Ashcroft Capital - terrible management

[Ben D.]

I invested with Ashcroft Capital in their Ashcroft Value Add Fund 1 and have been appalled by the poor decision-making from Joe Fairless and Frank Roessler.  

They have a proven inability to manage interest rate risk and underwrite deals effectively in a changing environment.  They aggressively take on large risks with minimal foresight.  I currently expect a substantial loss on the funds I invested, and LPs in other Ashcroft deals have already experienced a 100% loss on their investment.  It would be shocking if they are able to continue to raise funds from investors moving forward after these significant failures.  

On the flip side, I also invested in a syndicated deal with Brian Burke and Praxis Capital around the same time, and I could not be more impressed with them.  They are seasoned and experienced, and their communication is excellent and professional.  You can tell that they've been through both bull markets and down markets, and they understand how to manage risk.   I can sleep well knowing that I have money invested with Praxis.  

The purpose of my post is:  I know there are many of us out there who work very hard for our money and would like to invest it effectively, so I wanted to share my experience.  Hopefully others can avoid investing with such a poorly-managed syndication.  

It's challenging times like these in multi-family that separate the wheat from the chaff.

The wheat = Brian Burke and Praxis Capital
The chaff = Frank Roessler, Joe Fairless, and Ashcroft Capital