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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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dwengca

I just sent RS an email asking for the status on Dec distribution, since I have not receive anything in Dec.  Even from the ones that would normally pay out monthly.  I'll let you guys know if I receive a response.

This is really depressing, have nearly 200k in RS and nothing...

holymackerel

I also sent them an email due to not receiving Dec. distributions, have not heard anything back.  I have 19k invested with them, 12 in debt deals and 7 in a long term equity deal.  I understand the debt deal is secured (senior note) by a lien, but isn't the equity deal secured if the deal pans out and is profitable??  If they go under I can see how they can try to shaft us investors but if its a profitable deal is that still something they can do??

Sam

Quote from: holymackerel on January 03, 2019, 09:52:51 AM
I also sent them an email due to not receiving Dec. distributions, have not heard anything back.  I have 19k invested with them, 12 in debt deals and 7 in a long term equity deal.  I understand the debt deal is secured (senior note) by a lien, but isn't the equity deal secured if the deal pans out and is profitable??  If they go under I can see how they can try to shaft us investors but if its a profitable deal is that still something they can do??

Did you invest a long time ago in single family residentials when the minimum was only $1K a deal?
Regards,

Sam

holymackerel

No I started about 2 and 1/2 years ago.  I have two debt deals, one SFR investment for 5k, one commerical for 7k.  1 equity commerical deal for 7k

Greg

Hi Holymackerel,

The debt deal is usually for short term, How come they didn't pay off that loan? Are you happy with your equity investment?


Sdb

Hello all,

I've been monitoring but have not posted until now. I have a bit over 100K on the RS platform, 1 SFR and 12 commercial debt/equity deals. All are performing as of this post. I can only speak to my individual investments, but I have no reason to believe that it would be in the sponsors best interest not to exit the deals as structured.

My concern as we all share is the future management of the portfolio. It has value and I have confidence that it will be recognized.


cj60031

I heard that they are transferring our investment to someone and all the transactions will be finished by Jan. 31.  Just keep my fingers cross.

Sam

Quote from: cj60031 on January 03, 2019, 05:48:20 PM
I heard that they are transferring our investment to someone and all the transactions will be finished by Jan. 31.  Just keep my fingers cross.

Oh yeah? That would be nice.

I just heard from a reliable source that they have 1-2 offers on the table they are reviewing. So this would jive well with what you've heard. The acquirer is probably doing the final due diligence.
Regards,

Sam

cj60031

 That may be why they are so quiet and no distributions.  The transition is a big job by itself!

Sam

Quote from: cj60031 on January 03, 2019, 06:53:03 PM
That may be why they are so quiet and no distributions.  The transition is a big job by itself!

Yeah, but they risk screwing the deal if they piss off unpaid vendors and investors by ignoring all payments and requests.

If you're the acquirer, you want RS to treat the existing base like gold at this point, not ghosts.
Regards,

Sam

cj60031

I understand that they should do the right things to get a deal.  However, I heard that they have less than 20 people left and their operations were not that good when they had the entire team.  I  do not know how they could deal with hundreds of vendors and thousands of investors now.   I just hope that they could finish their transition soon.  Otherwise, it would be a disaster!

ramesh

Quote from: Sam on January 03, 2019, 08:05:07 PM
Quote from: cj60031 on January 03, 2019, 06:53:03 PM
That may be why they are so quiet and no distributions.  The transition is a big job by itself!

Yeah, but they risk screwing the deal if they piss off unpaid vendors and investors by ignoring all payments and requests.

If you're the acquirer, you want RS to treat the existing base like gold at this point, not ghosts.

It surprises me that they wouldn't shoot out a note to their investors -- however bland and light on specifics -- reassuring investors that they have been incommunicado because they are at work righting the ship.  Better than leaving investors completely in the dark, drowning in total uncertainty and imagining the worst.

Sam

Quote from: cj60031 on January 03, 2019, 08:35:14 PM
I understand that they should do the right things to get a deal.  However, I heard that they have less than 20 people left and their operations were not that good when they had the entire team.  I  do not know how they could deal with hundreds of vendors and thousands of investors now.   I just hope that they could finish their transition soon.  Otherwise, it would be a disaster!

How? By working 20 hours a day, answering every email and taking care of everything they should. Not communicating and not working hard to do the right thing is not an excuse, especially if they are trying to finalize a sale.
Regards,

Sam

dwengca

Quote from: Sam on January 04, 2019, 10:11:35 AM
Quote from: cj60031 on January 03, 2019, 08:35:14 PM
I understand that they should do the right things to get a deal.  However, I heard that they have less than 20 people left and their operations were not that good when they had the entire team.  I  do not know how they could deal with hundreds of vendors and thousands of investors now.   I just hope that they could finish their transition soon.  Otherwise, it would be a disaster!

How? By working 20 hours a day, answering every email and taking care of everything they should. Not communicating and not working hard to do the right thing is not an excuse, especially if they are trying to finalize a sale.

Agree!  I still have not gotten a response from them on the Dec payout.  I hope these guys are still in business and not quietly shut down. 

dwengca

Also, I tried calling their (855) 880-6050 number, and the greeting just directs you to contacts@rs.com.  (which they don't respond anyway...)

I'm now starting to worry...

holymackerel

Yeah my two debt deals were short team, one was 12 months and the other 18 months.  My equity deal was 7 years and i'm 2 years into it :/, thats the one i'm most concerned about.

Sam

Quote from: holymackerel on January 03, 2019, 03:52:25 PM
No I started about 2 and 1/2 years ago.  I have two debt deals, one SFR investment for 5k, one commerical for 7k.  1 equity commerical deal for 7k

Oh, 12K not 12 deals, and 7K not 7 deals.
Regards,

Sam

Sam

Hi Folks,

At last, I got a response from their corporate counsel and CEO, who is back next week. They are alive, busy managing the assets, and working on a transition.

The only thing I can advise folks now is to all stay patient and give them another month. Seems like they are close to the finish line.

We all start thinking the worst when we don't get a response. So I want to let everyone know that  they did respond to me this morning, and I feel relieved that they didn't disappear and are going to work extra hard to make this a smooth transition with the most appropriate buyer.

Hang tough everyone!
Regards,

Sam

cj60031

Sam,

Thanks!  Patient is what we need in this difficult situation.  There is nothing else we could do to make it better.

CJ60031

dwengca

Quote from: Sam on January 04, 2019, 12:28:36 PM
Hi Folks,

At last, I got a response from their corporate counsel and CEO, who is back next week. They are alive, busy managing the assets, and working on a transition.

The only thing I can advise folks now is to all stay patient and give them another month. Seems like they are close to the finish line.

We all start thinking the worst when we don't get a response. So I want to let everyone know that  they did respond to me this morning, and I feel relieved that they didn't disappear and are going to work extra hard to make this a smooth transition with the most appropriate buyer.

Hang tough everyone!

Thank you Sam!