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Started by Sam, November 07, 2018, 11:29:29 AM
Quote from: John_PVF on March 26, 2019, 08:19:08 AMHas anyone heard anything about the sale process? It's been 4.5 months and nothing. Given the various issues with payment clawbacks, calculation errors, delays, continued lack of communication, etc. I struggle to see a sale happening at this point. Who would want to buy this thing anymore? The back end processes appear to be completely manual, which means the asset management fee stream likely isn't able to cover the staffing needed and they're just burning what little cash they have left. With no value to be realized from a bunch of pissed off investors, and no profit from an fee stream, it's only a matter of time before the whole thing just implodes. I hope they'll at least have the courtesy of informing us.
Quote from: John on March 26, 2019, 09:35:55 AMI've actually seen progress. Communication is still sorely lacking, and I have 3 non-performing investments that are incredibly frustrating, but over the last 10-14 days I have received a lot of catch-up payments and become current on 6 of my 7 others.
Quote from: John_PVF on March 26, 2019, 11:55:14 AMQuote from: John on March 26, 2019, 09:35:55 AMI've actually seen progress. Communication is still sorely lacking, and I have 3 non-performing investments that are incredibly frustrating, but over the last 10-14 days I have received a lot of catch-up payments and become current on 6 of my 7 others.I am unfortunately in the opposite position. No updates or payments in quite a while. Even my deals that pay monthly in consistent amounts are MIA.
Quote from: Chicago81 on March 27, 2019, 11:26:07 AMWith respect to Church's Chicken - Winston Salem, I had been calling the neighboring businesses for over a year, including recently, and they have seen no sign of any construction or planned project on the lot. I continue to be concerned that the borrower commingled funds for this project with other projects (which could potentially resemble a Ponzi sceheme, i.e., using new "project" funds to pay old project investors). I am also concerned that the borrower has dissipated the funds.One might accuse me of overreacting, but the circumstances here are alarming: (1) no internet presence for the borrower; (2) borrower default during the interest reserve period; and (3) simultaneous default on several of borrower's projects. Moreover, RS has refused to provide information or even respond to my many (polite) emails; not even a boilerplate response. I have considered potential legal claims against RS and even claims against the borrower (notwithstanding the supposed wall, there may still be direct claims in the case of fraud). But at this point, the course of conduct by the borrower and RS is so shocking that it seems a criminal referral may be appropriate. I agree with others that a rush to sue/threaten/demand could just distract RS and hurt us more. But could anyone blame us, given the foregoing conduct by RS and FG (as described by RS)?As I said before, I am really glad to have found this forum, and I appreciate the input from everyone else.
Quote from: Derek on March 28, 2019, 08:22:40 AMI haven't seen any updates here for 3081 Carrigan Canyon Drive Tranche 4 in awhile. This certainly appears to be a case of criminal activity, as someone has to have walked away with a bag of cash. The sponsor stopped paying and walked away long ago (11/2017), and the property has only suffered even more through RS's negligence and misconduct since. What started with a stated value of 1.9MM *before* the renovation, with $500K now 'spent' on refurb (or, more likely, stuffed into a duffel bag), is now looking at fire sale offers of 1.2-1.3MM. This is for a property that was originally listed for sale at 2.9MM. Poor vetting of the sponsor doesn't even begin to scratch the surface of RS's misconduct on this deal.As far as my other deals, I'm having a very hard time tracking payments because not only is the site no longer current/accurate/in sync, but the payments I do get are being randomly distributed to the various accounts that I've had linked over the years. I have only one account defined for all of my deals, which is what the distributions were going to before RS closed it's doors, but ever since it's been a CF and I have no idea where distributions are going. I've thought about removing all but the one account I want to be used, but given RS's current level of competence I'm thinking it's best to at least receive the payments I am getting and track them down on my end rather than screw around with linked accounts and risk having to coordinate with RS about payments I don't receive as a result. How does any of us even know if we 'missed' a payment?..What a mess
Quote from: CushLash on March 21, 2019, 10:14:30 AMAll-I am growing increasing frustrated by the lack of communication from Realty Shares - I basically received an email from them today regarding one of my investments (RS 277- Lynnview Apartments) stating the sponsor is current with their payments but they are delayed in making distributions because they are transitioning to a third party Fund Administrator. This concerns me even more in that I can understand a 30 day delay or so with a transition as they want to get things right with flow of payments, but its now been over 90 DAYS since the last distribution was made -- I can't help but wonder if they are taking the payments from sponsors and using them to fund the operations of their business while they look for an exit/acquirer rather than distributing these funds to investors. Just all feels very fishy.In an effort to take some action, I reached out to Mark Roederick (https://crowdfundattny.com/about/) yesterday to discuss options. From my research, Mark seems to one of the preeminent legal minds focused on crowdfunding real estate. The range of options we talked about were as simple as writing a demand letter all the way to filing a class action lawsuit. His recommendation where we landed after talking through the options was to engage his company to write a letter to Realty Shares demanding that they take action - part of his thinking was that given that he is well known in real estate crowdfunding circles, a letter coming from him may carry more weight than if one us individually drafted a demand letter on our own. The only kicker was that he wanted $2,500 as a retainer for his efforts -- I'm not super hopeful that a letter from Mark will have an impact, but I'm also tired of sitting around on my hands doing nothing while Realty Shares turns it back on investors so would be willing to go this effort if there was a 5-10% chance this might help shake things loose. Just thought I'd throw it out there to see if there were other investors who were interested in joining together to engage Mark? I figure if we could round up ~20 people, we could each kick in $100 and fund the letter. I hate to throw good money after bad, but $100 seems well worth it.Any thoughts from others on the board?