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Allover, what are your lessons?
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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 !!! 
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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.

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So - 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?
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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!

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Just got info on Franchise Growth and while that was a pretty deep cut, at least there is finally some closure.
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Haven'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?
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Well seems high compared to the $0 I pay at my broker.
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Automobiles / Broke the 10% car buying rule
« Last post by inoffensiveusername1 on July 25, 2021, 11:16:00 AM »
I broke the 10% rule for car buying, and realize that FS was right.

I make about 100k so according to the 10% income rule, I should have bought a ~10k car. I justified it mentally because including stock gains I made ~200k in 2020. This was of course dumb because 2020 was a great year for stocks (post-crash). I was saving up for a house and had cash on the sidelines in March which I piled into the market in April after the Fed announced their emergency measures. But not every year is a bull market.

I set sights on a Toyota Corolla. Stupidly I didn't settle for the basic L trim level and got an SE which pushed my costs up by several thousand. For some reason I wanted that extra 30 horsepower. I thought, what if I need that extra HP to maneuver on the highway? But, based on my driving needs I don't take the highway much anyways. I don't even need that HP to get through the city.

When I went to my credit union to pick up the check, they congratulated me and that boosted my ego. But in retrospect, of course they are happy, they're making money off of me. Always keep your ego in check. At least I got a decent rate, 1.79%.

With the virus situation, I tried to complete the purchase online, but the dealer's website glitched out and it wouldn't let me. So I had to go into the dealership to seal the deal. Then they tried to charge me more than the quote they gave me online so I had to haggle. Then they came back with a price lower than the online quote. Whatever.

So with a 3-year loan and no money down (and GAP insurance), my payments are about $660/month. I'm feeling the pain.

The silver lining is I got the car earlier this year, before car prices went crazy. I had gone on the car dealer subreddit and saw that car salesmen were literally crying because they couldn't sell any cars. I took that as a bottom signal. I predicted inflation would come from all the loose money policies. So there's that.

With the car bubble (which appears to be cooling off now), I could probably even have sold my car for more than I bought it for. Except I already scraped the car while parking it in the garage. I got quoted $1300 to fix the paint. At this point I'm just going to live with it.

I have to drive the car every two weeks just so the battery doesn't die. I don't have anywhere to go to, so lately I just loop around the neighborhood for 20 minutes. At least I'm getting practice driving.

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Taxes / Re: Tax Planning
« Last post by Irish247 on July 08, 2021, 04:05:42 AM »
I started using a CPA from my first years of making money. Granted it was the family CPA, but still a benefit. I have since found that doing taxes on my own on the side in draft format was the most effective for me to learn the best ways. I did this for the last 10-12 years. However, more recently, I've made some large financial moves and have come into some serious unicorn stocks and windfalls. As a result I'm starting to lean toward outside sourcing. Our family CPA has since retired, and I have elected not to use another, since I learned how to do it all effectively myself.

My friend who is in a similar boat, has just crossed the $24M net worth range, and he too is starting to outsource for the first time. He however works in numerous states, and has property holdings under various companies so it make sense from a time perspective to have someone else do it.

To answer your specific question though, I think it wall depends on how complicated your taxes are. W2 and small property holdings - do it yourself. Anything beyond that, it might be worth the second look.

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