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Thoughts On RealtyShares Closing Its Doors To New Investors

Started by Sam, November 07, 2018, 11:29:29 AM

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Jim6058

Thanks, Chitown. My other two deals with RS are not in the distribution state yet, so they're really quiet.

I hope we can do a necropsy on this beast after the smoke clears.  :o

ramesh

Not sure if this agrees with others' experience, but I find that under the new business operators RealtyShares is no more responsive than before.  I wrote asking for information on the status of a couple deals nearly ten days ago, and resent the mail a few days ago, but no word back.  I am going to put this down to starting problems, and I hope things improve.

Dgilpin

Well here we are 43 days since The Taylor MI Dog Haus deal was supposed to be delayed 30 days, and 36 days since the Long Island American Family care deal was given 30 days to foreclosure, with no updates on the conclusion. Hoping this means they are delaying because they are close to a sale, but something tells me that's a little too optimistic.

Hindsight2020

Oddly, one of my investments with RREAF as sponsor, the Charleston Cambria Hotel, which makes a current preferred interest payment monthly, hasn't made a payment since 4/11. This is despite the fact that the total current preferred interest payments for the 3-year term of the deal is in a reserve controlled by RealtyShares. (The deal is about 2 years old.)

erdenis

Same here , I asked for some general status on a few deals  and got the same copy and paste response. Looks like two deals will be late if I don't receive payments this week. Hopefully, the transition to the new operators happens soon and fixes all of this.

1UnknownSubject

I am still waiting for tax documents for the 2 K-1 investments. Never filed an extension in my life.  I am part of FG Church's Chicken too in Melbourne. No info still to this date. Sorry, had to get the frustration out of my system....

Hindsight2020

I have had email exchanges with the RealtyShares CEO and sent this today:

In an effort to assist with communication efforts, which still are nowhere near what they should be, I suggest that you implement a weekly update for all delinquent investments. Every single delinquent investment needs an update weekly. It's unacceptable to get an update that the paydown of a delinquent investment has been delayed 30 days, and then still be sitting here waiting at day 45 wondering what is going on, while inquiries are unanswered (DogHaus/Taco John/Taylor, MI). If we don't understand how you are actively pursuing possible fraud, we will assume the worst. In fact, each customer should receive a weekly email on all of its investments, but you clearly are not equipped for that.

daletucker50

Answer to my request for an update on my 4 non-performing investments:

"My apologies for the delay in my response. I am unable to answer specific questions on your investments however you should be receiving an email from the joint venture entity this week with updated investor relations contact info. I can say that summer tree is one of our properties and has been performing remarkably well. I expect that any delays in funding you may have been experiencing are a result of the fund administrator transition to assure."



Sojuboy

Hi all, just found this forum. I also have several investments with realtyshares. Of them 4 are debt deals under the same franchise growth. Please let me know if I can add to your collective voice to RS.

tommy4175

I guess the joint venture is between REEAF and Iintoo.
I just got an email and joined the site on iintoo.

"We are confident that our innovative investment platform, our equity protection product and our data-driven, curated approach to delivering premium investment opportunities will make us a leading brand that investors can depend on as they seek new ways to diversify their portfolios."

The fees seem pretty high.

Thoughts?

mspringer

Just got this update on La Bella Palms, Dallas TX.  It's an equity deal, so there have not been payments since 2017.
Keeping fingers crossed it goes through and and money actually comes back to me.  Anyone in on this one and have an idea of about how this will break down with regards to ROI?

RealtyShares is pleased to announce that the sponsor, Creative Realty Partners, managed to successfully close on the sale of La Bella Palms on 5/23/19 for $x. The sponsor plans to submit the final distribution once they finalize the accounting. RealtyShares will post an update with the distribution details once we receive the final distribution from the sponsor along with the support documentation.

Sam

Quote from: tommy4175 on May 30, 2019, 10:08:30 PM
I guess the joint venture is between REEAF and Iintoo.
I just got an email and joined the site on iintoo.

"We are confident that our innovative investment platform, our equity protection product and our data-driven, curated approach to delivering premium investment opportunities will make us a leading brand that investors can depend on as they seek new ways to diversify their portfolios."

The fees seem pretty high.

Thoughts?

My thoughts are that I'm not gonna invest one dollar with them until I know they are properly looking after my existing investments. Neither should any of you.

They need to prove to us that they are a good and responsible operator after the acquisition.  I would wait at least six months to see how they do before putting in a new capital to work.
Regards,

Sam

chitown-2020

Quote from: Sam on June 03, 2019, 07:18:50 AM
They need to prove to us that they are a good and responsible operator after the acquisition.  I would wait at least six months to see how they do before putting in a new capital to work.

I 100% agree.    In this particular case, a significant amount of risk has been added to our portfolios, well beyond normal, as a result of change in control of operations.    They really need to prove their competence.    They've purchased a book of businesses, so there is a real opportunity for them to earn our trust--but for sure that's not automatic.

Sdb

I'll not place another dime in any platform that is not completely transparent. Slick websites, overly optimistic returns, and sponsor descriptions that are nothing but marketing hype... until someone in this space offers a honest product I'm not interested. We'll see what we have here, frankly I'm not optimistic. Sure hope I'm wrong.

mspringer

Has anyone received their 2018 K-1 yet?  Last year I got mine in early April and of course this year added to the confusion.  But 2 months out seems rather long.  My assumption is the sponsors should have been on the same clock regardless of RS' turnover.  How long does it take to do a quick review of a document and then send it along?  Although based on FG's "quick review", maybe a bit of a deeper dive is warranted?

Hindsight2020

Quote from: Sam on June 03, 2019, 07:18:50 AM
Quote from: tommy4175 on May 30, 2019, 10:08:30 PM
I guess the joint venture is between REEAF and Iintoo.
I just got an email and joined the site on iintoo.

"We are confident that our innovative investment platform, our equity protection product and our data-driven, curated approach to delivering premium investment opportunities will make us a leading brand that investors can depend on as they seek new ways to diversify their portfolios."

The fees seem pretty high.

Thoughts?

My thoughts are that I'm not gonna invest one dollar with them until I know they are properly looking after my existing investments. Neither should any of you.

They need to prove to us that they are a good and responsible operator after the acquisition.  I would wait at least six months to see how they do before putting in a new capital to work.

I reached out to the IR Director at RREAF to inquire about how things are progressing and stressed that I and other RealtyShares investors are unlikely to invest anything in their deals until we know how things are evolving and significant amounts of remaining capital have been returned. She responded immediately and offered to set up a call directly with the CEO. Time will tell, but this is a welcome departure from the RealtyShares treatment, even when it was operating "normally".

John_PVF

Quote from: Hindsight2020 on June 04, 2019, 05:38:30 AM
I reached out to the IR Director at RREAF to inquire about how things are progressing and stressed that I and other RealtyShares investors are unlikely to invest anything in their deals until we know how things are evolving and significant amounts of remaining capital have been returned. She responded immediately and offered to set up a call directly with the CEO. Time will tell, but this is a welcome departure from the RealtyShares treatment, even when it was operating "normally".

I agree with your sentiments.  They have to do us right by what we already have put into this before I put in any new money.

DECA

Quote from: John_PVF on June 04, 2019, 07:52:31 AM
Quote from: Hindsight2020 on June 04, 2019, 05:38:30 AM
I reached out to the IR Director at RREAF to inquire about how things are progressing and stressed that I and other RealtyShares investors are unlikely to invest anything in their deals until we know how things are evolving and significant amounts of remaining capital have been returned. She responded immediately and offered to set up a call directly with the CEO. Time will tell, but this is a welcome departure from the RealtyShares treatment, even when it was operating "normally".

I agree with your sentiments.  They have to do us right by what we already have put into this before I put in any new money.

I agree 100%.  We need to get them to handle the RS deals with proper care to salvage them in the best way possible.  After seeing how that goes, we need to evaluate whether to take further action against RS and FG.

1UnknownSubject

Quote from: 1UnknownSubject on May 29, 2019, 11:00:23 AM
I am still waiting for tax documents for the 2 K-1 investments. Never filed an extension in my life.  I am part of FG Church's Chicken too in Melbourne. No info still to this date. Sorry, had to get the frustration out of my system....

No, I have not received any for the 2 investments I have. I had to file an extension for my taxes, which I have never had to do in my life. Freaked me out a little bit. Sent several emails, still have not heard anything back. Really annoying and unprofessional.

dwengca

Here is another example where I think RS is doing very little to nothing to protect our interest...

Just got this update

As updated last, we commissioned a title search on two properties we thought the guarantor might own and neither house was owned by him. We are now dropping our pursuit of the guarantor. There will be no further distributions.

333 Parnassus Avenue


So, that's it?  RS basically just gave up.   So much about holding the guarantor accountable.  This is basically "we ran a title search and we didn't find anything so.. that's it".    How about send it through collections, lawsuit, garnish future wages and etc. 

This is such BS.