Anyone have experience with RREAF Holdings?

Question

Anyone done business with RREAF Holdings? They are a private equity firm putting together syndication deals. Just trying to find some history of what they’ve done and how they’ve performed from an unbiased third party. Thanks!

James Melillo · Answer

I wanted to share my experience with REAF in Dallas.  I have invested with 8 different syndicators in about 23 deals in my life, mostly in real estate, 2 in oil and gas.    I have averaged 0 +18% pre-tax returns per year from all of them over the last 20 years. Out of the 27 deals I have invested in over the 20 years with the 8 syndicators, I have had one go bankrupt, 2 get partial returns, and 19 make money.  Of the 23 deals I have done 17 are with RREAF.  With REEAF, I had one deal break even in the Southeast (Apts.), 7 home runs over 20% per year return, and I have 9 deals that are working.  What I mean by working is that these deals are all moving forward.  What I like about them is that they are all in some stage of getting better.  Now, anyone who has invested in Real Estate in the last 4 years has seen so many deals go south, disappear, end up in receivership, or has gotten paid out a small portion of their money.  I have, as I mentioned above, had this with other syndicators. This is just not what has happened at RREAF.  If anything, the deals are all in good shape.  Going forward, they are getting better because so many companies cratered.  Look, at the end of the day, I have invested about 30% of my net worth with the company and have felt comfortable with almost everything they have done for the investors.  They have done about $4 billion and are still growing. Your call but this is my 8+ year feedback. - JIm

RREAF has been the best.

I have invested in a total of 15 deals, 4 paid out and 11 still active

Garrett Fisher · Answer

Hi Naomi,

While we appreciate the feedback, positive or negative, we do not show you in our records as having ever been invested with us. Is it possible you have us confused with another company? Your claims do not line up with our track record nor our business practices. To protect the confidentiality of investor information we do not discuss personal investments publicly but ask that you reach out to our Investor Relations team to discuss this further.

Best,

Robert Burnett · Answer

Having some issues myself with a couple others. Have you had any distributions from Beachside? And were you an original investor in it? So if the 3 only one has distributed any payouts?

Sean Barber · Answer

I’m in transcoastal. They have now missed a distribution and had one far below projections. However, it’s a difficult economic time and I still believe in the portfolio. We’ll see how they do as operators. TBD…

Dave Lundvall · Answer

@Suresh Chinta what are you in? I'm in Transcoastal, which seems to have the best interest rate locked in. I'm also in Sunbelt 12 which hasn't distributed in over a year, and also Beachside which has never distributed.

Suresh Chinta · Answer

I have invested in several (3 to be precise), except a single deal which they screwed up returns after nearly three years of mis-management. None of the two other deals performed anywhere near projections. I have very little hope on what principal will be paid back if that day ever comes!

Dave Lundvall · Answer

@Sean Barber which investment do you have? I have Sunbelt 12 and Transcoastal.