I suggest you do not invest with Spartan Home Loans unless you are interested in not only losing your investment but also owning worthless property and paying taxes on property you don't own.
In September of 2007 on the advice of a fellow physician I began investing my IRA funds with Spartan Home Loans. For the first few years my investments increased in value incredibly. I kept rolling over my gains which were tax free inside retirement plan. In 2012 my IRA account's value was $361,431.64. Presently the value is $76,173.35 in loans which may be worthless. So my retirement plan has decreased in value by approximately $300,000. Since this $300,000 loss was incurred inside my retirement plan I cannot deduct it from my taxes. Spartan Home Loans notified me recently that the value of one of my investments ($185,000) had "extinguished."
How can I pay taxes on assets that don't exist? A couple of years ago I turned 70 so I am required to take a minimum distribution from my IRA.
IRA Services is my custodian and they hold the assets at the purchase price so they sent a notification to the IRS that due to the assets I had ($361,431.64) my minimum distribution was $20,000. I had to declare $20,000 distribution on my income tax even though there were no liquid assets. Probably no assets at all. This cost me about $10,000 in taxes.
How did I end up owning worthless property? About 8 years ago Ron Bieber told me that he had access to a loan at 4300 Gatson Road in Bakersfield. He said the property was worth $216,000 and that there was a $65,000 first. The borrower wanted $50,000 for a second. He convinced me that this was a "no brainer." The loan to value ratio was way over 50% so I invested $50,000 and later Spartan Home Loans told me I needed to add another $14,000 to bring first deed of trust up to date. In May 2015 this property went to foreclosure sale for about $65,000. It didn't sell so somehow Spartan Home Loan transferred its ownership to me.
The property used to have a well but it dried up. Difficult to sell a property without water. Ron Bieber told me that it would probably cost $40,000 to drill a new well. So now I own this property with all of the inherent risks of ownership and no possible benefits. I plan to "quit claim" my ownership. Last year an identical property across the street that had water sold for $30,000. I started to question what was going on and went back to the original loan documents. The original appraisal stated the value of $216,000 included an "Entrepreneurial Fee" of $75,000. I asked Ron Bieber about this fee and despite the fact that he has made these loans for many years he said that he hired the appraiser and that he had no responsibility for their determination of value.
Why am I writing this letter? For two reasons:
1. To encourage future Spartan Home Loans investors to rethink their options.
2. To find investors who have had a negative Spartan Home Loan experience. If others have similar issues with Spartan Home Loans or their related entity (Red Shield Servicing) then maybe this ought to be a class action lawsuit.
Each of the above statements are true and correct and therefore constitute my free speech.
Spartan Home Loans Reviews
I suggest you do not invest with Spartan Home Loans unless you are interested in not only losing your investment but also owning worthless property and paying taxes on property you don't own.
In September of 2007 on the advice of a fellow physician I began investing my IRA funds with Spartan Home Loans. For the first few years my investments increased in value incredibly. I kept rolling over my gains which were tax free inside retirement plan. In 2012 my IRA account's value was $361,431.64. Presently the value is $76,173.35 in loans which may be worthless. So my retirement plan has decreased in value by approximately $300,000. Since this $300,000 loss was incurred inside my retirement plan I cannot deduct it from my taxes. Spartan Home Loans notified me recently that the value of one of my investments ($185,000) had "extinguished."
How can I pay taxes on assets that don't exist? A couple of years ago I turned 70 so I am required to take a minimum distribution from my IRA.
IRA Services is my custodian and they hold the assets at the purchase price so they sent a notification to the IRS that due to the assets I had ($361,431.64) my minimum distribution was $20,000. I had to declare $20,000 distribution on my income tax even though there were no liquid assets. Probably no assets at all. This cost me about $10,000 in taxes.
How did I end up owning worthless property? About 8 years ago Ron Bieber told me that he had access to a loan at 4300 Gatson Road in Bakersfield. He said the property was worth $216,000 and that there was a $65,000 first. The borrower wanted $50,000 for a second. He convinced me that this was a "no brainer." The loan to value ratio was way over 50% so I invested $50,000 and later Spartan Home Loans told me I needed to add another $14,000 to bring first deed of trust up to date. In May 2015 this property went to foreclosure sale for about $65,000. It didn't sell so somehow Spartan Home Loan transferred its ownership to me.
The property used to have a well but it dried up. Difficult to sell a property without water. Ron Bieber told me that it would probably cost $40,000 to drill a new well. So now I own this property with all of the inherent risks of ownership and no possible benefits. I plan to "quit claim" my ownership. Last year an identical property across the street that had water sold for $30,000. I started to question what was going on and went back to the original loan documents. The original appraisal stated the value of $216,000 included an "Entrepreneurial Fee" of $75,000. I asked Ron Bieber about this fee and despite the fact that he has made these loans for many years he said that he hired the appraiser and that he had no responsibility for their determination of value.
Why am I writing this letter? For two reasons:
1. To encourage future Spartan Home Loans investors to rethink their options.
2. To find investors who have had a negative Spartan Home Loan experience. If others have similar issues with Spartan Home Loans or their related entity (Red Shield Servicing) then maybe this ought to be a class action lawsuit.
Each of the above statements are true and correct and therefore constitute my free speech.