There's definately trouble at R & B. My wife and I signed a contract to purchase a new home in the Highlands last spring. It's been 10 months and the house is not finished. The most disconcerting issue is

the fact that the roofers started in late October and have not returned to finish the job. We've had a half tiled roof for over three months now and its been covered in snow at least twice. I smell something fishy and it's not from the lake!

Colt 44 ~ Thank you for sharing your story.  This is very unfortunate and hopefully buyers will get refunded of their earnest money and deposits.  It would be interesting how everything would unfold.  One thing that bothers me is that they are not proactive about this.  There were no notice given to any of the buyers as to what is going to happen with their money.  Keep me posted.  Is there a forum somewhere online about this?

Does this surprise anyone?  Most private builder/developers (production), use a growth model called leverage.  The market correction that began almost 3 years ago (June, 2005) has caused many builders like RB to restructure their business model to meet the demanding service of DEBT! Much of the capital needed to continue growing their company was generated from institutions.  It's very simple, lever model on the dirt (too high), house revenues fall below th Bank or institution pay offs, requiring the seller (RB in this case) to fund escrow upon COE.  Home values continue to contract and the 800 pound national builders continue with severe downward pressure on pricing, thus forcing the Private Production Builders out of the market (literally).   Nationals are driven by unit growth year over year, not profit (like RB). National builders have once again led the market up (2002-2005) and they have led it down. If you want to check this I suggest you do some market study on the Southeast Quadrant of the Reno/Sparks MSA.

I think we all hope that their ownership team and executive management team can pull off a major save and breath life back into a company that has built over 6,000 homes in Norther Nevada.  As for consumers.......DO YOUR DUE DILIGENCE BEFORE MAKING A BUYING DECISION with a builder. 

SSpeed14 ~ Thank you for sharing your thoughts on this.  Totally agree with you on "Do your due diligence ...."  None of my clients purchased a home with small builders.  All of them took my advice  and decided to purchase their home with a national builder (if new subdivision) or resale home.

RnB moved to a new office in Reno recently which would explain the office closure... but they are getting their a$$ kicked in Rancho Murieta California for defective homes combined with some big lawsuits related to them not paying their huge debts.

If I had to guess... i would say they will shut it down before the end of the year but maybe not considering John Reynen and Christo Bardis have personal guarantees on their own properties as they try to restructure their debt.

Bad times for the greedy folks and the everyday peeps they prayed on.

HH528i ~ Thank you for the new information. 

Any recent updates with R&B? My wife and I are currently looking at Stagecoach in the Damonte Foothills. Office staff at both Remuda and Stagecoach said, "We have no idea when your house would be done...". That combined with Colt44's post is quite disconcerting.

Paul ~ Thank you for stopping by.  If I hear anything new, I'll post a blog about it.  You may want to seek  legal advice of a real estate attorney.  I am not sure if they are going to resume construction anytime soon.

I would be SUPER cautious buying a new house from Reynen and Bardis.  Do a google search on "reynen and bardis rancho murieta" and look at all the lawsuits related to defects and repairs that they can no longer afford to fix.

Caveat Emptor!! 

HH528i ~ I agree!

Okay. Thanks for the advice :)

Do not buy a house from them. We are under contract in Remuda (since Oct) and they have lots of our money. They cannot (will not) give us a date they will begin construction or let us know if they will ever finish our house. If we walk away, our money is lost. I repeat, DO NOT enter into contract. Sure, the houses are nice and the area is great, but the stress of not knowing if they are ever going to finish our house or give us our money back is terrible. They owe subcontractors tens of millions of dollars, and they are in default with their lenders. It is a vicious circle and the bottom line is: my house may never get built and I may never get my money back!!!!!

Their "bad" houses are everywhere in California and Nevada. They are in default on millions of dollars in loans and have promised mitigation for projects that has never been started. Rancho Murrieta problems can not be blamed on soil as some of the homes they built in Wallace California have the same problems. This community may have dodged a bullet with the financial troubles for this developer because he is trying to get approval for 124 more homes. However that does not help the homeowners that are now stuck with half finished or defective homes. There should be a special place in hell for developers that take $$ from homebuyers and walk away.

A friend told me and showed the invoices of over $100k that have been outstanding for months now.  It looks as if there will be no payment.  She has been a vendor, with a family who counted on the income.  Unfortunately for her, they are jerking her around, and haven't made any effort to even address the issue.  All the while there are transfers of land out of corporate name into individual names so that if the inevitable bankruptcy occurs, they will still have their golf course (Antelope Greens in Antelope, CA) and their 8400 sq. ft. mansion.  It is sad to see the corporate greed/dishonesty envelope otherwise good people.  Like another poster commented, hopefully the management staff can turn this around, but all indications point to the innocent becoming victims.

Does anyone know if R & B is currently involved in any construction or home completion activities at their Estates at Mount Rose project in southwest Reno?

Roger,

Their models in The Estates at Mount Rose are still MLS with disclosure of pending litigation.  Completion of homes may not be in the near future until they settle their pending litigation.  You may want to seek legal advice in terms of trying to get your money back.

Catherine

Pretty much all home builders have been forced to halt or greatly reduce construction because of the market crash; our R&B home is great, the problem is no houses are being sold, which means no; no income = cannot build houses. The rancho murrieta thing is a result of soil issues and a bad analysis by a geotechnical company - they've been forced to stop fixing homes out there because no one is buying houses - it all goes back to the current market situation. Hopefully this stuff will turn around.

Email From Jenni

Jenni,

You sent me an email inquiring about R&B.  I tried several times to reply but it kept getting bounced.  I think the email address was mistyped.  Please email me again, and I would love to answer your questions.

Catherine

We also have a deposit on a lot in Remuda, we may grab our check today...

this is all bad news.... 

Please keep us posted if R&B is able to refund your earnest money.  Jenni is also in the same predicament but there is a stipulation in the purchase agreement that it is non-refundable.

Thank you for stopping by.

As much as my wife and I would like to occupy our new R & B home we think it's more prudent to contact an attoney. Our slab has more cracks that a jigsaw puzzle and the story about their homes in Rancho Murrietta really makes me concerned. Are they going to walk away from our house as well? Who's going to cover any warranty issues if they go bankrupt? Also, our new neighbor's have gotten lien notices fron contractors even though their escrow has already closed!

Colt 44 ~ Yes, it would be wise to contact an attorney at this point.  Please keep us posted.  A lot of people are in the same predicament.  Thank you for stopping by.

I have a home in Stagecoach, recently completed and moved in.    I like the house very much, at least so far.   I am attempting to refinance, only to find that there are nine outstanding liens against my home.   It is difficult to refinance (or to sell a home) if there are liens against it, even if the liens were incurred because the builder failed to pay its bills.   These were all placed after I took title and I had no knowledge they existed.   R&B advises all vendors will be paid early April but beware new buyers.  

I have a home in Stagecoach, recently completed and moved in.    I like the house very much, at least so far.   I am attempting to refinance, only to find that there are nine outstanding liens against my home.   It is difficult to refinance (or to sell a home) if there are liens against it, even if the liens were incurred because the builder failed to pay its bills.   These were all placed after I took title and I had no knowledge they existed.   R&B advises all vendors will be paid early April but beware new buyers.  

JT,

Thank you for your comment.  What's going to happen with the builder's warranty if they go banckrupt?  When was your home completed? Are they going to release the liens?

Catherine

I believe the warranty will be "no more".   I was told when I phoned Sacto office that checks would be cut to clear up liens either to go out in early April, or cut in early April.   Would then take a couple of weeks for liens to be lifted.   I don't know much about the procedure and wish I didn't know what I do know. 

JT,

Please make sure that the removal of the liens are properly recorded at the recorder's office to prevent any future problems with title search.  It probably would not hurt to ask for a copy of lien removal confirmation.

Please keep us posted.  I wish the you the best and hope everything works out.

Catherine

Catherine-Interesting....reminds me of many of the homes that were build in the late 80's in Moreno Valley, CA.  I hope it works out for all the buyers, and that you can help direct people to the right resources.  It's terrible to not know what is happening, getting the run around, and possibly losing your money like the gentleman above.

Hi Kathy,

Would you share with us as to what was the outcome of the incident in Moreno Valley, CA?  It is a very unfortunate.  I hope R&B would do the right thing and refund people their money.

Catherine

Please check my other post regarding Cyan by Centex. 

I feel so bad for the people who have received lien notices.  I know that R&B is negotiating down their debt with the contractors.  In order for them to get paid, the contractors need to release all liens.  It will go down in April.  The hard part, is that they are robbing the contractors blind.  They are dangling payment over their heads.  The worst part is they are paying half of what they owe.  And the contractors have no way of getting any more.  It is a crying shame that the contractors can be treated this way.  Why can't R&B be honest and do the right thing by paying all of their debt.  Think about it, do you think that the actual costs of work performed were half of what they billed?  I think not.  That means that R&B owners are receiving services for FREE!!! 

 Some say, that is just business.  Or that is the way the market is going.  But I say, pay out of their own pockets, or give them something in return.  Not just a nibble of a payment, while they "reorganize" and go on to make a profit when the market turns.  Frustration can only be gained by dwelling on the unethical and dishonest behavior of those responsible.

 I apologize for the venting, but it is therapeutic. 

No Name,

R&B may be in the process of reorganizing but I am not too sure if they can fully recuperate.  They have to overcome their financial troubles but also regain the trust of people.  Their reputation is at stake.  A lot of people are affected.

Feel free to vent.  We all learn from each other. Thank you for stopping by.

Catherine

I agree.  My thoughts are that nobody will contract with them after this.  Unfortunately, what will probably happen is that they will sell the land that they control for a tidy profit, after getting releases of all claims against them.  Leaving the subcontractors the ones holding the loss. 

But........if they can sleep at night, so be it.  I know I wouldn't.  I have problems already sleeping due to the thought that someone can be so dishonest to not fulfill their obligations. 

I sure do enjoy the posts, though it is hard to hear that people are losing deposits and what not.  Along those lines, I don't think that I could lien someone's house for the work that I performed for R&B.  It wouldn't feel right holding the homeowner on the hook for R&B's ethics.

Nancy with Reynen and Bardis called me this aftenoon.  Here are some new information for you.

The following communities are now open. 

~Remuda
~Riada
~Highlands
~Galaxy
~Stagecoach

The home that I mentioned previously is not a model home.  It is a resale home.  Nancy said that all of their model homes in The Estates are already sold.

The other communities are is still under review if they are going to re-open.  Nancy said that she will keep us posted as soon as she confirms all of her information to share with us.  Thanks Nancy!

Just as an fyi

Their Sacramento communites shut down.

They have their Head Quarters for the company around the corner from my residence and just put it on the market for 6 million and according to the report in the Business Journal currently do not have adequate finances to meet their obligations.

 I closed on a Morgan model in Remuda in May of 2007. I have not had any problems but only come up and stay every few weeks as still live in Danville CA. I plan to move up in  the end of April. I am interested in any problems/complaints people have in the subdivision  or any other RB  development.

R&B are getting sued left and right.

Concrete slabs look like twisted train tracks.  Flooding homes because of poor pipes location.  Mold. soil not prepared poorly.  Lousy customer service.  They knew about all these contracting defects years ago and continued to make houses the same way and taking the buyers money without a second thought.  Best advice is get a lawyer and get in line.

I am one of the "lucky" homeowners. 

Interesting ~ You shared a very important piece of information. 

Colton Carmine ~ You may want to get your home inspected prior to one year home warranty expiration date.

Disgusted ~ Sorry to hear about your situation. Which community did you purchase?  Did you hire a real estate attorney?

Thank you all for sharing your story.  Feel free to post your comments so other people are aware.

Just an update to this interesting thread. We just paid a quick visit to our unfinished home and the other unfinished R & B homes in our neighborhood haven't been touched since late October/early November and yes my roof is STILL only half tiled. I searched our house and two others and there's no evidence of any Building Dept permits or inspections records anywhere.(Very suspicious!)

Also, in the Sacramento Bee this last weekend was an article that R & B had not paid the property taxes on their properties in Sacramento County. The article goes on to say that if the delinquent payment and second payment due in early April are not paid on time that Sacramento County is going to start foreclosure proceedings on all R & B owned parcels in the county. That's another $1.9M that they need to come up with.

And so the saga continues!

Colt 44, what is the response of the sales agent you worked with in buying, when you inquire about your house?  Have you sent a formal demand letter to executives at the corporate offices of the builder?  Have you sought to involve state and local agencies?  Have you reported your facts and this problem to the state assemblyman where your home is located, and asked for him/her to write a letter of inquiry to the developer?

Thought  I would share with you an email I received from Jim Watson. See below.

This company built houses in Rancho Murieta CA which is a small expensive gated community east of Sacramento. Quite a few of the houses have had major structural problems because of shifting foundations. Typical repair cost is $100,000. Resale prices have disintegrated because of these problems. A homeowners class action suit has been filed against R&B.

R&B is selling some of the remaining houses at firesale prices (causing more home value problems) and acting as an agent for both buyer and seller.

A recent Sacramento Bee article said that R&B is facing bankruptcy.

Jim Watson

Do you want to get your story feautred on TV?

Lemor Shlomof with KRNV Channel 4 would love to help you out.  Her cell phone is 342-8538. Her email is lshlomof@krnv.com.

Catherine -

I am in the home construction business just like Reymen and Bardis.  I have just returned home from a meeting this evening.  The bad news is that the proverbial "other shoe" has dropped... or rather, will drop.  The word is that RB will be filing BK before the end of this week.  This may be a long hard ride for all of RB's home buyers.

A comment says that: "The word is that RB will be filing BK before the end of this week. "

 What is "the word" relied upon as the source to justify the above post, please?  Isn't this just rumor, gossip, speculation, or prediction?  Has a company officer, member of management or a professional engaged to represent that company actually stated to the unnamed blog poster that this was going to happen?

Thank you. 

 I was told by an Rand B  worker  doing warranty work  that checks to the subs  in Remuda  are going out today and that  construction  will resume.

Colton ~ Thank you for sharing that information.  BTW, did you get an inspection for your warranty walk through?

I visited Estates at Mt. Rose a short time ago and was told by Nancy that only 7 homes were involved in the slab problems, and the solution was to pull up all the flooring, break up the 2 3/4in slabs and replace them with the 4in slab that should have been laid. You can't just "pull up slab" from the inner walls and replace it. And it should have been more than 4in slab on grade especially if it wasn't a "post tension" slab. I spoke to a Mt. Rose homeowner who said it is actually 21 homes involved and that no one at RB has contacted them to tell them if and when they will do the repairs. Homeowners are walking away from their homes because they are non-insurable, which means non-saleable. One homeowner actually became very ill over the stress and almost ended up in divorce. Their homes are beautiful, but because of this "blight" that development and others will now be tainted for years to come. I understand there is a class action suit being brought by Mt. Rose owners, but thier feeling is RB will delay it for years so as not to have to fix the problem. My prayers are with those poor owners.

I am the one that posted the information above.  My friend HAS received her first check of settlement from R&B.  There were a few nevada properties that were included in that settlement.  It "appears" that perhaps they may try to continue operations, based on the assumption that they wouldn't send out settlement checks on debt if they were going to file BK. 

 Here is what I think is taking place.  Some speculation, some fact.  R&B is squeezing its vendors, perhaps at the influence of the financing banks, to erase half of their debts.  Meaning that these poor vendors who have provided services to R&B will only get paid half.  Most likely the case is that that 50% won't even cover the costs of the actual cost of services paid from the vendors pockets.  My experience has been that in most construction industries there may be about 10-20% profit on each job.  Now if it were me and I paid out $0.80 cents to get back $0.50, I would be livid.  Now whether or not that is R&B's idea, or the financiers, I don't know.  Either way, I believe the goal is to get back building homes. What gets me is that they will continue to build homes, make some profit, and the original vendors have no recourse to collect payments in the future.  What a shame.

Interesting note, the owners, John Reynen & Christo Bardis have personal guarantees on the loans.  This could be one reason why they are restructuring the money.  However, on January 28th of this year they moved their own personal residences, and most of their assets into irrevocable trusts.  Most likely to try and shield their personal assets.  So as to guess, perhaps some time from now after they "hide" all of their assets, reaffirm with the banks WITHOUT personal guarantees, they will then claim BK.  Bottom line, is that R&B over the years has used "funny money" to buy, sell, get out of sticky situations that their numerous companies have been faced with.  Think Winncrest homes, Corinthian, Cambridge, etc.  Put in a search for Bruce Palmbaum in google and read about how he won an auction for land from Winncrest Homes, a.k.a. R&B for $2000.  This was a $6 million dollar property that used to belong to a Bardis family member (Winncrest) the bank foreclosed, and then a company co-owned by Rachel Bardis buys it for NOTHING!  Laughing out loud on this one.  Check it out here:  www.freitaslaw.com/stuck-in-traffic.html 

All in all though, their name will mean nothing and if you research the name "Reynen & Bardis" in google, you will find that any knowledgeable homebuyer would in no way want to deal with them again.  I truly believe in Karma, and I know sometime down the line this will come back to bite them some way or another.   Thank you for the forum.

Reynen & Bardis has been in the process of restructuring their debt for seven months. Most of their lenders are on board with the "plan". The banks are the ones who make the decision regarding how much is being paid to the sub-contractors on the past due invoices. Most banks are paying at 65% while one is only paying at 52%. As new loan agreements are signed with the banks checks are being released to the subs. Once constuction starts again the current invoices will be paid at 100%.

None of the divisions have "closed down". The office in Mather is on the market, but R&B will either lease the bottom half or move to the space Corinthian had next door. The primary goal is to get the subs paid. After the past due bills are taken care of, each bank will make the decision to continue the project or not. The construction goal is to close on three homes per month in each of the projects.

Cristo Bardis has been obtaining mortgages on his homes to help fund the business and has very little equity in them. John Reynen has also contributed funds to the business and has all but two of his homes on the market. The company has also sold off some of the land it was holding. The proceeds from the sale of assets will go into a fund that the banks will be paid from. Perhaps this is the fund that was mentioned previously.

There is one bank that has tried to attach John's assets. He filed Chapter 11 today to stop that bank from recovering their debt ahead of the rest of the banks; something he told the bankers he would do if any one bank took that action. Here is a link to the story: http://www.sacbee.com/142/story/884817.html

I do know that checks are being paid quite often to homebuyers who have felt the need to cancel and payments are being made to lift liens. In fact, no checks are given to subs until they have filed the appropriate paperwork to remove the lien.

The R&B work force has been reduced to half of what it was last year and the employees have all taken a 20% cut in pay. Some of the upper management have taken larger cuts than that.

I don't believe that Reynen & Bardis will close its doors any time soon. John, Cristo and the rest of the employees seem determined to keep the business going through these very lean times.

Anna Minus ~ Thanks for the update.  Are you an employee of R&B?  If so, can buyers cancel escrow and be fully refunded of their earnest money and/or deposit?

I do know that some cancellation checks have been sent to homebuyers but I am not privy to the details.

Anna Minus ~ Thank you for the information.  Please keep us all posted.

You can cancel your contract.  Minus what upgrades have been installed and minus your deposit.  Those are considered "damages" incurred if you cancel, as they could've sold your house to someone else.  Trust me, I tried.....

We live on Lacerta Drive in the Starcrest subdivision in Wingfield East.  Our irrigation on the common areas (mow strips) have yet to be turned on so I caled Associated management this afternoon.  Paige, assistant to Kim, said that the last meeting AMI had with RB was the previous Monday, and they were going to try and get the landscapers on our street by next week.  AMI can't turn on the irrigation because the Horizon Place Village has yet to be turned over from RB to AMI.  I asked if they don't get the irrigation and manitenance going if the homeowners were going to be discounted some percentage on the association fees due to breach of contract.  Paige, very courteously, said she wishes that could happen, but because the village has not been turned over to AMI, they don't have the power to implement any type of program such as that.  I was told if the irrigation doesn't get turned on, to call back next week (Week of MAy 5th), to call her back.  So for now, I guess I will stand out there for twenty minutes everyday with a hose so that we don't lose the trees/lawn in front of our home.

The irrigation is working on Lacerta and it appears the house on Wisodm drive off of Lacerta has had the lein notices removed from the windows...a possible restart for RB? 

Lacerta Drive ~ Thank you for the updates.

Anna Minus seems to be an employee of R&B.  How sad it would be to stick up for these people.  Hard, back breaking work went into subcontracting services to them.  And to see money come out of potential retirement, potential college funds, potential rainy day funds, to render services to R&B; only to see that money never come back?  The worst part is, R&B is restructuring so that they will eventually make a profit.  Will there be any retribution?  NO!  I mean give me a break.  You can't sit there and tell me that you believe that this is honest.  I personally believe it would be better if they just went under and stayed under.  I can't imagine the thoughts that will go through the heads of the people that were ripped off after the dust settles and the money starts rolling in.  Please don't insult these subcontractors who poured their efforts into "giving" their money away, on the words that came out of R&B's mouths that they would have got paid.  That is both callous, and rude.  I am sure that if you were in the same situation, you would feel the same way.  Just because the employees took pay cuts does make it right, considering that they didn't already write a check to this corporation.

On another note, I hope that the home buyers who are inconvenienced by R&B, will eventually be taken care of. 

Do you want to get your voice  heard?

Lemor Shlomof with KRNV Channel 4 would love to help you out.  Her cell phone is 342-8538. Her email is lshlomof@krnv.com.

We had our inspection and their response was that they won't do anything.  This is the response they have given other homeowners.  It was expected and unfortunately, it is a sad statement that our expectations of them are so very low.

After seeing how they have handled the same issues in different communities, we are appalled that they are allowed to continue to be in business.   

One of our friends has mold all over their house.  Their foundation is sinking, their property is a royal mess.  Their response? "it is normal settling of the house".  (I guess houses can continue to "settle" for years and years on end while they sink and slope)

In response to : On another note, I hope that the home buyers who are inconvenienced by R&B, will eventually be taken care of.   

I too hope that there is a resolution for those who only put a deposit on a house, but for those of us who own our homes built by R&B, I think we have been more than inconvenienced, putting it blunty, we have been defrauded and Hope is not going to make us whole, but litigation just might. 

How very sad that honesty and integrity are such rare commodities in our world now a days.  I know that I could never treat people like this, and would not be able to sleep at night had I hurt people in such a way.  These people are nothing but the embodiment of greed and have no moral fiber.  That is my opinion based on the facts that we have had to endure. 

I can't imagine being an employee of these people.  To have to lie and cover up for them on a daily basis and still make those sales.  How very repulsive! 

Good luck to us all.

Disgusted ~ Would you please share with the group which community your house is located?

P.S. I hope you have hired a real estate attorney.  Lemor Shlomof with KRNV Channel 4 would love to hear from you.  Other people besides from this thread need to know about your story.

Thank you for stopping by.

Until further notice from our attorney, I can't get into specifics.  Contacting the media is not appropriate at this time, but it is certainly not out of the question.  To answer your question; our law firm was highly recommended and thus far, we have every confidence in them based on how professional and knowledgeable they are.

As soon as I know if and how to proceed, I will come back with as much detail as you can handle.  I have file folders filled with the disaster this company is and what they have done to us.  I know there are people from California posting here and their recounts have been very helpful.  We are in Northern Nevada, it that helps any. 

Disgusted -- could you tell us which high school our kids would be attending if we were your neighbors?  What are your neighbors saying about the high school?  Thanks.

On 1/25/2008 we entered into a contract with R&B to purchase one of their model homes in the Galaxy Project in Wingfield East in Sparks, NV.  We indicated that our down payment would be 70%.  My credit score came in at 807 and 824!  They took their time to get the staged furniture out of the property in late April.  We were told that R&B wanted a 45 day closing, and we told them we could do it sooner.  Taking their sweet time, R&B has dragged their feet in changing the electrical from a model home to a normal home, and here it is now May 22, 2008, and in order to close, they still have to take up the model home walkway and replace it with grass, and put in the fence.  They have supposedly completed the home inspection worked which we commissioned.  Yet, today, I was told that the minor work of removing the sidewalk and put in the fence will take up to two weeks.  This was supposed to have been done in April.

They have even changed the locks from construction locks, but still can't complete the very final work.  The entire model has been detailed.  The fencing and landscaping work could be accomplished in two or three days at the most.  I even offered to front the money to the landscaping and fencing people, with a credit against the purchase price.  That has fallen on deaf ears at R&B.  As the senior partner in a law firm for many years, I would have fired these incompetent personnel. 

Why do we persist!  My wife this year has been very ill, and she loves the house.  The mere fact of our moving just one mile away into her beloved house has been like a carrot on a stick.  Until right now she has improved dramatically, but R&B through its total incompetence has taken a toll on her.  Here is ready cash flow - but these imbeciles despite all of their financial difficulties are dragging their feet.  I have called the VP for construction in our area, and have not received one response to my three calls.  He tells the poor but very understanding sales representative that he did not receive them.  She is a very sweet lady who is being laid out to face all of the anger for R&B's total nonresponsiveness.

If R&B is a viable company, who ever is in charge should be aware that the lower levels are totally blowing it.  This sales representative has sold all of the model homes at the Galaxy project plus other almost completed homes, and can not get the time of day from corporate.  We are talking about millions of dollars, and yet R&B is nonresponsive.  You figure!

I have heard from current R/B employees that the subcontractors are waiting for payment and therefore will not do any work.  They are currently in the process of settling with their subcontractors. That is probablly why the process has been dragged out. Also might have something to do with the fact that they dont want any homes closing prior to re-vamping their agreements with all the banks they owe.  Northscape is who Reynen and Bardis use to convert the models.  Beware of Northscape.  The owner of Northscape if the most unreasonable person you will ever meet. Northscape puts liens on property even when their paid, always saying its an error by their office.  A co-worker of mine purchased a model home and when they installed the driveway they simply cut all sprinkler and drip lines and did not re route.  He lost much of his landscaping by the time he realized that the water was not cycling properly and Northscape would do nothing..  On top of that he placed liens on the property for the conversion work of the model landscaping because Reynen/Bardis did not pay.  Very unfair to the homeowner who just purchased the home.  I cant understand why Reynen and Bardis insist on using Northscape.  They do a lousy job .  Very much a good ol' boy network.  Another person I know bought a model home in Double Diamond and when the rear fencing was installed they put the fence over the sprinkler system and broke several lines.  Reynen and Bardis did nothing.  No Warranty they said on fencing and irrigation and a $800 dollar water bill by the time the break was detected and fixed!!!!  Beware when you buy a model home especially since there is currently no customer service department to speak of.  They take your walk thru list but then tell you they cant get it fixed because none of their subcontractors will work for them during this "transition".  Do you thing they are going to extend everyones 1 year warranty??  They are simply using up the 1 year window and then your screwed.  This is definitley a buyer beware builder.    If you are thinking of buying one of there homes,(yes they have great floorplans) just plan to be on your own,  There is a street of homes in the Mt Rose Estates that thier slabs were not engineered properly and their homes are virtually worthless.  Large diameter cracks up the walls.  Sorry for all the doom and gloom but if you are buying a model make your sprinkler system is re-configured.  Also get proper documentation so that no liens can be placed for on your new home.  You might want to pay and have a structural inspection done prior to close and hand that report over to Reynen and Bardis on your walk-thru since the one year warranty at this time is worthless.

Great point about hiring an engineer to do your walk through and inspection PRIOR to closing.  Definitely ask the title company to run another title search prior to closing to double check if there are any last minute liens PRIOR to closing.

Thank you so much for sharing all your stories.

In reading through the blog, I can certainly understand some of the frustrations that some of the homebuyers are feeling. I feel compelled, however, to add some comments as to what has, and is currently going on for a Builder who has a long term commitment to building in Northern Nevada.

My first comment would be that, although they are certainly suffering through some major issues, RB has built and closed thousands of homes in the area. They maintained a good reputation for building quality homes and handling warranty issues. Let's keep in mind that the 'subs' handle each of their areas of expertise, while the superintendents for RB monitor their work. Throughout the years, RB has made changes regarding subcontractors who have provided substandard service in order to provide those quality homes.

Next, I'd like to address the issue of what has been oing on recently. I can only guess that many of you are aware of the current state of the Real Estate market nartionwide and, more specifically, in Northern Nevada. I will also assume that you have an understanding of the mortgage/real estate financing world as well. That said, you should also understand that, not unlike some buyers who have run into issues with values and financing, the same can be said for Builder/Developers. You will see, if you haven't already heard, that many of the Builders who are not 'National', are quietly going through the same trouble RB has. RB was just the first. What has happened is that the Lenders who financed land for the developers, has halted the 'draws' and has re-valued (not sure if that is proper english) the land they are building on. While some, including RB will struggle to build using cash, that is a short term fix. As the market has softened, revenue has as well and the cash becomes scarce. At that point, some Builder/Developers will fold and walk away. RB chose to shut down operations and preserve cash while negotiating with the lenders (not unlike some homeowners who are trying to work with their mortgage lenders) and trying to reopen in the spring. While some of those negotiations are complete, other continue. The communities that are open are starting to sell and that is a good sing for the entire RE market. As for the subcontractors...some will choose to continue to work with RB and some will not. Most have signed on to continue.

For those in contract, the above really should have been explained to you. While you are dealing with RB, RB is dealing with thier Lenders. As I mentioned, there are still some negotiations going on.

For those looking to buy and for the Realtors that may represent them, I am confident that RB will be building homes far into the future in Northern Nevada, long after the 'Nationals' have moved on. Is anyone aware that one of those huge 'Nationals', who has been for a long time, owns no land in Northern Nevada. That's a pretty good indication that they are positioning themselves to be able to pull out at any time!

For those who have purchased a home from RB, continue to work with their warranty dept to resolve the issues you are dealing with. Things should move a little quicker as the subcontractors return. 

I'd like to see those in the RE world and those potential buyers, give a company that has always been committed to our area, a chance to work through the problems that the market has exacerbated, and come back and continue to offer quality homes.   

Wingman, do you work for R&B!?

What about all the construction defects (susbstandard concrete, plumbing issues, mold, etc?) R&B refuses to acknowledge all the issues of prior customers.  Once they took their money, the customer does not exist. 

This is a company that is not allowed to take out a building permit in many parts of California.  There is no quality of construction in these homes, just a very pleasant floor plan.  We all know that some people are beautiful on the outside and ugly to the core on the inside.  This is the same problem with these houses.

What I find interesting is that anyone in the building department is continuing to allo