To return to the forum homepage, please click the banner at the top of your browser.
Started by Sam, November 07, 2018, 11:29:29 AM
Quote from: Beat_The_Fraud on January 24, 2019, 06:25:22 AMHi RameshWhere exactly do you see the description on Goalz website that they are opening the Church's chicken in Westminster, CO? I have invested in Church's in DeLand, FL and apparently Goalz is the franchise for this one too. But, I don't see any information on their website which mentions the restaurants and their locations opening shortly. Please adviceThanks
Quote from: John on January 24, 2019, 09:50:04 AMHow is everyone doing on distributions? I received 2 earlier in January but it has been radio silence since then.
Quote from: jy2005 on January 23, 2019, 04:16:26 PMHi Sam,You asked to share negatives. I have RS investments that are now either in default or delayed payments without any explanations. For the defaulted ones, RS has not provided any update for more than 50 days. Emails sent to email@example.com simply gone silent. This concerns me a great deal. I am sure I am not the only one. Is there anything we investor as a group can do to safeguard our investments, rather than passively waiting for bad things happening?
Quote from: John on January 25, 2019, 05:46:49 AMI only share one investment with you and that's the Detroit MSA DogHaus/Taco John. I discovered before the RS transition through my own due diligence that the restaurant was never built. At the time I discovered this (about September), Amy from IR told me that the sponsor drew down some of the loan to raze the existing structure, but then production ceased. She also told me RS still has more than half of the loan under their control and that the sponsor was trying to sell the cleared lot. I also learned that the project was cancelled in April, something that RS never shared with us. That deal matures in 2 days and obviously they have been radio silent.
Quote from: John on January 25, 2019, 09:43:18 AMI've done 3 Dog Haus deals, the one in Rockford, IL that paid off, the one in Decatur, IL that is struggling and needs a rent reduction to survive, and the combo Dog Haus/Taco John in Taylor, MI. The Rockford and Decatur projects posted regular updates with construction photos. Yet they never posted any for Taylor, MI, despite my repeatedly asking them to. That's when I began to get suspicious. I used Google Earth to look at the location and what stores were nearby. There's a Pier 1 next door and I simply called and asked about the state of the restaurant being constructed next door. The woman I spoke with told me they tore down the old structure and after that work stopped and there had been no activity for months. I confronted Amy from IR about it and she provided me with the details about RS still having more than half the proceeds of the loan in their possession. I asked why they couldn't just return that money to us now and hopefully make us whole when they sell the land. She said they were giving the sponsor time to sell the lot since it was already permitted for a restaurant and another chain/franchisee could step in.I also actually tracked down the developer--American Development Partners--who said all work was halted in April 2018 after they razed the building. He said it was because the sponsor didn't put in the additional equity required for the next loan drawdown. I don't have proof of that but don't know why he would lie to me. It seems like they were supposed to do a lot of additional projects with Franchise Growth LLC and after that the relationship fell apart.
Quote from: svytraveler on January 25, 2019, 06:46:02 AMNot sure about collective action, but previously I did get a response and may have prompted a subsequent notification. I am an attorney and included Esq. behind my name for both messages. In today's message I wrote that the lack of promised updates (and distributions) may cause investors to believe that RealtyShare Is not exercising due diligence to protect their investments. The last notification said that RS had referred the property to their foreclosure vendor and promised a 30 day update on the "process." It is now 50 days and I asked them to share the name of their vendor. Quote from: jy2005 on January 23, 2019, 04:16:26 PMI received a response this afternoon, which said: "I've reached out to our Asset Management team. The foreclosure process continues and they will post an update in the next few days. Our foreclosure vendor prefers that we don't share their contact details so that they may focus on their work without being distracted by individual investor enquiries. We have had indeed had delays this month with distributions due to both the impact of holidays on our January activity as well as some process changes. We expect deals that are distributing to do so before the end of the month. We apologize for the delay and appreciate your patience."
Quote from: jy2005 on January 23, 2019, 04:16:26 PM
Quote from: ramesh on January 25, 2019, 04:18:09 PMI just got off the phone with someone who is ex-RS, and has now moved over to another firm that is a RS sponsor. He says that the new employer perceives a hobbled equity partner as a "financial risk", because they may not be able participate in a potential capital call. This is leading them to consider an early termination of the project by way of a sale — evidently they are in a position to exit profitably. If this is indeed a factor in the thinking of other financially strong sponsors, it might lead to early project closures or recapitalizations, and an early return of capital.
Quote from: Sam on January 25, 2019, 06:08:30 PMQuote from: ramesh on January 25, 2019, 04:18:09 PMI just got off the phone with someone who is ex-RS, and has now moved over to another firm that is a RS sponsor. He says that the new employer perceives a hobbled equity partner as a "financial risk", because they may not be able participate in a potential capital call. This is leading them to consider an early termination of the project by way of a sale — evidently they are in a position to exit profitably. If this is indeed a factor in the thinking of other financially strong sponsors, it might lead to early project closures or recapitalizations, and an early return of capital.Can you clarify your paragraph? What do you mean by joining an RS sponsor? Example please.Who is a hobble equity partner?What termination of project?thx