Desert Sage files for Chapter 7

Full story: Las Cruces Sun-News

Desert Sage Building and Development Inc., a custom home builder in Las Cruces since 1996, has filed for Chapter 7 bankruptcy protection.
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Master Debater

Las Cruces, NM

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#1
Jul 30, 2009
 
I feel bad for all the people they owe money to!
BottleRocket

Las Cruces, NM

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#2
Jul 30, 2009
 
A lot of those creditors are small businesses, not big companies.

I hope they get back some of what is owed to them.
Robert

Las Cruces, NM

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#3
Jul 30, 2009
 
At least Kim Martin had her house finished. As far as Gormley's 5000sq/ft for 110,000 - Wow, 22.00 per sq/ft -that would have been a deal. There are larger outstanding amounts that what the Sun News listed. GL Green to the rescue for Hummer; that was no surprise given the fact they have holdings together. To the builders that have served the community for more than a few decades, Thank You. Easy come, Easy go.

Note: Don't pre-pay something so large. Subs can hang you out to dry.
Sub Contractor

Farmington, NM

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#4
Jul 30, 2009
 

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Robert wrote:
At least Kim Martin had her house finished. As far as Gormley's 5000sq/ft for 110,000 - Wow, 22.00 per sq/ft -that would have been a deal. There are larger outstanding amounts that what the Sun News listed. GL Green to the rescue for Hummer; that was no surprise given the fact they have holdings together. To the builders that have served the community for more than a few decades, Thank You. Easy come, Easy go.
Note: Don't pre-pay something so large. Subs can hang you out to dry.
As a sub-contractor who was working on projects for Desert Sage, let me make a couple of comments. First, what Enchantment Ventures, LLC did for me and other subs is unheard of in these parts - they "paid us" for what Desert Sage should have paid us for. Enchantment Ventures paid Desert Sage for our work but Desert Sage pocketed the money. Instead of saying to me and other subs "tough" go fight with Desert Sage, they paid us in whole. That was very surprising in a good way. It showed thier true positive charachter and integrity. As far as GL Green bailing out Enchantment Ventures, "false", Enchantment Ventures hired them to continue the project and we continue to get paid by Enchantment Ventures.

For the Gordon's it is my hope that the DA does the right thing and pursues and indictment. They committted fraud against Enchantment Ventures, Gormley's Martin's and so many others. An example needs to be set to stop General Contractors from screwing the small sub contractors.
About Time

Albuquerque, NM

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#5
Jul 30, 2009
 
Thank you for reporting! It also should be mentioned about their two invoice system. The subs gave them the real invoice and then Desert Sage requested another invoice from their subs that was marked up at least 10%! They showed the "dummy" invoice to the clients.
This has been happening for at least four years...
Really sad Dave and Michelle, really sad.
Red Apple

Las Cruces, NM

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#6
Jul 30, 2009
 

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A 5,000 square foot ADDITION to a house? Can someone knock me out, please? It's that kind of opulent greed that drives me to get dental work done south of the border. I'd rather risk taking a bullet than knowing I'm paying hyper-inflated prices for a service that allows someone to build a mansion-size ADDITION onto their mansion.

Suckrz.
Joe Smith

United States

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#7
Jul 30, 2009
 

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i feel bad for everyone involved. this economy is the worst ever and it has been particularly tough on NM homebuilders and homeowners!!

but i have to say that i think the demands for criminal prosecution by Gormley and this anonymous contractor are ridiculous. i thought we got rid of debtor's prisons.

if we are going to start putting people in jail for bankruptcy and/or foreclosure...then we are going to need tens of millions of new cells.

also, it is tough to feel sorry for Gormley when she is building a 5,000 sq ft extension to her house in the middle of a depression...must be tough.
Psyche Daddy

Alamogordo, NM

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#8
Jul 30, 2009
 

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I would guess a typo occured and should have been 500 instead of 5,000, just a guess.

But I would think that there have been many bankruptcies filed by many builders but Desert Sage being a larger one, made the headlines. Some builders get caught in a situation where they cannot shut down during a recession because of the business is base on borrowing to keep things going.
Desert Sage would have made it, if the recession or slow down hadn't of been so long. If the slow down continues, you will see more builders go under.
When talking to a backruptcy attorney last year, he said there had been many builders file bankruptcy in this district. Probably more than you would believe. Most do not make headline news.
Among You Soon

United States

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#9
Jul 30, 2009
 
BottleRocket wrote:
A lot of those creditors are small businesses, not big companies.
I hope they get back some of what is owed to them.
A deal? This has to be the deal of the century and this person should easily expect to pay the subs.$50/ft would be a fantastic deal! They got a tremendous deal and should pay-up and shut-up!!
Among You Soon

United States

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#10
Jul 30, 2009
 
Joe Smith wrote:
i feel bad for everyone involved. this economy is the worst ever and it has been particularly tough on NM homebuilders and homeowners!!
but i have to say that i think the demands for criminal prosecution by Gormley and this anonymous contractor are ridiculous. i thought we got rid of debtor's prisons.
if we are going to start putting people in jail for bankruptcy and/or foreclosure...then we are going to need tens of millions of new cells.
also, it is tough to feel sorry for Gormley when she is building a 5,000 sq ft extension to her house in the middle of a depression...must be tough.
Ebb and flow Joe, simply ebb and flow!!
Get Real

San Francisco, CA

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#11
Jul 30, 2009
 

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Red Apple wrote:
A 5,000 square foot ADDITION to a house? Can someone knock me out, please? It's that kind of opulent greed that drives me to get dental work done south of the border. I'd rather risk taking a bullet than knowing I'm paying hyper-inflated prices for a service that allows someone to build a mansion-size ADDITION onto their mansion.
Suckrz.
Hey Red Apple, you are kind of missing the point about this article, it has nothing to do with a dentist and their home addtion. Seriously, get a life, or a new hobby!!
Sub Contractor

Las Cruces, NM

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#12
Jul 30, 2009
 

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Joe Smith, you must not know the law here in NM. For a contractor to bill clients for work done by sub contractors and then not to pay the subs is a Class 4 Felony in NM statute. White collar thievery at its best. Oh, so everyone does it huh? That is no reason to go after frauds like the Gordons? Bottom line - they "stole money" from their clients and the subs who were to be paid. Press Charges DA!!
Joe Smith wrote:
i feel bad for everyone involved. this economy is the worst ever and it has been particularly tough on NM homebuilders and homeowners!!
but i have to say that i think the demands for criminal prosecution by Gormley and this anonymous contractor are ridiculous. i thought we got rid of debtor's prisons.
if we are going to start putting people in jail for bankruptcy and/or foreclosure...then we are going to need tens of millions of new cells.
also, it is tough to feel sorry for Gormley when she is building a 5,000 sq ft extension to her house in the middle of a depression...must be tough.
Tired of Stupids

Albuquerque, NM

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#13
Jul 30, 2009
 
I feel bad for the Gordons on this. BUt they were one of those builders with houses in the Showcase of Ridiculousness with some halfassed design and absurd prices which made them hard to sell to begin with, and that is a huge risk. The work was solid, good quality, but that's not enough for many buyers. Everybody wanted to cash in on the boom. And it worked, for a while...
Tired of Stupids

Albuquerque, NM

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#14
Jul 30, 2009
 

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About Time wrote:
Thank you for reporting! It also should be mentioned about their two invoice system. The subs gave them the real invoice and then Desert Sage requested another invoice from their subs that was marked up at least 10%! They showed the "dummy" invoice to the clients.
This has been happening for at least four years...
Really sad Dave and Michelle, really sad.
That is how it works. And 10% is not a big markup. It is often 15%, Why do you think govt projects cost so much? Every tier up the chain adds another 10-15% on top of the last one.
Reader

Las Cruces, NM

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#15
Jul 30, 2009
 

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Red Apple wrote:
A 5,000 square foot ADDITION to a house? Can someone knock me out, please? It's that kind of opulent greed that drives me to get dental work done south of the border. I'd rather risk taking a bullet than knowing I'm paying hyper-inflated prices for a service that allows someone to build a mansion-size ADDITION onto their mansion.
Suckrz.
So... You're one of those people that thinks someone should control how people spend their money. Since you can't afford a 5000 square foot addition to YOUR house, nobody should be able to have one? I suppose you want to control how much people earn, what kind of car they can buy and everything else in their lives, also? You sound kind of "communist" or "socialist" to me.

Did you ever stop to think about the many people in Las Cruces employed because other people spend money?
BrokerLandscaper Builder

Peoria, AZ

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#16
Jul 30, 2009
 

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All I can say is I hope the Gordons get what they deserve! Secondly I am so glad I never liked them and became one of their subs.. He still owes me for materials I purchased years ago. I gave up on any hope of being reimbursed. He was a crook when he rolled into town and he is a crook when he left town.
They rode the big wave on everyone else's coat tails.. I am sure they are sunning themselves, drinking margaritas and laughing their butts off with a pile of cash!!
I hope the DA does whatever needs to be done to catch them and charge them. You can't hide forever.
In this tight economy I feel sorry for the subs who were left holding the bag.
My question is? Why was the public not made aware of his practices earlier to prevent him from unethical practices and taking money all this time.
No different than reporting on a criminal to prevent further crime.
SUN NEWS YOU DROPPED THE BALL ON THIS ONE!!! You knew about all of this for months! And during that time the Gordons continued to build their getaway stash!
As for the Dr. with the addition , if you got 5,000 sq. ft. for 110,000. You should have been skeptical and checked into this builder. I am hopeing there was a typo, otherwise, you need to suck it up as a lesson learned. Nothing that cheap ends up being free.
As a business owner in good standing people need to get smart and hire and check into the reputations of who they hire in the service industry. Just a warning. Don't hire the guy that knocks on your door with a junker of a truck, shovel and a wheelbarrow. Because you will be taken. And never pay before work has begun and until it is finished!!! Called get smart!
I say GO FOR THE MAX!
About Time

Albuquerque, NM

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#17
Jul 30, 2009
 
Tired of Stupids:

You don't understand. The first invoice already had the subs profit, and DS profit built into it. That is the invoice paid by DS.

The second invoice was a DS imposed kickback for giving the sub the work. The extra 10% invoice was shown to the clients, and billed to them. DS was making their profit plus this unethical 10% from the fake invoice.
Tired of Stupids

Albuquerque, NM

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#18
Jul 30, 2009
 
BrokerLandscaperBuilder wrote:
All I can say is I hope the Gordons get what they deserve! Secondly I am so glad I never liked them and became one of their subs.. He still owes me for materials I purchased years ago. I gave up on any hope of being reimbursed. He was a crook when he rolled into town and he is a crook when he left town.
They rode the big wave on everyone else's coat tails.. I am sure they are sunning themselves, drinking margaritas and laughing their butts off with a pile of cash!!
I hope the DA does whatever needs to be done to catch them and charge them. You can't hide forever.
In this tight economy I feel sorry for the subs who were left holding the bag.
My question is? Why was the public not made aware of his practices earlier to prevent him from unethical practices and taking money all this time.
No different than reporting on a criminal to prevent further crime.
SUN NEWS YOU DROPPED THE BALL ON THIS ONE!!! You knew about all of this for months! And during that time the Gordons continued to build their getaway stash!
As for the Dr. with the addition , if you got 5,000 sq. ft. for 110,000. You should have been skeptical and checked into this builder. I am hopeing there was a typo, otherwise, you need to suck it up as a lesson learned. Nothing that cheap ends up being free.
As a business owner in good standing people need to get smart and hire and check into the reputations of who they hire in the service industry. Just a warning. Don't hire the guy that knocks on your door with a junker of a truck, shovel and a wheelbarrow. Because you will be taken. And never pay before work has begun and until it is finished!!! Called get smart!
I say GO FOR THE MAX!
If they owe you money, put a lien on their property for it and collection costs. Then, it can't be sold until the lien is settled. Had to do this a couple of times when clients refused to pay.
Tired of Stupids

Albuquerque, NM

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#19
Jul 30, 2009
 

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About Time wrote:
Tired of Stupids:
You don't understand. The first invoice already had the subs profit, and DS profit built into it. That is the invoice paid by DS.
The second invoice was a DS imposed kickback for giving the sub the work. The extra 10% invoice was shown to the clients, and billed to them. DS was making their profit plus this unethical 10% from the fake invoice.
That's not what I got from the article. If the sub gives DS an invoice for their work, DS takes that, adds their profit and overhead to that amount, then bills his client. When they get paid by their client, DS pays the sub the amount on the the sub's invoice and keeps the markup as profit. Normally, a sub is not going to give you an invoice with profit for you built in. They would have to pay taxes on that profit. But you're saying DS added it in twice somewhere to milk their clients? That would be wrong.
Wondering

Albuquerque, NM

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#20
Jul 30, 2009
 
Doesn't it say something that they did not return calls, and have no comment in the article on these allegations?

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