dan default on the Promissory Note. (Unless Dan were to qualify for traditional financing to pay off the sellers and dissolve the agreement.)
8) What is Skiershop’s role in the Condo’s? What will the income and expenses for the condo’s do to our bottom line should we close the LOI?
9) Based on the PR dated: “STOWE, Vt., Jun 29, 2005 (BUSINESS WIRE) -- Prime Rate Investors, Inc. (OTC.PK: PRRM) announced its wholly owned subsidiary Stowe TV-10 is expanding and moving its facilities. The new offices will be located at 1799 Mountain Road in Stowe.” Based on the addresses, the condominium property does not appear to be the same property listed in the PR 6/29 PR. The addresses are different. So anyone who connected the property listed in the 6/24 and 6/29 were wrong.
10) To date, I have not discovered any documents relating to the building mentioned in the 6/29 PR.
It’s getting late. This will have to do for now.
Anyone who wants to continue please do. Extra eyes on this may offer other, better perspectives.
Market Data 
Markets 
AI
