Author Topic: Thoughts On RealtyShares Closing Its Doors To New Investors  (Read 449637 times)

babets

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #1320 on: July 31, 2020, 02:34:35 PM »
Latest update on Franchise Growth:

"
The borrower (Franchise Growth) has elected to exercise their final extension of 30 days as per the agreement. The borrower has satisfied the required $35,000 non-refundable deposit to extend. The final extension expires on 8/29/2020. IRM does not plan to accept any additional extensions.


IRM has asked Franchise Growth for a status update of the asset sales. To date, no such update has been received. We estimate the chances of a sale at 50/50 with the other option still being foreclosure on all remaining assets.
"

Looks like we are on the final 30 day countdown. They have now put up $195,000 in non-refundable deposits.

It's going to be interesting to see if they can get a sale agreement closed out in the next 30 days. The cost of borrowing money is extremely cheap right now, and there's a lot of capital sloshing around... but I personally don't have much insight as to how fast food commercial real estate is doing right now. Not encouraging, although not surprising, they wouldn't give IRM any updates.

While I hope to lose as little (or none) as possible on my FS deals, I'm anxious for the saga with them to finally be over with. Even if foreclosure is in the cards, I'll be glad to not be waiting on updates from the FS folks.

Fingers crossed.


i also agree that a 195K deposit is something. i wonder what eventually happens to that deposit if sale dont happen. any idea? bcs if they lose it i would imagine the sale is a better alternative...

stingray

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Re: Thoughts On RealtyShares Closing Its Doors To New Investors
« Reply #1321 on: August 01, 2020, 05:51:13 AM »
Hi @babets, regarding the $195 K deposit from Franchise Growth, I think it is likely that RS will first recoup what it has spent on lawyers and then take any management fees that have accrued to date.  From whatever remains, it may hold a portion for future legal fees and distribute it to investors.  Unfortunately, I doubt that investors will see much of that $195 K.  Best of luck to you with this and all of your investments.