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: mspringer on June 20, 2019, 04:59:18 AM16620 Linda TerraceIt looks like myself, crossfire, para655, and cheezus so far.The original listing reads as though the sponsor has a $1.9MM loan he wants to refinance. With that he is raising additional money to raze the current structure, build and sell new construction. The senior loan is $4+MM, our second lien (RS') is ~$1.5MM, and then the sponsor/3rd party is putting in around $1MM. The intention was to sell a CONSTRUCTED house for $7MM.From what I can tell, and there have been 0 construction updates since last June, they refinanced the original loan, razed the existing structure, and now have a base of land, and approved plans to build. But rather than building the structure, they are selling this listing as a lot with approved plans for the buyer to build. It would then make sense why the asking price is $4MM rather than $7MM as there is NO HOUSE on the lot.What I don't know is what happens with that money that has not been used between the original loan refinance + leveling costs and the total of the loan sources (~$6.5MM)? My hope is the new people at RealtyShares just did not fully understand the status (since there has been zero communication and I am piecing this together by looking at random google sites) and it is not a matter of the sponsor trying to "sell" this off as they did all the work they intended and are taking a loss but will fully recoup their senior loan.
Quote from: kt1984 on June 20, 2019, 07:33:50 AMI think I did receive some money on the Taylor MI deal which looks like to be around ~53 % of the principal but it did come in 2 different amounts in all. I thought they had ~55% in reserves but may be took some for legal fees. Not sure I have 2 other deals as well which is the Captain D in Shelbyville and the AFC and I believe both of them were fully built so no return from there yet. At least- this is a start, I hope we are able to get at least 80% of our money back when all is said and done.
Quote from: andyo on June 24, 2019, 03:23:13 AMMy RS Dashboard on Church Chicken in Orlando is showing a "Principal" credit of $0.02 on the $ - that's $655 on a $31,000 investment. I hope that's not the end of the story on this one...
Quote from: ATLJAD on June 24, 2019, 11:55:03 AMSome great info on here folks. I feel a bit better knowing we have a forum to express frustrations and gather answers on what is going on @ RS.So, I have 4 investments through RS. All of which are debt deals from 2017 - early 2018. Churches Chicken (Florida), Linda Terrace (Cali), Chicago Retail and Long Island Medical Office. Also, all of these were performing exactly as expected....that is until about the time RS announced they were shuttering. So, I didn't get into this oblivious to the risks. I fully assumed I'd lose some money on 1 of 4 (just the odds, so I thought). However, now all 4 of them are in bankruptcy or some other form of major trouble. And, as I stated, they were all current and progressing nicely until RS shut their doors. I diversified geographically, by borrower, by sector, etc...you know, all of the stuff you are supposed to do to avoid getting virtually wiped out This CAN'T be coincidental. I just can't. Economy is still too good. Rates are low enough. Banks are lending. Real estate values have held up well. So, what is going on here? Seems 1 of 2 possibilities (assuming this is all too coincidental):1. Realtyshares was basically a scam. They were raising $$$ to fund sham deals and had some sort of undisclosed skin in the game. Once they got caught, they closed their doors and high-tailed it out of town before the sh*t hit the fan. OR,2. Once RS went belly-up, all of these borrowers (with smart CPAs/Attorneys), figured out there was NO WAY that RS was going to be able to monitor these investments, so they saw it as an opportunity to get out from under some debt burdens on the cheap (or one of several other schemes I've seen on here).I just don't see any other way that this just happened to so many investments at basically the same time. I know there are smarter minds on here than me. I'd love to hear other opinions.PS - Count me in on any lawsuits against FG or any of these other sham borrowers.
Quote from: andyo on June 25, 2019, 04:31:34 AMWell, I can't share the same optimism. Other than the MSA Chicken in Orlando (Debt), I have an "investment" in Windgate Apartments RS310 (Common Equity) and 12 Inner Loop Townhomes RS261 (Preferred Equity). The Windgate Apartments have never returned a dime despite promises of quarterly distributions to come and being "98% occupied" and the 12 Inner Loop was paying fine until it dried up like most everything else once RS announced although they did pay out for the first quarter of 2019.