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Started by Sam, November 07, 2018, 11:29:29 AM
Quote from: dwengca on June 11, 2019, 06:26:07 PMReceived full payout on The Realm Multifamily in Fort Worth, Fort Worth, TX today. Actually ended up getting a good returned on this one. Invested since 8/2016, 15k invested and received 21.5k back.Wish all of them or if not most would end up with similar results. I still have 150k+ in RS.
Quote from: mspringer on June 12, 2019, 05:10:39 AMQuote from: dwengca on June 11, 2019, 06:26:07 PMReceived full payout on The Realm Multifamily in Fort Worth, Fort Worth, TX today. Actually ended up getting a good returned on this one. Invested since 8/2016, 15k invested and received 21.5k back.Wish all of them or if not most would end up with similar results. I still have 150k+ in RS.La Bella Palms was about 23% total over 2 years. I'm certainly not going to look a gift horse in the mouth at this point and very happy with at least my money back, but the investment sold for more than anticipated and thus I expected a bit more. Did you receive any kind of breakdown of the actual waterfall of payback on The Realm? I know what is in the initial offering but just wondering if RS should also give us the actual once completed.I am in an FG deal, so yes, I am very happy to have some money back on other deals to help make up for that likely loss.
Quote from: Hindsight2020 on June 13, 2019, 05:26:15 PMFG seemingly never intended to honor the Taylor, MI settlement agreement. It was another sucker play for delay that RS fell for. I believe we'll get the construction reserve back soon (about 55% of the original loan), but the remaining recovery will be negotiated based on the appraisals for the various FG loans. At least the entity owns a cleared plot of land. That has to be worth something meaningful.
Quote from: Mark on June 14, 2019, 09:19:47 AMUpdate on another FG deal today. Sounds like IIRR is trying to prepare us for what will be a disappointing amount of principal returned... (Also, still no return of the balance of the construction loan that remains in RealtyShares hands)..IRM is keeping investor's interests in the forefront of our work to conclude this matter. We will continue to provide new information quickly, whether it is good or bad news.
Quote from: Dgilpin on June 14, 2019, 11:16:46 AMSame exact message for Long Island Family care in West islip NY. Somehow this is an even bigger disaster than we expected. I sure hope new management has some ace in he hole leverage for recovery, but it sounds like they're just setting us up for terrible news.
Quote from: Hindsight2020 on June 14, 2019, 10:39:49 AMSame or similar notice for Decatur, IL Dog Haus, which was fully completed and operated for a year before closing earlier this year. Of course FG wants to buy this loan at a discount. FG apparently shut this restaurant without attempting to negotiate lower rent, even though I understand the franchisee wanted to keep operating it with a lower rent. If FG is allowed to now buy the loan at a "failed restaurant" discount—creating substantial losses for investors--they will basically be buying a completed new restaurant for a very small fraction of its value as an operating asset. The loan on Decatur is $2.256 million. The rent was $270K. They used a 7.83% cap rate in the initial investment presentation to value it at $3.45 million, but said the cap rate comp was more like 6.5%. Now, for kicks, let's say they pay 40 cents for the loan, or about $900K. Then they re-open the restaurant or find another operator to pay them $150K in rent. Even using a 9% cap rate the building's worth $1.7 million. In the process, we lock in a loss of $1.35 million, and they basically double their money on the loan buyout. What's to stop FG from doing this? I assume that's what's going to happen. What about the franchisee's rent guarantees? What are those worth? These are all things RS has kept investors in the dark on. I encourage everyone in these FG deals to ask about it. Email firstname.lastname@example.org and demand answers.
Quote from: mspringer on June 14, 2019, 11:48:05 AMChurch's Chicken in Orlando just received identical update. This location was near completion in January, and I'm guessing there was very little left in reserve on this one. Could IIR go to someone like Goalz and just eliminate the FG portion at this point?
Quote from: JD on June 14, 2019, 11:19:08 AMJust signed up to this forum and so glad to see others working with the same RS issues I am.At the moment, I have 2 FG Church's Chicken deals that have gone into default and 2 Chicago Retail Portfolio deals that are also problematic. I see that you guys have discussed them here already so I'm chiming in to ask if there's anything I can do to voice my concerns as well. Or maybe we just need to straight out sue these guys.I haven't read through this whole thread yet but I will stay on top of all posts from here on out. Please feel free to reach out if I can help in any way.