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  1. #1
    Join Date
    Aug 2008
    Posts
    6

    Loomis Wealth Solutions: How It Works

    This is an absolute scam. It is a real estate based ponzi sceme.

    The NARAS high rate savings account is a traditional ponzi sceme where "investors" are offered a rate of return of 12% on money invested. The majority of the money went (its gone) to making mortgage payments, covering genral overhead including salaries, and also making interest payments to a few "investors".

    Very soon LOOMIS WEALTH SOLUTIONS will no longer be covering mortgage payments, so all of the "members" who recently (or in the past) bought investment properties through LWS will be obligated to manage making payments on their own. Most to none of the properties have a positive cashflow, and many are very negative. In fact most are un maintained and not currently tenant occupied.

    The company made money by having its members buy properties or by having people invest into thier NARAS fund. The properties are purchased from highly motivated sellers, usually builders or companies who converted apartments to condos. These sellers were likely in distress with past due construction loan debt, and were willing to sell their homes below maket value. HOWEVER, the purchases were structured at market value or HIGHER so that a margin could be established between the payoff to the seller and the loan balance, which in turn gernerated a commission to LOOMIS WEALTH. For example, a property may be bought by a member at 380,000 with a mortgage loan of 304,000. The payoff of the seller may be 200,000 or so. The difference between the loan and the payoff was where the "profit" was generated.

    Loomis wealth ran out of money, and probably wasnt actually having buyers put money down on the properities. Fradulent escrow compaines would fraudulently varify down payment money. As long as the purchase money loan balances were greater than what the seller needed, there was money being passed on to loomis with every purchase. The problem is that for whatever money LOOMIS obtianed, the company would have to assume the mortgage debt (maybe $300,000), as his company was promissing a cashflow to its investors. No real effort was being made to actually rent the properties, so as you can imagine, after 300 or more purchases, the monthy expense of making mortgage payments is a multi-million dollar deal. If he was clearing $50,000 per propety, it was through incurring another $300,000 in debt. If the rate on that mortgage was say, 6.75%, what did that $50,000 really cost per month? Add to that expense the cost of his employees, the operating costs, plus all the money he owes from NARAS investments at 12%!!!

    To keep employees around, Lee has to offer exagerated salaries, which only compound the financial strain of such a business.

    There is no profit here. Just taking money from investors to cover heavy losses, and trying to finance enough purchases to use the loan money to cover the ever increasing debt load. All the statements being sent to his clients with so called NARAS accounts are nothing more than excell spreadsheet printouts, and have NO corellation to any accutal money anywere. The few clients that were able to cash-out simply benifited from the temporary liquidity created by new members investing, or new mortgages being created. Its important to display some fiancial ability, so when necessary, LOOMIS would make an effort to get someones money back to them. In these motivational seminar type scemes, you don't want people to start to experience any concerns regarding thier money. That would make recruiting difficult.

    This is a scam that is colapsing as this is being posted. The model was never successful, and this man never had any intentions of providing a service that was of any benifit to his "clients". If you invested money, you have more than likely lost it, and if you bought property, your credit may already be affected as LOOMIS WEALTH has run out of money and has been missing mortgage payments.

    If you think you are benifiting from this organization, you wont think that in the days to come. Even if you recieved your money on time. Even if you believe you got a great deal on an investment property. The money you were recieving was not from rental cashflows. It is simply money genrated from your mortgage. You are being paid money that you borrowed, or you are being paid money that came from your original deposit, or from some new investors liquidated 401k.

    This guy may end up featured on CNBC's "American Greed" show.

  2. #2

    Re: Loomis Wealth Solutions: How It Works

    411er1-

    Submit your concerns to a senior member coordinator or Lee's personal assistant. Bad talking a company when they are experiencing hard times is not the best way to approach any situation. The economy is down and money is tight everywhere. Some people give up, which I'm sure the president of this company could have done long ago, but he is still around, running day to day trying everything to recover his members and keep them happy.

  3. #3
    Join Date
    Sep 2008
    Posts
    12

    Re: Loomis Wealth Solutions: How It Works

    Quote Originally Posted by savyinvestor View Post
    411er1-

    Submit your concerns to a senior member coordinator or Lee's personal assistant. Bad talking a company when they are experiencing hard times is not the best way to approach any situation. The economy is down and money is tight everywhere. Some people give up, which I'm sure the president of this company could have done long ago, but he is still around, running day to day trying everything to recover his members and keep them happy.
    Savyinvestor; your full of %#$#. Do you work for the loomis organization?

    He is not trying to find out how fix his company; he busy trying to figure out how to stay out of jail!

    If you do work for the company; how did you become so brain washed, if you don't work for the company, how do you call your self savy if you believe in this company?

    So now that I insulted you and you feel bad about your self, I would like to add, I do so on behalf of all the people's lives you idiots just messed up.

    Here is a copy of my other post on here, be sure and check out the links, hope your not expecting to get some paychecks from this clown:

    For all those who were not convinced this company is not only a scam but also a one way ticket to some serious jail time take a look at this link for the Cease & Desist Orders by California against both Naras Fund and Loomis Wealth:

    http://www.corp.ca.gov/ENF/pdf/2008/Naras_dr.pdf

    http://www.corp.ca.gov/ENF/pdf/2008/LoomisWealth_dr.pdf
    Here comes the hammer ! :judges:

    I am still curious if HUD is after them yet...

    I believe I read either on this site or one of the other scam sites how they attempt to make a property cash flow.

    In order to sell the client a house that more than likely house does/did not cash flow so they write a loan back to the investor to give them money to hold the property over the period of time prior to sell so that the property can cash flow.

    In order to write loans to a natural person you have to have a license (that's a law folks!), I do not see what mortgage license or banking license Loomis Wealth owns in order to complete such an action.

    Can someone detail the explanation of how they explained this in the seminar for me?

    Property investment is not rocket science, in fact it is fairly simple math.


    PITI = (Principle, Interest, Taxes & Insurance) [This is what you owe on your investment property each month and does not take into consideration if the property has a Home Owners Association monthly payment]

    IF...

    RENT - PITI = a negative number (< 0)

    THEN....

    Property does not cash flow, which means the investor will have to SUPPLEMENT with their own money the difference to make the payment.

    People, its your money and it's your property, stop posting complaints and get to getting your asset out of his hands and get your money, which now you will more than likely have to sue them for.

    I also would like to ask, who is starting the CLASS ACTION LAW SUITE against these theifs?

    ""
    For all those who were not convinced this company is not only a scam but also a one way ticket to some serious jail time take a look at this link for the Cease & Desist Orders by California against both Naras Fund and Loomis Wealth:

    http://www.corp.ca.gov/ENF/pdf/2008/Naras_dr.pdf

    http://www.corp.ca.gov/ENF/pdf/2008/LoomisWealth_dr.pdf
    Here comes the hammer ! :judges:

    I am still curious if HUD is after them yet...

    I believe I read either on this site or one of the other scam sites how they attempt to make a property cash flow.

    In order to sell the client a house that more than likely house does/did not cash flow so they write a loan back to the investor to give them money to hold the property over the period of time prior to sell so that the property can cash flow.

    In order to write loans to a natural person you have to have a license (that's a law folks!), I do not see what mortgage license or banking license Loomis Wealth owns in order to complete such an action.

    Can someone detail the explanation of how they explained this in the seminar for me?

    Property investment is not rocket science, in fact it is fairly simple math.


    PITI = (Principle, Interest, Taxes & Insurance) [This is what you owe on your investment property each month and does not take into consideration if the property has a Home Owners Association monthly payment]

    IF...

    RENT - PITI = a negative number (< 0)

    THEN....

    Property does not cash flow, which means the investor will have to SUPPLEMENT with their own money the difference to make the payment.

    People, its your money and it's your property, stop posting complaints and get to getting your asset out of his hands and get your money, which now you will more than likely have to sue them for.

    I also would like to ask, who is starting the CLASS ACTION LAW SUITE against these theifs?

    :2gunsfiring_v1: ""

  4. #4
    Join Date
    Sep 2008
    Posts
    12

    Re: Loomis Wealth Solutions: How It Works

    Quote Originally Posted by savyinvestor View Post
    411er1-

    Submit your concerns to a senior member coordinator or Lee's personal assistant. Bad talking a company when they are experiencing hard times is not the best way to approach any situation. The economy is down and money is tight everywhere. Some people give up, which I'm sure the president of this company could have done long ago, but he is still around, running day to day trying everything to recover his members and keep them happy.
    Quote Originally Posted by savyinvestor View Post
    411er1-

    Submit your concerns to a senior member coordinator or Lee's personal assistant. Bad talking a company when they are experiencing hard times is not the best way to approach any situation. The economy is down and money is tight everywhere. Some people give up, which I'm sure the president of this company could have done long ago, but he is still around, running day to day trying everything to recover his members and keep them happy.
    Savyinvestor; your full of %#$#. Do you work for the loomis organization?

    He is not trying to find out how fix his company; he busy trying to figure out how to stay out of jail!

    If you do work for the company; how did you become so brain washed, if you don't work for the company, how do you call your self savy if you believe in this company?

    So now that I insulted you and you feel bad about your self, I would like to add, I do so on behalf of all the people's lives you idiots just messed up.

    Here is a copy of my other post on here, be sure and check out the links, hope your not expecting to get some paychecks from this clown:

    For all those who were not convinced this company is not only a scam but also a one way ticket to some serious jail time take a look at this link for the Cease & Desist Orders by California against both Naras Fund and Loomis Wealth:

    http://www.corp.ca.gov/ENF/pdf/2008/Naras_dr.pdf

    http://www.corp.ca.gov/ENF/pdf/2008/LoomisWealth_dr.pdf
    Here comes the hammer ! :judges:

    I am still curious if HUD is after them yet...

    I believe I read either on this site or one of the other scam sites how they attempt to make a property cash flow.

    In order to sell the client a house that more than likely house does/did not cash flow so they write a loan back to the investor to give them money to hold the property over the period of time prior to sell so that the property can cash flow.

    In order to write loans to a natural person you have to have a license (that's a law folks!), I do not see what mortgage license or banking license Loomis Wealth owns in order to complete such an action.

    Can someone detail the explanation of how they explained this in the seminar for me?

    Property investment is not rocket science, in fact it is fairly simple math.


    PITI = (Principle, Interest, Taxes & Insurance) [This is what you owe on your investment property each month and does not take into consideration if the property has a Home Owners Association monthly payment]

    IF...

    RENT - PITI = a negative number (< 0)

    THEN....

    Property does not cash flow, which means the investor will have to SUPPLEMENT with their own money the difference to make the payment.

    People, its your money and it's your property, stop posting complaints and get to getting your asset out of his hands and get your money, which now you will more than likely have to sue them for.

    I also would like to ask, who is starting the CLASS ACTION LAW SUITE against these theifs?

    For all those who were not convinced this company is not only a scam but also a one way ticket to some serious jail time take a look at this link for the Cease & Desist Orders by California against both Naras Fund and Loomis Wealth:

    http://www.corp.ca.gov/ENF/pdf/2008/Naras_dr.pdf

    http://www.corp.ca.gov/ENF/pdf/2008/LoomisWealth_dr.pdf
    Here comes the hammer ! :judges:



    I also would like to ask, who is starting the CLASS ACTION LAW SUITE against these theifs?

    :2gunsfiring_v1:

    Savy your sick for even coming here and trying to defend this company; what if it was your family who just got ripped off? How would you feel then?

  5. #5
    Join Date
    Sep 2008
    Posts
    12

    Re: Loomis Wealth Solutions: How It Works

    Quote Originally Posted by savyinvestor View Post
    411er1-

    Submit your concerns to a senior member coordinator or Lee's personal assistant. Bad talking a company when they are experiencing hard times is not the best way to approach any situation. The economy is down and money is tight everywhere. Some people give up, which I'm sure the president of this company could have done long ago, but he is still around, running day to day trying everything to recover his members and keep them happy.
    Savyinvestor, eh?

    The economy is tight and yet he is trying to do the right thing?

    What about this?


    http://www.corp.ca.gov/ENF/pdf/2008/Naras_dr.pdf

    http://www.corp.ca.gov/ENF/pdf/2008/LoomisWealth_dr.pdf

    Pretty sure the State of California has a problem with Loomis Wealth Solutions and their Naras Fund.

    What department do you think is coming after them next...? HUD, SEC, FBI?

    Hope your not waiting on a pay check from them...could be a long wait!!

    :errr:

  6. #6
    Join Date
    Aug 2008
    Posts
    6

    Re: Loomis Wealth Solutions: How It Works

    Savyinvestor, why dont you comment more specifically about the content of what is being posted?

    Im not talking "bad" about anything. I am talking about something "bad".

    Holding together a ponzi scheme, and trying to keep moral high enough to continue to function is absolutely "hard work". That guy could be really grinding hard to keep it together. Unfortunately for you, anyone associated with him, and his customers, hard work has nothing to do with legitimacy and legality. Separate issues. Lee Loomis could be worried about his customers, stressed out about his business, or any other emotional state, and it really means nothing in the end. "Keep his members happy"? That is rediculous. How about, keep his members financially secure. LOOMIS WEALTH isnt running an amuzement park. Coming up with BS to feed his clients to keep them "happy" is exactly what he is focused on. Buying time.

    If money is "tight" that likely means they spent all thier clients money. Recruiting more "members" to cover losses isn't too moral, or savy.

    Savyinvestor: Exacly what is Loomis doing now to recover? "Trying everything"? That doesnt sound like much of a focused strategy. Everything like what? Specifically. How much debt is the company in? Where is that money going to come from?

    Mortgage debt + NARAS FUND DEBT to clients + overhead. Where is the money being made?

  7. #7
    Join Date
    Aug 2008
    Location
    YUba City, CA
    Posts
    5

    Re: Loomis Wealth Solutions: How It Works

    Please visit Lee Loomis and Loomis Wealth Solutions thread.

  8. #8
    Join Date
    Aug 2008
    Posts
    31

    Re: Loomis Wealth Solutions: How It Works

    Lee confesses to fraud:

    http://www.news10.net/news/local/sto...=54984&catid=2

  9. #9
    Join Date
    Aug 2008
    Posts
    31

    Re: Loomis Wealth Solutions: How It Works

    Sorry the previous link is broken, here is the new link:

    http://www.news10.net/news/story.asp...=54984&catid=2

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