I think you got some answers and some new questions with the unaudited
results.
1. one has to assume that the balance sheet was verified by customers
and bank statements.
2. one has to wonder where in the balance sheet are the legal proceeding
expenses. we know that would be a big number as I think they are
paying for most or all UDF funds. only other option is that UDF
itself is paying for the other entities, but from where? which leads
us to
3. how much are the management fees IV is being charged? based on what
asset value?
4. since the fund is recycled mostly to existing customers, what are the
expenses of management now?
5. balance sheet numbers were net of reserves. how much are the gross
numbers and how much are the reserves?
6. if IV paid the $8.2M fine to the sec (for their managers' lapses
vs the investors), how was that accounted for? was it a straight
expense?
7. going back to 2: are legal fees not books as they are at risk?
(no assurance of recouping).
8. to your question: realized losses - a schedule. how much was created
by forced selling in order to close out loans? how much was later
organically.
9. what is in the joint ventures and what lands at what valuations plus
who are the partners and how much or how did they pay for it?
joint ventures could be where a lot of value resides. did they
bring foreclosed lands of bad loans into it?
I feel by the end of this year much of the legal Bass deal would be
eased and the data will be going out. until then, I am optimistic
based on what the collateral is, but everything is in the air.
AI
