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#21
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by dwengca - September 19, 2021, 02:38:32 AMSo this one will be a total 100% $20k loss for me. Received the below update. It sure seems like they won't go after the 3 partners who were the guarantors of this deal. What is the point of having these guarantors? Basically they meant nothing. Investing in RS was probably the dumbest thing I have ever done. I'm staying away from these BS for the rest of my life.
As mentioned in the last update, we have requested much more detail than just a summary of the
expenses as previously provided by one of the Managing Members. We have been in
communication with him, and we anticipate we should get additional information soon to determine
if the expenses were legitimate and there was an actual loss. Three of the four Managing Members
are guarantors under the Operating Agreement, and we will have legal counsel determine if there is
any recourse against them for the apparent loss on this investment. Even if the guarantors are
liable for repayment of the RS investment, there would likely be a lengthy and expensive legal
endeavor in which there is no certainty of outcome. Any recovery of the RS investment is highly
uncertain at this point.
As mentioned in the last update, we have requested much more detail than just a summary of the
expenses as previously provided by one of the Managing Members. We have been in
communication with him, and we anticipate we should get additional information soon to determine
if the expenses were legitimate and there was an actual loss. Three of the four Managing Members
are guarantors under the Operating Agreement, and we will have legal counsel determine if there is
any recourse against them for the apparent loss on this investment. Even if the guarantors are
liable for repayment of the RS investment, there would likely be a lengthy and expensive legal
endeavor in which there is no certainty of outcome. Any recovery of the RS investment is highly
uncertain at this point.
#22
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by berkel - September 10, 2021, 06:22:11 AMReceived a payment for the FG American Family Care in Largo FL. Here is the notification:
IRM on behalf of RealtyShares, Inc. processed the payment for your investment in RSL.2017A.163 -
8040 Ulmerton Road - American Family Care (Largo, FL). This distribution covers the accrual period
from 06/19/2019 to 08/31/2021.
The amount was $34.49, but note the accrual period!
I had "invested" $5k in this one and received $2300 in principal back in 2019 + $450 interest prior.
So there is still $2600 outstanding. Another notification say this deal is one of the last to get bought out closing "around" Oct 2021. Per the other experiences, I'm not expecting much back of my $2600 but hopefully something...
Still have one other non FG deal that is pending and hope to recoup that so I never have to look at RealtyShares again.. GLTA
IRM on behalf of RealtyShares, Inc. processed the payment for your investment in RSL.2017A.163 -
8040 Ulmerton Road - American Family Care (Largo, FL). This distribution covers the accrual period
from 06/19/2019 to 08/31/2021.
The amount was $34.49, but note the accrual period!
I had "invested" $5k in this one and received $2300 in principal back in 2019 + $450 interest prior.
So there is still $2600 outstanding. Another notification say this deal is one of the last to get bought out closing "around" Oct 2021. Per the other experiences, I'm not expecting much back of my $2600 but hopefully something...
Still have one other non FG deal that is pending and hope to recoup that so I never have to look at RealtyShares again.. GLTA
#23
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by mspringer - September 03, 2021, 05:42:41 AMQuote from: Kalliste on September 01, 2021, 10:30:58 AM
Allover, what are your lessons?
I won't speak for Allover, but one lesson I learned was:
If you want to invest in real estate, do so with a real estate company that outsources their platform.... NOT a platform company that outsources their real estate.
#24
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by Kalliste - September 01, 2021, 10:30:58 AMAllover, what are your lessons?
#25
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by Allover - August 30, 2021, 08:48:51 AMAll,
First post in a while.
Gotten some payouts in recent weeks. Haircuts all around.
Its mind blowing to me that someone could manage to lose money on a fast food joint in Orlando Florida.....Yet here we are. Now more than ever before I can not help but feel there was some fraud here. More than just stupidity. More than just careless business practice. Fraud. Its just too systematic. Happened too many times. To many places. Losing money in CA real estate in this market?? Losing money in FL real estate in this market? WTF??
The only good news is that I am shortly ( this year) to be fully done with this pack of clowns.
Net, Net, Net It looks like I am going to have lost about $15,000 after its all said and done. Plus a ton of time and hassle and heartache.
An expensive, yet valuable lesson.
Once again ; If anyone knows anyone in some type of law enforcement agency please share your experiences with RS with them.
Only when people with badges show up will the real truth start coming out.
Until then they will hide the facts by telling people they cant find the documents, etc.
BTW : Lawsuit is going nowhere so don't count on being saved by that.
Good luck to all !!!
First post in a while.
Gotten some payouts in recent weeks. Haircuts all around.
Its mind blowing to me that someone could manage to lose money on a fast food joint in Orlando Florida.....Yet here we are. Now more than ever before I can not help but feel there was some fraud here. More than just stupidity. More than just careless business practice. Fraud. Its just too systematic. Happened too many times. To many places. Losing money in CA real estate in this market?? Losing money in FL real estate in this market? WTF??
The only good news is that I am shortly ( this year) to be fully done with this pack of clowns.
Net, Net, Net It looks like I am going to have lost about $15,000 after its all said and done. Plus a ton of time and hassle and heartache.
An expensive, yet valuable lesson.
Once again ; If anyone knows anyone in some type of law enforcement agency please share your experiences with RS with them.
Only when people with badges show up will the real truth start coming out.
Until then they will hide the facts by telling people they cant find the documents, etc.
BTW : Lawsuit is going nowhere so don't count on being saved by that.
Good luck to all !!!
#26
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by mspringer - August 26, 2021, 05:04:09 AMQuote from: sdnerd on August 25, 2021, 12:58:04 PM
My Realtyshares/Financial Growth saga is finally appearing to be at an end. For those that are interested:
Louisville MSA Captain D's = 67% loss of principal. Total loss of 58% after accounting for interest distributions.
Detroit MSA Dog Haus and Taco John's = 47% loss of principal; 36% after distributions.
Coastal Florida Church's Chicken, Melbourne, FL = 66% loss of principal; 45% after distributions.
Fortunately all of my other deals with RS exited successfully with some decent numbers. As a result my grand total is a $10,000 loss with RealtyShares and a couple years opportunity cost.
Annoying to say the least, and I'm still somewhat amazed how deep some of those haircuts were considering the current market. Hope the rest of you got better results with your FS properties!
Similar for me and overall I am down a little. While I am also amazed they weren't able to get more for FG in today's market, somehow RealtyShares and I were able to find a real dud in Pacific Palisades, CA.
It was a $1MM 2nd lien that went to tearing down the existing house and then default. Just saw the lot sold Jun '21 for $2.3MM with a Zillow estimate of $5.2MM.
I still have no idea how you could lose money in real estate from 2017 until now. Yet... here we are.
#27
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by andyo - August 26, 2021, 03:20:26 AMSo - MSA Orlando Church's Chicken - just received a check showing a 73% loss of principal, 62% after considering prior earnings. The dashboard says that the balance (the 73%) is still an active investment but I'm not sure how - if they've sold the debt, doesn't that mean that the deal is over?
#28
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by sdnerd - August 25, 2021, 12:58:04 PMMy Realtyshares/Financial Growth saga is finally appearing to be at an end. For those that are interested:
Louisville MSA Captain D's = 67% loss of principal. Total loss of 58% after accounting for interest distributions.
Detroit MSA Dog Haus and Taco John's = 47% loss of principal; 36% after distributions.
Coastal Florida Church's Chicken, Melbourne, FL = 66% loss of principal; 45% after distributions.
Fortunately all of my other deals with RS exited successfully with some decent numbers. As a result my grand total is a $10,000 loss with RealtyShares and a couple years opportunity cost.
Annoying to say the least, and I'm still somewhat amazed how deep some of those haircuts were considering the current market. Hope the rest of you got better results with your FS properties!
Louisville MSA Captain D's = 67% loss of principal. Total loss of 58% after accounting for interest distributions.
Detroit MSA Dog Haus and Taco John's = 47% loss of principal; 36% after distributions.
Coastal Florida Church's Chicken, Melbourne, FL = 66% loss of principal; 45% after distributions.
Fortunately all of my other deals with RS exited successfully with some decent numbers. As a result my grand total is a $10,000 loss with RealtyShares and a couple years opportunity cost.
Annoying to say the least, and I'm still somewhat amazed how deep some of those haircuts were considering the current market. Hope the rest of you got better results with your FS properties!
#29
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by mspringer - August 25, 2021, 08:30:18 AMJust got info on Franchise Growth and while that was a pretty deep cut, at least there is finally some closure.
#30
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by John_PVF - August 05, 2021, 06:49:09 AMHaven't seen much activity on here recently, but was curious if anyone had received any K-1s from Realtyshares for 2020 yet. I've reached out to IIRM a few times, but the answer is always the same: they are with the administrator that processes them, and that there's nothing contractually they can do to force them to work faster and get them out to us. This answer is unsatisfactory to me as they have taken longer and longer each year despite having more and more investments close. The only deadline that seems to have any sticking is the Oct 2021 extended filing date, but I don't take much solace from that. I could have filed in February were it not for this. I just don't think they (IIRM or the administrator) are making this a priority and need a little more pressure to do so. Thoughts?