Miss Fortune has discovered that Robert Buckhannon and Kelly DeMoss, on behalf of the On Deck Sports Bar and Grill, went fishing in the commercial hard money market in October, putting 27 new investors at potential risk while reeling in a $456,000 mortgage loan.
Official Calhoun County Register of Deeds records reveal that the warranty deed for the four Battle Creek "lots"--lots 60-61 and 70-71--was recorded on November 5, 2013 showing the October 8 sale amount as $107,000. According to official Battle Creek property records, the legal description for 225 W. Michigan Avenue follows:
BC CITY RB4 PART OF LOTS 60, 61, 70 & 71: DESC AS COMM NW COR OF LOT 65 - S 74 DEG 30 MIN 00 SEC E ALG SLY LI OF MICHIGAN AVE 277.50 FT TO TRUE POB - CONTN S 74 DEG 30 MIN 00 SEC E ALG SD SLY LI 46.95 FT - S 15 DEG 30 MIN 00 SEC W 94.46 FT - S 74 DEG 30 MIN 00 SEC E 10.22 FT - S 15 DEG 30 MIN 00 SEC W 40.54 FT - N 74 DEG 30 MIN 00 SEC W 57.17 FT - N 15 DEG 30 MIN 00 SEC E 135 FT TO POB, SUBJ TO & TOGETHER WITH EASE OF RECORD ((ASSESSED WITH 0254-00-084-3 IN 1996))
On the same day, a $456,000 mortgage was recorded against the On Deck property with these 27 mortgagees/investors:
Party Type | Party Name |
MORTGAGOR | ON DECK SPORTS BAR & GRILL LLC |
MORTGAGEE | BLACKBURNE & BROWN MORTGAGE FUND I |
MORTGAGEE | BLACKBURNE & BROWN MORTGAGE FUND II LP |
MORTGAGEE | VOLUNTINE JACK E TRUST |
MORTGAGEE | VOLUNTINE NANETTE M TRUST |
MORTGAGEE | HOTTMAN TERRY |
MORTGAGEE | HOTTMAN CAROL |
MORTGAGEE | STERN FRANK |
MORTGAGEE | CHOY FAMILY TRUST |
MORTGAGEE | WOLF SURVIVORS TRUST |
MORTGAGEE | GEE TOM W |
MORTGAGEE | GEE MAY W |
MORTGAGEE | SAM PHUNG INVESTMENT LLC |
MORTGAGEE | FEYS EARL L |
MORTGAGEE | FEYS AIZHEN |
MORTGAGEE | JENNINGS FAMILY TRUST |
MORTGAGEE | WOLF ACK |
MORTGAGEE | EDWARDS DAVID G 401K PROFIT SHARING PLAN |
MORTGAGEE | NORMAN MARK TRUST |
MORTGAGEE | SADDORIS FAMILY TRUST |
MORTGAGEE | LESKY OLAF |
MORTGAGEE | LESKY KRYSTYNA |
MORTGAGEE | STEPHENSON MARK |
MORTGAGEE | KUCHARSKI FAMILY TRUST |
MORTGAGEE | GENDRUEAU AVA |
MORTGAGEE | NELSON ELIZABETH C TRUST |
MORTGAGEE | BHOLA KRISTNA |
MORTGAGEE | BHOLA JENNIFER W |
The legal dispute between former Robert Buckhannon business partner Stephen P. Anderson that temporarily closed the restaurant was recently settled, and the bulk of the money likely went to satisfy the terms of the confidential settlement agreement.
Hard money loans for commercial real estate are often a matter of last resort. They aren’t good deals, but they can save a financing situation that has gone critical. Most hard money loans come with significant upfront costs and astronomical interest rates.
But hard money loans are backed by the value of the property, and not the credit worthiness of the borrower.
Now could a guy like Robert Buckhannon give investors a false sense that short-term, high interest hard money loans were secure and likely to be repaid?
Looks to your girl Miss Fortune that he may have done just that--over and over...and over again.
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