Thoughts On RealtyShares Closing Its Doors To New Investors

[cfojim]

Received a reply to ignore the N.Y. K1's. Looks to be an error.

After taking a second look at my erroneous NY K-1's, I see no income is allocated to NY, so I now feel comfortable ignoring it.

[barnold24]

Cfojim - my apologies - you win this argument because I would definitely believe a company that went bankrupt and leaves no paper trail. Hate to be invested in the company that you are the cfo of!!

[cfojim]

Cfojim - my apologies - you win this argument because I would definitely believe a company that went bankrupt and leaves no paper trail. Hate to be invested in the company that you are the cfo of!!

barnold24, I didn't realize we were arguing. I apologize if I somehow offended you.

[barnold24]

Cfojim - my apologies - you win this argument because I would definitely believe a company that went bankrupt and leaves no paper trail. Hate to be invested in the company that you are the cfo of!!

barnold24, I didn't realize we were arguing. I apologize if I somehow offended you.

Not offended at someone on a forum

[mspringer]

Cfojim - my apologies - you win this argument because I would definitely believe a company that went bankrupt and leaves no paper trail. Hate to be invested in the company that you are the cfo of!!

...well that escalated quickly
-old barn

[barnold24]

Cfojim - my apologies - you win this argument because I would definitely believe a company that went bankrupt and leaves no paper trail. Hate to be invested in the company that you are the cfo of!!

...well that escalated quickly
-old barn

Just saying is all - two differences of opinion on the nature of the investment and its tax reporting. One believes the company and the sponsor. What company would leave no paper trail? But again it is the accountant in me and he a CFO so outranked - haha

[mspringer]

Anyone else cringe when they see there is an update on their RealtyShares dashboard? 

Seems it's been such a long time since receiving good news from RS that even neutral news calls for a tiny celebration. 
Just a final clean up and closure on La Bella Palms but hey... it wasn't asking for money back.

[JD]

Anyone else cringe when they see there is an update on their RealtyShares dashboard? 

Seems it's been such a long time since receiving good news from RS that even neutral news calls for a tiny celebration. 
Just a final clean up and closure on La Bella Palms but hey... it wasn't asking for money back.

Yuuuuuuup, I'm pretty much scared to look most of the time.

Not too dissimilar to what I posted awhile back:

Just got notification that Communications Drive Lien is also going to be an almost assured default.

I know things are bad when something like that comes in and I feel a wave of relief, saying to myself: "oh well, at least I *only* had ten grand in that one."

What in the ever-loving...

[magpie]

Has anyone heard any news on the FG appraisals or next steps?  No one at RS responds to me.

[princyraj]

I can't find the Facebook page at https://www.facebook.com/groups/362978171187445/?fref=nf - Facebook comes up with no access or availability.

Is anyone else on the Windgate apartments investment? What do we have to do to get a K1 out of these guys??

I have sent 2 emails about the K1 for Windgate and no luck. I recommend you to send them an email too. Let's hope they get their act together on this simple ask.

[ft2008]

I have a K1 related question. I received a few K1s 10 days ago and almost filed my tax returns based upon the K1s (as I am due a refund that is stuck up due to these K1s) and then received a memo from RS indicating they made an error in K1 and will be sending an updated one.. The question I have when will it be safe to file the tax returns such that RS cannot come back after that date and say oops sorry we made a mistake.. Is it Sept 15th the absolute last deadline for K1s

[1UnknownSubject]

I have received a K-1 for one of my investments. I am going to wait about 10 more days before filing my taxes. On the other investment I had that supplied a K-1, it was updated 2 times from the original.

[MSH]

Anyone else cringe when they see there is an update on their RealtyShares dashboard? 

Seems it's been such a long time since receiving good news from RS that even neutral news calls for a tiny celebration. 
Just a final clean up and closure on La Bella Palms but hey... it wasn't asking for money back.

I'm invested in two deals...16620 Linda Terrace (Southern Cal), which doesn't sound promising at all, and Vivante Apartments (Northern Cal). At least today's update on Vivante sounds promising...

Vivante Apartments – Asset Update (8/7/19)
08/07/2019

As previously reported, IRR Management Services, LLC (IRM) has assumed asset management and fund administration functions of this investment.

According to our findings, this asset's performance is not consistent with the original business plan because the maturity date passed without repayment. However, the borrower has been responsive and forthcoming to IRM's communications. This loan has been identified as Tier 1 asset.

The last update discussed a repayment of the investment by the end of July 2019. IRM checked with the borrower about the pay off. The borrower said HUD, their take-out lender, has taken longer than expected to deliver a firm loan commitment. The commitment was received earlier this week at a loan size of $17.45 million, which will go towards repaying the existing $13.5 million 1st position bridge loan as well as RealtyShares' $1 million preferred equity investment. The borrower reports that the process so far has taken more than eight months, but they are expecting to rate lock within a few days. The borrower believes it will take another two months before the loan funds. The borrower stated that they are committed to paying the preferred interest through exit.

IRM concluded that the borrower's exit plan has a good likelihood of success and has deferred the plan to put the loan in default (which was discussed in the last update). IRM and the borrower are discussing the terms of a short extension of the maturity date.  IRM will provide new updates as meaningful information is received.

Please continue to monitor the Investor Dashboard for updates and keep your bank account information current so our fund administrators can accurately process payments and avoid delayed or missed payments.

*Disclaimer: All of the information presented above is on an as-is basis, as provided to our team members, and has not been independently verified by IRM.

IRM Asset Management Team

[princyraj]

Update on K1 for Windgate

"The K-1 is in process. There are inconsistencies between the sponsor K-1 and RealtyShares records which has delayed the release of the K-1s."

I have asked for an ETA.

[ramesh]

Here's an update I received today on a debt deal.  In contrast with RealtyShares,  IRM, at least, seems to be run by grownups.

====================================

Camden South Carolina Multifamily Portfolio

According to our findings, this loan is not performing according to the original business plan. The borrower is behind on two interest payments and has been working to exit the loan for several months. This project has been identified as a Tier 2 asset.

RealtyShares and then IRM have been working with the borrower since the end of May 2019 to repay the loan. The borrower was pursuing an unsolicited offer to purchase the property and RealtyShares granted the borrower a three month extension of the maturity date (to September 1, 2019) to complete the this sale.  The sale was not consummated and the borrower turned to a refinance as the means to repay the loan. The refinance has been a slow process and earlier the borrower reported that the "lender has been dragging their feet" and that they are waiting for one final document to get a commitment and provide an estimated payoff date.

IRM's fund administrator reports that the borrower is two months behind in the interest payments – likely because the borrower thought the loan would be repaid by now.

IRM has notified the borrower of the late payments and expects to receive them soon. IRM believes that the borrower will not be able to complete the refinance by the extended maturity date of September 1, 2019 and is prepared to enter discussions with the borrower for the remaining three months of the extension provided for in the loan agreement (the extension option was for six months – the borrower has taken up three months), but not before all loan payments are current.  If the borrower does not bring the loan current or there is no solid movement on the refinance by the maturity date, IRM will begin to pursue the remedies available under the loan documents. IRM will update investors as we achieve milestones in the process to repay this loan.

[andyo]

I received a similar notification of the 12 Inner Loop Townhomes investment in Houston - no real result but at least adult communication.

[princyraj]

Cambridge Courtyard Apartments:

Anyone else on this deal. They sent a notification recently that the property was sold and we will get our principal back however the return rate will be much lower than the original "promised" rate. I was reading through the notification and found a discrepancy with my dashboard.  The notification states:

Date 
Received/Paid by IRM    Corresponding Period End     Activity Type            Amount
06/29/17                               06/29/17                             Invested Capital      ($2,250,000)
01/23/18                                12/31/17                                Distribution                 $34,500
04/24/18                                03/31/18                                 Distribution                 $34,500
10/05/18                                09/30/18                                 Distribution                  $69,000
01/04/18                                12/31/18                                  Distribution                 $34,500
06/10/19                                 06/30/19                                 Distribution                 $47,968
06/10/19                                  06/30/19                           Return of Capital              $22,032
07/25/19                                  07/25/19                           Return of Capital          $2,227,968


However, I don't see the distribution or return of capital transactions for 06/10/19 in the dashboard or in my bank account. Anyone else on this deal check whether they received the payments for 06/10/19.

-Thanks

[1UnknownSubject]

Cambridge Courtyard Apartments:

Anyone else on this deal. They sent a notification recently that the property was sold and we will get our principal back however the return rate will be much lower than the original "promised" rate. I was reading through the notification and found a discrepancy with my dashboard.  The notification states:

Date 
Received/Paid by IRM    Corresponding Period End     Activity Type            Amount
06/29/17                               06/29/17                             Invested Capital      ($2,250,000)
01/23/18                                12/31/17                                Distribution                 $34,500
04/24/18                                03/31/18                                 Distribution                 $34,500
10/05/18                                09/30/18                                 Distribution                  $69,000
01/04/18                                12/31/18                                  Distribution                 $34,500
06/10/19                                 06/30/19                                 Distribution                 $47,968
06/10/19                                  06/30/19                           Return of Capital              $22,032
07/25/19                                  07/25/19                           Return of Capital          $2,227,968


However, I don't see the distribution or return of capital transactions for 06/10/19 in the dashboard or in my bank account. Anyone else on this deal check whether they received the payments for 06/10/19.

-Thanks

I am in this investment and did not receive a distribution on 6/10 either. Good catch.

[groovydude]

   
292 Corning Drive...a debt deal.   Got my principle payment today and it resulted in 25% loss.    I can't believe the new management decided to sell it back to the original borrower at 75% of the orignal loan value.   This basically means..

original borrower don't pay his/her payments
drag it on...
and now buy it back at 75%... 

If he/she could buy it back at 75%, whey can't they pay regular payments...    This is total BS.   

Dwengca - I agreee this stinks. I'm not in this deal but I feel your pain. It's possible of course that the borrower borrowed the money from someone else to buy back his original loan. Who wold lend that person money is beyond me, but it's possible. I think IRM is trying to get these things off the books quickly. Perhaps not "as quickly as possible," but quickly. Hence taking the 25% discount, as opposed to a long slug through a foreclosure mud pit.

I think we're all stuck going along for the ride with the debt deals like this. I've got a few and my fingers are crossed. In one, IRM has already warned of a total write-off, so a 25% loss is better than 100%.

[cfojim]

I see a notification that now the RS188 K-1 is being corrected to reflect the distribution (presumably, instead of the erroneous long term capital loss).  Hopefully, the missing 2018 income will also be reflected in block 1 (or at least somewhere).

Received RS190 K-1 (version #4) on 8/5/19.  It is still missing 2018 interest income in block 5, which is where "cash yields" were reported in the previous 2 years.

RS349 K-1 (version #2), received 7/15/19, is showing a rental loss in block 2 which is putting the capital account into a deficit and wiping out my total investment.  This is despite the sponsor's 2018 yearend report showing the capital balance had actually increased and their other generally upbeat reporting on performance.  Makes no sense whatsoever.