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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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barnold24


barnold24

Wow - yea I have a feeling my last two deals are going to go through the same thing. The funny part is that they send you notifications about reconciliations that they did and discovered that more money was due you but then never send it.

REI

Quote from: Sdb on April 12, 2019, 02:56:14 PM
I have one that's been on the dashboard for over a month but not received. Got the same response that they would be resubmitted shortly.

Same situation with me. On their dashboard, it shows "Crediting" since 3/11/2019 and have still not received it. Contacted RS several times, and only get a generic response asking me to be patient!

sdnerd

Re: Detroit MSA Dog Haus and Taco John's

Latest update:

"
The sale has been delayed by approximately 30 days. The transaction has gotten a little more complicated. The buyer is still committed to the sale but the buyer indicated that they would be rolling this loan up with others in a package and the equity for the purchase needs to be moved from South America. RealtyShares will update you if the situation changes.
"

We went from "We will hopefully close next week" about a month ago, to this update. Just when I thought one of these was nearing the finish line...

daletucker50

Latest re: Utah SFR Fund IV

04/16/2019
Our attorney has run conflict checks and has been engaged.  We are defaulting the sponsor for payment default, failure to provide reporting and invoking the clause in the OA, that requires the sponsor to liquidate all the Fund's assets in 6 months or have the managing member replaced. We will also be demanding to view the Fund's books and records. RealtyShares will update you when we have additional relevant information to share.

El jefe

Received a rather large distribution into bank account which appears to be from the DME Fund.  Nothing posted on dashboard yet..

Sam

Quote from: El jefe on April 16, 2019, 12:07:47 PM
Received a rather large distribution into bank account which appears to be from the DME Fund.  Nothing posted on dashboard yet..

Ditto! About 6% of my total fund commitment. You?

What a nice surprise.
Regards,

Sam

El jefe

Same... not sure why the distribution would be so large (unless it includes some return of principal) so eager to get some explanation.  Otherwise, it could just be wrong..

barnold24

Wonder if that means they are going to start processing distributions again if you guys received them?

Sam

Quote from: El jefe on April 18, 2019, 05:04:10 AM
Same... not sure why the distribution would be so large (unless it includes some return of principal) so eager to get some explanation.  Otherwise, it could just be wrong..

Cool. Can't be wrong. And if it is, I'm keeping my money!

Looks like Q42018 distribution money. So the distribution is pretty late.
Regards,

Sam

El jefe

Yeah, but for the distribution to make sense they must have sold or refinanced one of the properties.  Anyhow, the fact that we both got the same is comforting.  Between us we own more than 10% of the fund, so let's stay close Shogun Sam..

El jefe

Sam, mystery solved re DME distribution.  As you will see from the notification they did indeed exit one of the portfolio investments, hence part of the distribution is effectively return of principal, as expected..

Sam

Quote from: El jefe on April 19, 2019, 04:28:35 PM
Sam, mystery solved re DME distribution.  As you will see from the notification they did indeed exit one of the portfolio investments, hence part of the distribution is effectively return of principal, as expected..

Indeed. I'm impressed with their Q4 write-up with charts and everything.

The Austin property was a $500K investment and we got back $623K. So a 24.6% return in two years. Am I reading the chart right?

Out of the 17 investments, 13 are performing, 3 are underperforming but still performing, and 1 looks like a loss. I would say this is a VERY good result no?

I compare these results to a 17 stock portfolio investment. I would be thrilled if 16 out of 17 were making me money and only 1 stock losing me money.
Regards,

Sam

barnold24

I am more confused now than ever how they can send money to certain people but not others. Given they are showing funds received for my investments then why can't they send the funds since we know now that they can send money!

Sdb

Understand, I have one that has been out there for over six weeks. But.. I have had several distributions paid and credited over the same time. Have to believe that's it a function of the small staff at RS. I hope the letter that was sent will get a response that will clarify many of our concerns.

mspringer

Is anyone invested in La Bella Palms on RealtyShares?  They just posted news today on it and before I get my hopes up, I wanted to see what others thought of it.

kt1984

Has anyone heard from RS about FG. I received 2 updates today and one update last week. I am invested in 3 properties the Taylor MI Dog Haus/Taco John, Captain D at Shelbyville and American Family care in West Islip NY. Following are the updates :

Detroit MSA Dog Haus and Taco John's: The sale has been delayed by approximately 30 days. The transaction has gotten a little more complicated. The buyer is still committed to the sale but the buyer indicated that they would be rolling this loan up with others in a package and the equity for the purchase needs to be moved from South America. RealtyShares will update you if the situation changes.

Louisville MSA Captain D: The discussions with the borrower regarding bringing in outside investors to buy this loan have moved forward and we are working to complete our due diligence, including determining a final value for a buy-out. We will give this process 30-days to finalize transaction terms. We will begin to foreclose if, after 30-days, we believe we are not close to a deal. RealtyShares will update you when we have additional relevant information to share.

Long Island American Family Care: The discussions with the borrower regarding bringing in outside investors to buy this loan have moved forward and we are working to complete our due diligence, including determining a final value for a buy-out. We will give this process 30-days to finalize transaction terms. We will begin to foreclose if, after 30-days, we believe we are not close to a deal. RealtyShares will update you when we have additional relevant information to share.

So the common theme is 30 days of more time- it looks like the Detroit MSA Dog Haus and Taco John's buyer could potentially be buying all other loans as well. I am very concerned how this is going to work out? John- any update on your other Franchise Growth deals including the one that was shut down?

mspringer

Here's what was just posted on Franchise Growth's Church's Chicken in Apopka, FL.  So it looks like there is a standard update across all of their investments.

The discussions with the borrower regarding bringing in outside investors to buy this loan have moved forward and we are working to complete our due diligence, including determining a final value for a buy-out. We will give this process 30-days to finalize transaction terms. We will begin to foreclose if, after 30-days, we believe we are not close to a deal. RealtyShares will update you when we have additional relevant information to share.

ramesh

Quote from: mspringer on April 23, 2019, 08:17:32 AM
Here's what was just posted on Franchise Growth's Church's Chicken in Apopka, FL.  So it looks like there is a standard update across all of their investments.

The discussions with the borrower regarding bringing in outside investors to buy this loan have moved forward and we are working to complete our due diligence, including determining a final value for a buy-out. We will give this process 30-days to finalize transaction terms. We will begin to foreclose if, after 30-days, we believe we are not close to a deal. RealtyShares will update you when we have additional relevant information to share.

Yes, verbatim language in the notification this morning for Church's@Westminster, CO, another Franchise Growth deal.

mspringer

Quote from: ramesh on April 23, 2019, 08:51:59 AM
Quote from: mspringer on April 23, 2019, 08:17:32 AM
Here's what was just posted on Franchise Growth's Church's Chicken in Apopka, FL.  So it looks like there is a standard update across all of their investments.

The discussions with the borrower regarding bringing in outside investors to buy this loan have moved forward and we are working to complete our due diligence, including determining a final value for a buy-out. We will give this process 30-days to finalize transaction terms. We will begin to foreclose if, after 30-days, we believe we are not close to a deal. RealtyShares will update you when we have additional relevant information to share.

Yes, verbatim language in the notification this morning for Church's@Westminster, CO, another Franchise Growth deal.

What I am disappointed in is my direct question to them was how much money has been given to FG to this point for this project.  While I did receive a direct email response from RS on this email string, it was simply a copy and paste of the update that was posted publicly as well as a message that this was all the info they have at this time.  I understand the person who is sending me the email probably does not have any additional information.  But I would be very disappointed if RealtyShares did not have an understanding of how much money they have given to FG for this project and how much, if any, they have left in reserve.  I have not received a monthly distribution since January, so maybe that is my answer?