Nick Vertucci REVIEW: Customer Satisfaction Commitment: NICK VERTUCCI committed to customer satisfaction, Nick Vertucci has proven and implemented strategic changes to insure clients success, focusing on finding ways to help clients search for new opportunities effectively even in the sort of challenging market we face today.
IN 2008, I purchased through Innovative Holdings Group, LLC two HUD section 8 properties in Detroit, Michigan. IHG's process involved a "hard money" locan which turned out to be a promissory note disguised as a mortgage. Having lost by job during the 90 day period of capital improvements, I was not granted the "refinancing" mortgage required to actually "own" the properties. I was told that I was stuck with a $100,000,000 mortgage since the work was completed and yet I could not longer qualify for the mortgage.
I was out of pocket over $8,000 on these two properties which included consulting fees, title searches, and all the other expenses that needed to be paid at closing. Because of my own investigations I learned that the $100,000,000 IN MY NAME was in fact a loan on the property by a private equity firm. The principal of the firm who I had been forbidden to contact finally told me that the foreclosure would be on the properties (on IHG) and not on me personally. The capital promissory note for renovations was actually on IHG since I was told that this kind of "mortgage" follows the property. I had requested getting of the deal for several months and it turned out that I could have been removed from the contract at any time (as told to me by the private equity company holding the loan.
At his suggestion I signed over the properties (which I did not own as I thought I did) to Nick Vertucci and IHG which relieved me of the obligation of the note. However, I spent or wasted $8,000 on deceptive counsulting (IHG) and closing costs. Since I never really owned the property, I was being used by IHG to pay for their properties and the capital improvements if I had let them foreclose on me or tried to continue making payments (fortunately-I was smart enough not to pay any more money after I found out that I could not refinance the properties). I offered a negotiation with IHG at a $3500 loss to me (app. half) which they refused.
I have not filed a small claims court action but the service is proving difficult however I will pursue the case until I have been made whole again.
2 Updates & Rebuttals
Jane doe
Irvine,California,
U.S.A.
Corroborating Owner's Story
#3UPDATE EX-employee responds
Thu, February 28, 2013
As a formal principle in Innovative Holding Group and partner with Nick Vertucci I would like to corroborate his side of the story. Here are the facts:
1. Lesli Fox signed a written agreement to purchase two properties in Detroit, MI. IGH agreed to assist her with acquiring the property, rehabbing the property an help her finance the entire deal using a short term hard money loan and later permanent long term financing.
2. At the time she signed the agreement we had her send her tax returns to our lender to make sure she would qualify for long term financing so that the short term loan could be paid off. We take this step to make sure that investors who use a hard money loan can in fact refinance and qualify for permanent financing. Our accountant said because she had a job and steady income for the past two years it would not be a problem.
3. Leslie in fact did sign loan documents for the short term hard money loan. No one forced her to sign those documents. She fully understood this was a short term loan that would be paid off within 90 days.
4. During the 90 day period that the house was being rehabbed Leslie was fired from her job. Because she was fired, our preferred lender was not able to obtain long term permanent financing because he could no longer verify she was working. This unfortunate circumstance was beyond our control and no fault of our company (nick and IHG).
5. Unfortunately for Leslie, she was legally obligated to pay off the hard money loan which if she had the cash she could have and owned 2 rental properties free and clear.
6. IHG (Nick) had zero legal obligation to take back the properties and sell them to a new investor so that Leslie's hard money loan could be paid off and she could be freed from any legal obligation. However, because we had a good relationship with the hard money lender, IHG agreed to help her.
7. One thing Leslie failed to mention is that she stalled and did not quit claim title of the properties back to IHG for months which did not allow us to sell them to new investors. Because she was uncooperative the hard money loan accrued more interest than necessary. This cost was NOT passed to Leslie but was absorbed by IHG (under no legal obligation).
8. After we finally moved the 2 properties to new investors Leslie decided that her initial consultation fee that she paid to IHG should be refunded. This totaled $8,000.
9. IHG performed exactly what was laid out in the written agreement that she signed. A small claims court has recently ruled that he agrees with this assessment 100% and ruled in IHG's favor.
10. Leslie fails to understand that not only did IHG eat all the additional fees on the hard money loan, but we also waived our consulting fee to the new investor because of the additional costs of owning these properties (to make the numbers work). This cost us an additional $8,000 that we would have made by selling those new investors 2 completely different properties. In reality IHG lost $12,000 in this transaction by helping Leslie out of her situation.
11. Leslie has taken zero responsibility for her role in this transaction. IHG has gone above and beyond what 99% of investment companies would have done. Most would have said "that's your problem now, not our" and would have let her be foreclosed on by the hard money lender.
I hope readers realize that it too easy to go online and write slanderous comments about an investment that did not go perfectly. IHG and Nick Vertucci has built a reputation of doing the right thing 100% of the time. Our name and integrity have held up since it's inception in 2007. IHG has helped hundreds of investors acquire real estate that is increasing in value and providing monthly passive income.
Nick
Orange,California,
United States of America
SETTING THE RECORD STRAIGHT
#3REBUTTAL Owner of company
Wed, February 27, 2013
The record needs to be set straight and maybe this will even help the reporting person understand as well. The reporting preson is Leslie Anne Fox who purchased two investment properties in 2008 from our company.
Leslie contacted us vetted us and asked to buy two properties. What Leslie is trying to articulate on the structure of the deal is this.
Back in 2008 investors used a strategy of buying property using a hard money lender to short term buy and rehab the property until permanant financing could be put in place to take out that short term loan. So simply put a short term private money loan was borrowed by Leslie and she was suppose to take that loan out with a long term mortagage. Pretty common.
Our company helped Leslie qualify for the short term loan and we also made sure her long term financing was securly in place as well. What Leslie so conveniently forgot to mention is in this process she lost her job !!! She was let go ! Now Leslie could not qualify for her long term financing anymore. So she was stuck in her short term loan.
Ok so here was solution. Now understand this was not in our control and Leslie was accountable for these loans NOT US! So in good faith we told Leslie we would help her. We said we would re-sell her properties for her at no charge or costs. But Leslie wanted us to pay for all her carrying costs in her short term loan. We explained to Leslie that those were her costs and we didnt fire her from her job someone else did. She would not accept these terms at first and continued to rack up carrying costs on her own behalf.
Eventually she agreed and understood her situation was her won and not ours. We re sold her properties and made NOTHING !!! To help her situation.
So do you think Leslie was grateful? NO she was not. As she mentioned four years later she filed a small claims lawsuit against us. claim # SM 12A01808 and demanded 8,000.00.
Leslie unfortunately has no case and the judge was dumbfounded why she would sue us considering we helped her because he understood the facts. So Leslie lost her unfounded plea.
Now Leslie has the nerve to post this slander. Unfortunately for Leslie she will be hearing from our attorneys. Because lets face it if you read these posts it may detour you from working with us. And we lose and you lose out on one of the greatest investing systems in the business.
Again its very unfortunate that ANYONE can post ANYTHING with no facts and try and hurt ones reputation.
I hope the rebuttal helped.
Respectfully,
Nick Vertucci