Thoughts On RealtyShares Closing Its Doors To New Investors

[cleon]

... If your view, or evidence you have, contradicts what the sponsor is telling IRM (and IRM is relaying to us), email IRM at priority@iirrms.com and tell them. I have done this for a couple of projects and they have been responsive...

well stated...

[mspringer]

For those in Linda Terrace, I spoke (electronically) with IRM/RS yesterday and I expect to see an update on the website in the near future.  I don't have any additional information other than I think they are looking a bit deeper this time and hopefully will have more specifics, including a plan of action moving forward.

[dwengca]

Received this private email update after I sent them an email asking about

New Jersey Multifamily Fund II

Philadelphia Multifamily Fund VII

Both of these have been paying consistently every month, but they have recently stopped paying. 





Hi Dennis,

My name is Eric Sullivan and I am the Director of client relations. IIRR management services will be handling all customer concerns on behalf of RealtyShares. We will be happy to try and help.

In regards to New Jersey Multifamily Fund II - sponsor did not pay 2 months.

In regards to Philadelphia Multifamily Fund VII - received a distribution on July 5th for pay period of May. Currently in our approval process. ETA is approximately 5-10 business days. Missing June payment.   

Both of these investment are the same sponsor O-Neill Properties Group.

I will reach out to the asset manager and find out whats going on with the 3 missed payments.

[Sdb]

Thanks for the info. This sponsor has always paid on time, interested in the response.

[ramesh]

In regards to New Jersey Multifamily Fund II - sponsor did not pay 2 months.

Thanks for sharing the info.  I received a slightly different response from Mr. Sullivan today, however.

NJ Multifamily Fund II - we have received a payment in July to cover the May pay period Currently in the approval process. ETA approximately 5-10 business days. Missing June. Our asset management team contacted the sponsor. This matter is pending.

Also, info on Bryant Avenue 2nd Lien Tranche 1

Received a distribution in July that cover June pay period. Currently in the approval process. ETA approximately 5-10 business days.

[GADAWG]

As a FYI - I just checked my documents tab looking for my last K-1, and found that ALL my previous K-1s were updated as of 7-15.   And of course, I received no notifications from RS/IRM that the updates had been posted.

[1UnknownSubject]

Same thing - no notification of the update. Still waiting on another K-1. Have never had to file an extension - and feel this is absolutely ridiculous. 7 months to do a K-1?

[groovydude]

Agreed abut the K-1s. According to someone at iintoo, IRM is a new company formed by both iintoo and RREAF, specifically to manage the RS assets, so it's in their hands.

Aside from the K-1s, they seem to be handling my investments fairly well, but my impression is that they're pretty quick to throw in the towel with those that are underperforming. I don't think they've given the sponsor's any fear that if they stop paying the consequences will be severe at all.

[daletucker50]

Just got this email... from a request of mine on 31 May:

Utah SFR Fund IV

Thank you for your email and apologies for the delay in response. According to our findings, this asset is currently not performing according to the original business plan. The main reasons for this was the borrowers change in business plan from a fix and flip model to a fix, lease and refinance model. This property has been identified as a Tier 3 asset.

Distributions from this investment have not been made in accordance with the original business plan.

The sponsor in this property is responsive to our communications. IRM is working on resolving the matter by way of extension of the maturity to allow for the liquidation of the houses and the repayment of investors, and is expecting to post additional updates each 30 days approximately.

Regards,

Merrene Caines
Customer Services Department
IIRR Management Services, LLC
On Behalf of Realtyshares Inc.[/i][/i]

[dwengca]

Anyone in this?

Ortega Village Townhomes, Jacksonville, FL

No payment, no updates since 3/06.   No financial updates for Q1 and Q2.

Thanks,

Dennis

[ft2008]

Has anyone seen this judgment.. I did not follow this.. Any idea what happened there 
https://www.crowdfundinsider.com/2019/07/149611-sec-posts-final-judgement-in-enforcement-action-against-founders-of-real-estate-crowdfunding-platform-ifunding/?fbclid=IwAR1ZqzcogUYnzO8f_-khb3wU3BfL5Gxvp1We5Lj5eikdPFzLXzEeTDR9tko

[groovydude]

"The judgment against Shah orders him to pay disgorgement plus prejudgment interest of $73,794 and a civil penalty of $75,000."

About the lightest wrist slap possible.

[mspringer]

I know there wasn't a specific timeline discussed on the Franchise Growth call, but has anyone heard anything or have an idea on when we might?

[Dgilpin]

I'm starting to have the opinion that the webinar with FG was just another delay tactic by them.  Don't know what the end game is for them, just delay foreclosure action by IRM I guess?  IRM seemS to be all too willing to take the bait.  The Last message I received about Long Island American Family was that they were going to give buyout talks 30 days to finalize and then begin the foreclosure process...  That was April 22nd.  Interestingly, on the conference call FG said that the outlook of that property was improving and the tenant has been making payments for the last 2 months. SOOO...why hasn't that been disBursed to us? considering that loan hasn't paid dividends in 6 months?!?  The Detroit MSA doghaus deal has had radio silence even longer.  Several commenters on the webinar said they would be contacting the SEC immediately about the ADP fiasco that we were kept completely in the dark about.  Anyone know if there has been action on that?

[JD]

I know there wasn't a specific timeline discussed on the Franchise Growth call, but has anyone heard anything or have an idea on when we might?

I've been wondering this as well. If IRM doesn't contact all of us, as they said they would on the call, we should email them en masse.

I feel like 3-4 weeks is the maximum timeframe they should be waiting before following up so that means giving them until early August to see what happens.

[Nosferatu_FL]

Anyone involved in the BEST WESTERN Toledo  or Prescott woads deals?
Please contact me if you were and legal to pursue legal action.  Both these investments seem to be complete losses.

I contacted a lawyer today and he TOLD me there's case for class action lawsuit after reviewing the documents.
I'm looking to proceed with legal action on this directly against the sponsors and possibly against RS.
Best western link: https://www.realtyshares.com/investments/best-western-toledo
Prescott woods link: https://www.realtyshares.com/investments/prescott-woods-qp

I also asked him about the FG deals and he said the same thing that there's a case for Class action lawsuit.
We are waiting to see what happens with their negotiations with IRM, but I suggest that those who are interested in possibly pursuing legal if things don't go as planned, contact me as well so we have a plan B.

feel free to write me at this email: kss007@yahoo.com  and will try to coordinate another Call with the same Lawyer
to look at our legal options.

[chitown-2020]

Quick Question:   Is anyone getting distributions this month?   I had one that was delayed, but so far nothing else...   

[ramesh]

Quick Question:   Is anyone getting distributions this month?   I had one that was delayed, but so far nothing else...

Between this and last month I have received distributions from fewer than half of my debt deals.  Zero updates or distributions on the equity deals for several months.  When contacted, Eric Sullivan says to "keep in mind that equity distributions are at the discretion of the sponsor" (no argument there), but why no financial statements for a couple quarters?

[1UnknownSubject]

No distributions. One notification that my Cambridge Apts is doing 'fine' and they are trying to sell the property. The University of Toledo Student Housing, no updates, no payment and no K-1. Rapidly approaching August. Frustrated to say the least. Plus I am in the FG Melbourne deal, that is supposed to finish in August - but not holding my breath.

[JD]

Quick Question:   Is anyone getting distributions this month?   I had one that was delayed, but so far nothing else...

Yeah, I've gotten a fair amount this month. Last month was my worst since I first started investing with RS. This month has been better, I got about 8 distributions and had been getting 10-12 before everything went to sh1t.

My debt ones have significantly dropped off but my equity are doing okay and several of them paid out last week.