Author Topic: Thoughts On RealtyShares Closing Its Doors To New Investors  (Read 223222 times)

Hindsight2020

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #680 on: June 06, 2019, 05:04:03 AM »
Did anyone get their unused rehab reserve money back from FG? It's been a couple of weeks and I have not heard anything on the Taylor, MI deal. Also no word on the AFC in West Islip and Captain D in Shelbyville.

Nothing returned yet on the Church's Chicken in Winston Salem NC.  I sent an email two days ago inquiring as to why the unused money hasn't been returned yet, but haven't heard anything back yet...

It is also past the amount of time that was given for the appraisal of the property.  I asked for an update on that as well.  Unfortunately, I don't have much hope that I'll hear back from RS with anything but a copy/paste boilerplate response...

I was told that the appraisals on the FG loans are almost done. I assume we'll get construction reserve money back then. The same person at RS is still working on these workouts. I don't know the extent to which his resources have been enhanced by the JV.

ramesh

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #681 on: June 06, 2019, 05:24:13 AM »
Dear RealtyShares Investor,

What Happened
On May 15, a car belonging to a member of the RealtyShares team was burglarized.   Unfortunately, a laptop was stolen in the incident.  The laptop contained files which may have included some of your personal information.  There is no evidence to suggest that there has been any attempt to access or misuse any of the information located on that laptop, nor do we have any indication that the theft was aimed at anything other than the equipment. We have filed a police report on the break-in and theft, but to date, the laptop has not been recovered.
Out of an abundance of caution, RealtyShares has opted to notify you, and alert you to actions you can take. 

What Information Was Involved
Certain laptop files contained names, email addresses, and banking information for certain RealtyShares investors. To our knowledge, the files did not include any personal password information for your RealtyShares account and did not include any Social Security numbers.



I didn't receive this notification. Did anyone else on here receive it?

I received it as well. 

ramesh

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #682 on: June 06, 2019, 05:34:40 AM »
Did anyone get their unused rehab reserve money back from FG? It's been a couple of weeks and I have not heard anything on the Taylor, MI deal. Also no word on the AFC in West Islip and Captain D in Shelbyville.

Nothing returned yet on the Church's Chicken in Winston Salem NC.  I sent an email two days ago inquiring as to why the unused money hasn't been returned yet, but haven't heard anything back yet...

It is also past the amount of time that was given for the appraisal of the property.  I asked for an update on that as well.  Unfortunately, I don't have much hope that I'll hear back from RS with anything but a copy/paste boilerplate response...

I haven’t received my reserve disbursement for Church’s@Colorado.  Their May 15 notification said that the amount would be deposited in two weeks.  I wrote asking about the delay and received a response devoid of any information.

In response to queries about several other equity deals that haven’t filed even a Q1 2019 report, I got the following reply from someone at IIRR

We are in the process of revamping, organizing our departments and working hard on getting the updates from the sponsors, this including distributions.

John_PVF

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #683 on: June 06, 2019, 06:31:53 AM »
Dear RealtyShares Investor,

What Happened
On May 15, a car belonging to a member of the RealtyShares team was burglarized.   Unfortunately, a laptop was stolen in the incident.  The laptop contained files which may have included some of your personal information.  There is no evidence to suggest that there has been any attempt to access or misuse any of the information located on that laptop, nor do we have any indication that the theft was aimed at anything other than the equipment. We have filed a police report on the break-in and theft, but to date, the laptop has not been recovered.
Out of an abundance of caution, RealtyShares has opted to notify you, and alert you to actions you can take. 

What Information Was Involved
Certain laptop files contained names, email addresses, and banking information for certain RealtyShares investors. To our knowledge, the files did not include any personal password information for your RealtyShares account and did not include any Social Security numbers.

What We Are Doing
Within hours of the report of the late night incident, we began investigating and reset all passwords for the affected team member.  We are working to implement additional safeguards to protect investor data from theft or similar criminal activity in the future, including ensuring that all laptops and other computers used by RealtyShares staff are properly secured and encrypted.

What You Can Do
We have no evidence that your information has actually been accessed, or that there have been any attempts to misuse it.  However, we encourage you to be vigilant in the review of your financial account statements and to review the “Information about Identity Theft Protection” provided below.

Questions?
If you have questions, please contact data@realtyshares.com.

We apologize for any inconvenience.

The RealtyShares team


What kind of stupid ass losers are handling our confidential information? I have no faith in these guys

I didn't receive this notification. Did anyone else on here receive it?

I also received it. 

dwengca

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #684 on: June 06, 2019, 11:06:19 AM »
Dear RealtyShares Investor,

What Happened
On May 15, a car belonging to a member of the RealtyShares team was burglarized.   Unfortunately, a laptop was stolen in the incident.  The laptop contained files which may have included some of your personal information.  There is no evidence to suggest that there has been any attempt to access or misuse any of the information located on that laptop, nor do we have any indication that the theft was aimed at anything other than the equipment. We have filed a police report on the break-in and theft, but to date, the laptop has not been recovered.
Out of an abundance of caution, RealtyShares has opted to notify you, and alert you to actions you can take. 

What Information Was Involved
Certain laptop files contained names, email addresses, and banking information for certain RealtyShares investors. To our knowledge, the files did not include any personal password information for your RealtyShares account and did not include any Social Security numbers.

What We Are Doing
Within hours of the report of the late night incident, we began investigating and reset all passwords for the affected team member.  We are working to implement additional safeguards to protect investor data from theft or similar criminal activity in the future, including ensuring that all laptops and other computers used by RealtyShares staff are properly secured and encrypted.

What You Can Do
We have no evidence that your information has actually been accessed, or that there have been any attempts to misuse it.  However, we encourage you to be vigilant in the review of your financial account statements and to review the “Information about Identity Theft Protection” provided below.

Questions?
If you have questions, please contact data@realtyshares.com.

We apologize for any inconvenience.

The RealtyShares team


What kind of stupid ass losers are handling our confidential information? I have no faith in these guys

I'm in the IT field for over 20 years, this type of things tells me that RS are being ran by bunch of clueless morons.   Not only that, they are probably breaking all sort of security compliance. 

GADAWG

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #685 on: June 06, 2019, 03:57:13 PM »
Regarding many of the FG deals - After multiple emails inquiring about the fact that on May 15th, updates were published advising that disbursements would be forthcoming in 2 weeks, and now 3 weeks later that still has not occurred, nor has any updates been provided, I was advised my matter has been "escalated" and I scheduled a call with a customer service rep for tomorrow, June 7th.  Mind you, this has come after multiple emails to support, to the CEO and one to the CEO of RREEF Holdings (that was in response to his email yesterday basically saying they are taking care of RS clients and come visit their site and consider their investment opportunities - to which I advised no way was that going to happen, they are have not proven themselves to be trustworthy and to do what they say they are going to do).   I will update tomorrow if I get any worthwhile news from the customer service rep.

Your inquiry to RealtyShares has been escalated. We will now try to set up a time for you to speak with a Customer Service representative by phone to try and assist you further.

Please follow the link below to set up a time for this call. All times on the calendar are US East Coast times. You will need to provide a phone number for us to reach you on.

Please be ready to provide personal information to verify your identity. Our representatives can not provide information about your account if you can not properly verify your identity.

Sdb

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #686 on: June 06, 2019, 05:08:32 PM »
Thanks, look forward to the response. I just can’t understand why they would take an individual call vs an update to all investors. It goes back to what most all on this forum who have a stake in FG have always asked... at this point just give us a transparent update on the current status of these deals. One off calls with individual investors makes no sense.

Hindsight2020

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #687 on: June 07, 2019, 04:25:10 AM »
They operate without a sense of urgency. Things progress at a snail's pace. FG obviously can't be trusted, yet RS has been duped into delay after delay by ridiculous excuses from FG. We were told on 3/21 the papers for the negotiated settlement of the Detroit Dog Haus loan had been signed and notarized and they hoped to close the following week. Well, three weeks go by and they told us 4/15 that the closing was delayed 30 days because it was being rolled up as part of a package of FG loans that was awaiting equity from South America. Dead silence since then. It's been 25 days since the JV announcement and, if anything, my distributions seem to be slowing again. I don't get it.

GADAWG

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #688 on: June 07, 2019, 07:44:52 AM »
Update on call.  I spoke with Eric Sullivan, the new Director of Customer Service.  Here is what I learned:
 1.  He stated they really just took over this Monday - despite the press release that came out in May
2.  They have 5 asset managers, and are expecting them to do their jobs, or they will be replaced (some have already been)
3.  He acknowledged that communication has been unacceptable, and they are working to change that.  That said, they still don't have direct phone numbers to be contacted, but he said they plan to do so in the future.  For the time being, I can contact him via requesting a meeting through his calendar and then he calls me.
4. Alexis, the current CEO of RS is leaving in 2 to 4 weeks, new CEO for IRM is Jeff Holtzman (sp?)
5.  Regarding FG - they have meeting with asset manager today.  He acknowledged that they did not live up to the commitment on the update promising disbursements within 2 weeks, but promised to provide me an update via email by COB today.  I stressed it should be simple - is the disbursement going to occur and when, and if not, why.
6.  I stated multiple times that much of the investor concerns could be alleviated by providing timely, clear and truthful updates and being reachable by investors.  He stated they have "hundreds of properties", and I corrected him to say it is more like 200, and with 5 asset managers, each then has a portfolio of 40 properties, of which many are long term and just require minimal updates if they are no unusual conditions.  He then agreed.
7.  He mentioned looking at investments with REEAR and intoo - and I told him no way, at this point they have not demonstrated they will do what they say, without even looking at how they find and vet investments. I advised the forums are also strongly advising people to not invest any more until we have time to really evaluate how they will operate.

I will provide another update once I get "promised" email on FG deals.



Dgilpin

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #689 on: June 07, 2019, 09:02:52 AM »
Thanks GADAWG,  super helpful.

GADAWG

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #690 on: June 08, 2019, 06:35:00 AM »
Here is the email update - no clear answer yet, but at least he did follow through and email me by COB yesterday.

I am currently having ongoing conversations with our administrator in regards to your Franchise Growth distributions from construction reserves. From my understanding they need a little bit more time to look into the matter.

I understand the frustration of the failed promises of a 2 week window in receiving these construction reserves. I would like to personally apologize for the miscommunication.

I am expecting our administrator to submit a distribution for approval. Once approved the funds then get deployed to investors.

I will contact you on Monday with an update.


andyo

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #691 on: June 09, 2019, 06:24:32 AM »
Does anyone know if there are plans to migrate our RealtyShares investments to the iintoo platform?

John_PVF

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #692 on: June 10, 2019, 05:52:02 AM »
Thank you GADAWG.  Appreciate the update.  Hopefully some additional communication will be coming.  I'm seeing little to no activity on distributions and have only received one K-1, despite indications that they would be pushing all of them out this month. 

GADAWG

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #693 on: June 10, 2019, 06:41:28 PM »
No update received today.  Will post when/if I receive one as it did not come today as promised.

GADAWG

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #694 on: June 11, 2019, 07:44:55 AM »
Update this morning on the FG disbursements from unused construction funds (from the updates posted on May 15th)

We are expecting to deploy distributions from Franchise Growth investments this week.

PhillyRoost

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #695 on: June 11, 2019, 08:40:21 AM »
New to this forum but shocked at how many FG construction loans were made & funded despite no actual construction taking place-- just "permitting" completed over 2 years. If all the FG deal are similar to the Deland one I invested in, it sounds like FG took RS and us investors on a traditional Ponzi ride with this one... I have 7 outstanding RS investments & not hopeful.

Does anyone know how many properties & total loans were made to the FG fraudsters?  If anyone actually reaches an asset manager, here are some questions I've asked but haven't gotten any replies to:

(1) funding of 1/2 the loan without any construction hurdles satisfied.  I want to see the actual accounting for the drawdown on the construction loan.  I can't believe they funded $1,167,544: to $675,000 to acquire the property & close to $500,000 to get it to "almost permitted". 
(2) Franchisee/Leases - are these arms length leases or are these just the FG folks/friends faking agreements? Did RS fail to actually diligence the franchisee/lessee?
    -Who is Shawn Eby/Goalz seby82009@gmail.com • 307-630-2277
    -Copy of the lease/franchisee agreement -- shouldn't there have been deposits etc for the lease?
(3) Guaranty - guaranty is coming from the "operator" but not the principals? What assets does he have?

Here's the May 15 update I received:
"We hired an appraiser and expect to receive the appraisal report in approximately two weeks. The value determined by the appraisal will be helpful in our settlement negotiations with the borrower. The loan was structured to hold back funds for future costs and obligations. The original loan was $2,006,000 but we held back funds to support construction activities and interest payments. The borrower reports that permitting is 80% complete but the construction has not started.
There is $888,456 remaining in the construction reserve. Since the loan is in default, we will distribute this reserve balance less $50,000 to investors within two weeks. The $50,000 held back will be reserved to cover the cost of the appraisal, the suit under the guaranty, legal fees, and the cost of foreclosure (if needed). Once the construction reserve is distributed (less the hold-back) the loan balance will be $1,167,544. All except $14 of the initial interest reserve of $126,392 was used to pay interest and has been distributed to investors (net of RS fees).
We trust this information is helpful and will provide additional updates as we move through this process."

mspringer

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #696 on: June 11, 2019, 11:06:52 AM »
On a positive note (knocking on wood), I did just receive payout for the La Bella Palms investment. 

groovydude

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #697 on: June 11, 2019, 11:40:33 AM »
My opinion today is that things have drastically improved with the responsiveness of RS. I don't like the communication pipeline, but at least I'm finally getting answers. One of my problematic investments is 1026 Corsica Drive, and the latest notification posted a few days ago suggests a professional and appropriate course of action has been taken by RS. It's a shame it had to take this long, but I'm glad to be here finally. Here's the post for anyone interested:

"This loan matured in January 2019 and we began discussions with the borrower to repay the loan or extend the maturity date. Later, the borrower fell behind on the interest payments. Simultaneously the borrower was working to refinance his 1st loan to reduce his cost of capital and provide a time cushion to sell the property. One of the terms that the 1st lender required was that our 2nd position loan has the same termination date as the new 1st loan. We came to terms on an extension of the maturity date to June 2020, coterminous with the new 1st loan maturity and required a top-up of the interest reserve in order to provide funds to cover past due interest payments. Recently, the borrower ran into underwriting issues with the new 1st loan and has been working the past several weeks to resolve the lender's concerns but is not quite there and has not been able to provide an estimated funding date. We have proceeded cautiously with this borrower and agreed to work with him because the next primary remedy is to foreclosure.  If we were to foreclose, the 1st lender would have payment priority and it is not uncommon for the 2nd lender to end up unpaid. We will continue to work closely with the borrower and the 1st lender and provide ongoing updates."

I think the FG investments are a mess and I feel for all the affected investors. Hang in there!

dwengca

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #698 on: June 11, 2019, 06:26:07 PM »
Received full payout on The Realm Multifamily in Fort Worth, Fort Worth, TX today.   Actually ended up getting a good returned on this one.  Invested since 8/2016, 15k invested and received 21.5k back.

Wish all of them or if not most would end up with similar results.  I still have 150k+ in RS.

mspringer

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #699 on: June 12, 2019, 05:10:39 AM »
Received full payout on The Realm Multifamily in Fort Worth, Fort Worth, TX today.   Actually ended up getting a good returned on this one.  Invested since 8/2016, 15k invested and received 21.5k back.

Wish all of them or if not most would end up with similar results.  I still have 150k+ in RS.

La Bella Palms was about 23% total over 2 years.  I'm certainly not going to look a gift horse in the mouth at this point and very happy with at least my money back, but the investment sold for more than anticipated and thus I expected a bit more.  Did you receive any kind of breakdown of the actual waterfall of payback on The Realm?  I know what is in the initial offering but just wondering if RS should also give us the actual once completed.

I am in an FG deal, so yes, I am very happy to have some money back on other deals to help make up for that likely loss.