586 replies to this topic

[spanky123]

In my experience there is a form to be completed where you tick the boxes for the qualification you are basing your "accredited" status upon and sign it. I don't think there is any obligation on the business to verify that you told the truth, but I could be wrong. I suspect if you KNEW it was untrue you would have a problem, but I don't think you have to perform any diligence.

 

There are other ways to qualify too, under "friend and family" status. You could pick up a more naive investor through that route I think.

 

No requirement for anyone to validate but the expectation is that the information provided is true and knowingly submitting false info would be an offense.

Edited by spanky123, 17 December 2014 - 06:38 PM.

[spanky123]

Most of the OBBH bonds bore interest at 7% and 8%. At that time you'd be hard pressed to buy an "investment grade" bond paying more than 1.5% or 2% so anyone not realizing the OBBH bonds were extremely high risk (essentially speculative) had a fool for an advisor.

I recall seeing one of the OBBH construction loans at 17% or some similarly high number. That is really stunning--both that Walker would think he could pay that kind of interest and the lender believing he could pay it.

The interest rates reflected the extremely high risk of the hotel. I don't see how the OBBH failure could be assumed fraudulent--the parties all knew what they were getting into.

 

Some construction loans are considered "loans to own". There is no expectation that the loans can be repaid but that is ok as the intent is to own the property afterwards. Not saying that is the case here.

[peanutflower]

 

 

 

Can anyone tell me anything more about the Brian Ruud connection? It looks like the Walkers are related to him according to this webpage: http://www.mhfh.com/ruud-val/

 

And can anyone tell me any more about the falling out with the Andersons?

 

Also would be interesting to hear from some employees of the hotel, As well as anyone with direct dealings with the Walkers, or anyone who is owed money.

 

Also just thought it was interesting all of Kevins part by part YouTube videos detailing the building of the hotel have been removed.

 

 

He's Kevin's wife's uncle.  

[todd]

This letter was in the Oak Bay News today "Problems apparent"

Attached Images

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Edited by todd, 17 December 2014 - 11:41 PM.

[dasmo]

                     Sh*t Happens

[todd]

The good old days Date: 1949 Date: 1979 Date: 1979

Edited by todd, 18 December 2014 - 01:00 AM.

[Koru]

Most of the OBBH bonds bore interest at 7% and 8%. At that time you'd be hard pressed to buy an "investment grade" bond paying more than 1.5% or 2% so anyone not realizing the OBBH bonds were extremely high risk (essentially speculative) had a fool for an advisor.

I recall seeing one of the OBBH construction loans at 17% or some similarly high number. That is really stunning--both that Walker would think he could pay that kind of interest and the lender believing he could pay it.

The interest rates reflected the extremely high risk of the hotel. I don't see how the OBBH failure could be assumed fraudulent--the parties all knew what they were getting into.

 

When you are paying a construction loan at 17% I can't imagine it was on a the whole construction loan, if you are in this day and age, its a loan to own. The lender knows he is likely taking over the property and the loan recipient is grasping at straws.

 

For example there is a hotel conversion in Vancouver that was recently financed after years of sitting dormant, the loan has 3 tiers starting from 6% to 22% on the component that is 3rd position.

 

When I get our construction financing and choose to leverage up from the standard bank loan amounts for Mezz Financing or a 2nd Mortgage we don't pay about 6%-9% (and this would only be on a small portion of the total loan, i.e. If my project is 50 Million, depending on my project, asset class etc I'm going to aim for 75% of my cost from the bank, which will charge me prime + .5 to 1.5. If I want a loan higher than 75% I'll get Mezz/2nd and maybe it'll be 5 million, which would get the 6% to 9% interest. Its pretty manageable if you know what you are doing to pay that higher interest loan off when its only on a small component.

[sebberry]

Folks, let's please focus on the Hotel and its operations without bringing family discussions into this.

 

Thanks. 

[todd]

Disappointed to see some of the very interesting previous posts by peanutflower were censored. I will not repeat them out of respect for the moderators of vibrantvictoria. But maybe VicHockeyFan is right this type of information is more appropriate for reddit maybe. In this case the family and the hotel are one of the same you can't mess with that many people's money and not expect people to look into your character. 

[sebberry]

This isn't a gossip forum for talking about who ran away with who or for airing dirty laundry.  Thanks for your understanding.

[Bingo]

This isn't a gossip forum for talking about who ran away with who or for airing dirty laundry.  Thanks for your understanding.

 

I agree.

[peanutflower]

I agree.

Well, you asked.  And it isn't gossip or rumour.  It's the truth.  Some of it might be at the heart of why the Walkers chose to do what they did viz building such a big hotel and a financial undertaking.  Nevertheless, I appreciate what you said.  

[Bingo]

Well, you asked.  And it isn't gossip or rumour.  It's the truth.  Some of it might be at the heart of why the Walkers chose to do what they did viz building such a big hotel and a financial undertaking.  Nevertheless, I appreciate what you said.  

 

I don't think you were replying to me, but I do agree that this is not the place for dirty laundry.

[todd]

peanutflower can you give us some information on how you know this all?

Well, you asked.  And it isn't gossip or rumour.  It's the truth.  Some of it might be at the heart of why the Walkers chose to do what they did viz building such a big hotel and a financial undertaking.  Nevertheless, I appreciate what you said.

[johnk]

I don't know the Walkers, never met them, don't know anything about their business.
But it seems to me there is a world of difference between operating a family business 49-room boutique hotel the owner was intimately involved with for most of his life and undertaking a luxury-level $50 million+ project.
Quite different skill sets required.

[todd]

[todd]

The OBBH Rolls Royce home safe and sound tonight.

[todd]

Just to be unbiased, there are lots of good statements out there about Oak Bay Beach Hotel and the Walkers on the: Times Colonist webpage comment sections, Oak Bay Beach Hotel official announcement Facebook post about the bankruptcy(which has now been removed), 423 Very good or Excellent Tripadvisor reviews (over the last 2 years and in recent days) and more positive statements elsewhere.

 

 

https://www.youtube.com/watch?v=AZiNNl6TjnM

Edited by todd, 18 December 2014 - 09:13 PM.

[MacBooger]

People are hoping for "Walker stories", so here is my story about Shawna Walker. 

 

About 13 years ago I met Shawna at a ladies group.   She didn't know me.   To say that I was a "basket case" back then is an understatement!   I was cracking up. My father was dying a slow death from a degenerative disease.    My passive aggressive mother (now deceased) was having a lot of fun driving me crazy.  My marriage had just broken down because I had discovered that my then husband was living a double life.  (Don't ask).   I was building a house.  I was extremely worried about my children, who were young at the time.  They were cracking up also.   I was so stressed out; worried;  angry;  and upset I could hardly function.   Started hitting the bottle to try to sleep.   VERY bad idea.  At the group I was crying, ranting, angry, and "beside myself".   I bet I was cursing too.    It is an embarrassing memory.   One lady snickered.  Others were shocked I think (gentile gathering), and some were very supportive, including Shawna.   She did not judge me as many did at that nightmare time in my life.   People were understandably backing away, but I couldn't get it together to pretend I was fine.   I actually ended up in the hospital for a brief period.    Kids and I are all better now ..... thank you for asking.

 

When I got home I thought "They won't want anything more to do with me" then the 'phone rang.   It was Shawna.   She asked me "What are you afraid of?".   We talked for a long time, and she was very kind; understanding; and helpful.   We are not close although I know a couple of people that are close to her and keep up with her life that way.   Anyone who looks at Shawna and thinks she has had a "free pass" in life is mistaken.  As well as being dignified, competent, hard working and beautiful, she is (((MUCH))) loved and I know she is a very loyal wife (not a crime), and a wonderful mother.    She is not a fraudster, con artist, heartless, grifter, greedy or all the other names being bandied about under the blanket term "The Walkers". 

 

I understand that people are hurting and feel betrayed/abused and I feel for them ....  but I just want to speak up for a nice lady that reached out to me when my world was falling apart. I will never forget her kindness to me. 

 

Not going to enter into any discussions.   I have said my piece.  Enjoy your day.

 

MacBooger 

[aastra]

 

 

423 Very good or Excellent Tripadvisor reviews...

 

The place has been getting glowing reviews from day one, no doubt about that.