Cartel Asset Management is still crying the blues over why it can't seem to pay the real estate professionals it hires to perform Broker Price Opinions (BPOs).

Realty Times has been contacted by numerous real estate professionals who say that Cartel Asset Management owes them for BPOs they have done for the company and months have gone by without their being paid.

Walt Coats, principal of Cartel Asset Management, did not return Realty Times' call to request an interview.

In a previous interview with Mr. Coats in April, 2002, Realty Times learned from Coats that agents' complaints about slow pay are true.

"We've had a few banks go under on us," said Coats then. "Banks are always quick to order and not to pay. Some of my larger clients have gone in-house, so that has changed my financial position."

"We just got in trouble financially, and it has taken time to cure," he explained. "We are working to correct the problem and hope to have a solution soon. We apologize to the agents for the inconvenience we've caused them.

So what can agents expect who are owed money? "It is unfortunate but a lot of companies are in the same boat right now," said Coats. "We just ask the agents to have patience with us. Things are starting to look up again."

Now, almost a year later, things don't appear to be looking up for Cartel, as agents are complaining that the company is still months in arrears.

When Cartel orders a BPO, the company doesn't tell the agent that payment may be months or years away, may be paid only partially, or not at all. When agents complain, the company responds with effusive apologies, and a batch number in which their payments will be included. Typically the payment is many batches away.

Miami broker Delia Ramos wrote Realty Times in December, 2002:

"I have being doing BPOs for Cartel since May 2002," wrote Ramos, "and I was shocked by your article. Since I started I have received not one penny from them, and the letters they send me by e-mail after I complain, are the same ones you published. I received another one today, December 13, 2002. They are still paying batch no. 108 - unfortunately I am batch 139, 140, 141, and 142.

"I am shocked because they owe me thousands of dollars," continued Ramos. "Not all asset companies are like that I do work for another one, and have for few years, and they are excellent paying. Every 10 days I receive a check. Could you please tell me where I have to go? I was going to call an attorney or complain with a federal employment department. At this time the amount they owe me is close to $8,000.00 or more. I have been taken. Please publish something so others are not taken too."

In January, Ramos said she followed up with interviews with attorneys, who informed her that if she did business in Florida, that she could sue Cartel in Florida.

"I am organizing all orders in sequence to give to the attorney," says Ramos. "But how could we prevent other Realtors from falling into the same trap? I spoke with the Colorado Real Estate Commission (the home state of Cartel Asset Management), and they said there is nothing I could do. The owner, Walt Coats, has an active real estate license."

Here is the letter Ramos says she received from Cartel:

Dear Delia,

We are diligently working at ways to bring in the money to cover the losses we experienced so long ago, yet their effects are still being felt. The types of business ventures we are putting together take time, yet they are well worth waiting for as they will enable us to pay all that is due to you. We are currently working on batch 108, and you are still scheduled in batch. We wish this process was further along ourselves, but we do expect to make serious progress in the near future. We can't begin to thank you enough for the patience you have shown, it has assisted us with working towards a much more profitable future for everyone involved.

CARTEL ASSET MANAGEMENT, INC

Brandi Parks, Accounting Department

Washington Debbie Roberts, with Spencer-Kinney, Inc, wrote Realty Times, "Just thought you might be interested in hearing that we have been waiting for 19 months for payment from Cartel."

Texas broker Bob Burnitt says he also has not been paid by Cartel. "I can tell you from long experience there is one and only one way to get paid for sure," advises Burnitt, "and that is to get the money up front, and if they won't pay up front, don't do the damned thing."

"After years of chasing money, and often not catching it, I went to a 'strict' fee at the door policy for appraisals," says Burnitt. "I don't do BPO's. Life started being good. Oh, I didn't get as many assignments, but I got paid for all of the ones I did. No time on the phone 'chasing' money. I noticed a change in my overall sense of well being. My blood pressure went down. It absolutely had a therapeutic effect.

"Then, one day my phone rang and a client I have never worked for before said we need a 'drive by' appraisal at such and such address, and we need it right away. I told the lady that it would be fee at the door, and then, of course, she told me that I could not contact the occupant (common with foreclosures). I said "mail me a check, and by the time I get finished, the check will be here and then I will send the report. She says, "We need it right away."

"Well, I had kinda sorta forgotten what it feels like to get stuck," continues Burnitt. "So, I said, "Oh, alright, I'll do it immediately if you will pay me as soon as you get the invoice. The person on the phone, Michelle Sedillo, said "Oh, we pay right away." That was four months, and many phone calls ago. The company was Cartel Asset Management. They lied to me, and I have no recourse."

Published: January 30, 2003

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