Ashcroft Capital - Multi Family Syndicator - Texas

41 Replies

Hello Fellow BPer's,
I'm looking for feedback and info on "Ashcroft Capital" out of Texas. I may invest in multi family syndication deals that they do in Texas. Any feedback would be appreciated. 

I'm a couple of investments in with Ashcroft, very early stage, so can't give you a full cycle recommendation. However, I can tell you that Joe Fairless (one of the principals) is one of nicest, most genuine people you will meet. On a personal level I 100% trust in the integrity of Joe. On an operational level I believe in their gameplan/strategy. They know their market extremely well and their past/proposed returns are solid. I've read through two of their PPMs and they are also solid. 

On the downside, they haven't been operators through a complete market cycle, so you might question their ability to handle adversity through a down market. I think they do a good job mitigating this risk, however, through conservative underwriting (cash flowing properties, value add upside), debt structure (long term agency debt) and heavy cash reserves. 

@Shane O'Donnell My feedback would be pretty much in line with what @Scott Skinger stated. In addition, Joe is a public figure. He has made a number of social media, newspapers and other appearances. Plus he runs his podcast, wrote a few books, and has a RE conference once a year. So there is a lot of information about Joe and Ashcroft out there. You can google him and see for yourself. 

If you'd like any additional details, feel free to PM. 

@Shane O'Donnell I do not have much left to say as  

@Alina Trigub and @Scott Skinger have already described about them and I have deals with Ashcroft Capital and I want to say something about their punctuality and communication @Joe Fairless does a great job communicating and they do what they say and respond very very quickly and they absolutely know what they are doing and know the market very well.

I have invested in two deals with them through on one of their partners. Still very early but have gotten direct deposit distributions after closing in time. However they are newer to the market compared to a 37th parallel or other older syndicator. Have anyone been with them for a deal that has already exited?

I have been an Ashcroft investor since 2016.  My cousin and I have invested in many of their subsequent deals to the tune of seven figures.  Both of us being from Jersey are quite skeptical.  Last year, we decided to visit all of our properties in the DFW area.  Joe arranged the logistics and we were able to meet with and interview all of the onsite managers and property managers.  We were also able to see renovations before, during and after.  In my opinion, the renovations are where they shine.  For roughly $5k/unit, they completely transform these apartments.  The PM company uses in house people for most of the renovations to control timelines and cost.  We even saw one property where they purchased granite slabs in bulk and fabricated them onsite to save money.  Ashcroft has PM and renovations down to a science.  We wrote a followup report for Joe with a few suggestions.  As a testament to his character, he followed up and implemented several of our suggestions.  

As far as returns, they have always hit or exceeded their pro-forma numbers. They recently sold my first investment which was slated to do 18-20% IRR. The annualized return ended up being 27%. Their projections are based on cash flow and do not take into account appreciation. Over the years, I have gotten to know Joe and his wife Colleen and they are both remarkable people. The opposite of Grant Cardone who is constantly posting pictures of his 10x jet. Joe drives a corolla. Happy to answer questions, just tag me.

Hi Ash.  I'm a potential new investor to Ashcroft through Dan Handford.   Have you or anyone on the site  worked with him?   I'm looking at a potential deal in Dallas/ Ft Worth area and wondering if you were also investing in this.   Your post is a strong testament to Ashcroft and I appreciate the information you and others have provided to potential investors.   It is not easy to perform due diligence at a distance at least not for me as my full time work keeps me very busy.   So again thanks for the work you have done to evaluate this company.

I've spoken to Joe several times at length regarding some very sophisticated real estate topics, not only a very knowledgeable guy but a really nice guy to boot. 

@Shane O'Donnell I know Joe and cannot speak highly enough about him and his operations.  I appreciate how he has created such a solid model at a large scale but is not flashy or boastful.  

@David Wall I also know Dan Handford.  Both he and Joe are top notch.  

Call anytime to discuss.  

Just following up on this thread to see if anyone could/wanted to provide an update on any of their dealings with Ashcroft/Joe?  I am interested in investing at some point with a syndicator and have heard nothing but good things about Joe.  

I’m in contact with a few syndicators. Ashcroft seems very aggressive in their deal making. I get emailed 3 new deals in the last 3 month. One in Plano, 1 in Jacksonville and 1 in Orlando. This while other syndicators have been very quiet. Obviously, we are late in the investment cycle so not sure what to make of it. Is Ashcroft overpaying for assets? Are they focused enough since they are juggling a lot of balls. They have been raising money and doing deals fairly recently so they never been through a down cycle. Anyone else with thoughts on Ashcroft?

@Shane O'Donnell , from what I know and heard these guys know their stuff and are very successful in the syndication space. @Joe Fairless is a thought leader in the industry and has an extensive track record of doing what he says he will do. 

Anyone invest with Mike Krieg of Steeplerock Partners?

I'm thinking of going into one of his syndication deals, but family is against it since there are no guarantees.

They want me to own something and have complete control over it.

Any thoughts?

Thank you.

Originally posted by @Alan Zee :

I’m in contact with a few syndicators. Ashcroft seems very aggressive in their deal making. I get emailed 3 new deals in the last 3 month. One in Plano, 1 in Jacksonville and 1 in Orlando. This while other syndicators have been very quiet. Obviously, we are late in the investment cycle so not sure what to make of it. Is Ashcroft overpaying for assets? Are they focused enough since they are juggling a lot of balls. They have been raising money and doing deals fairly recently so they never been through a down cycle. Anyone else with thoughts on Ashcroft? 

they have had a lot of deals lately. but if you notice, their estimated returns are lower on the newer deals, so it's not like they are assuming that things will still remain as hot as they have been in the past few years. the newest deal also has 2 different classes of investors, one for cash flow only and another that shares in the gains. is this approach better than the others that are slowing down their deal flow? remains to be seen...

disclaimer- I have not invested with Ashcroft, but I have a close friend that is invested in 2 syndications. I have read all materials and watched the webinars of each deal for the past 2-3 years.

Originally posted by @Shoshana Shulman :

Anyone invest with @Mike Krieg of Steeplerock Partners?

I'm thinking of going into one of his syndication deals, but family is against it since there are no guarantees.

They want me to own something and have complete control over it.

Any thoughts?

Thank you.

I know @Mike Krieg and he is a stand up guy. I would consider investing with his group.

Legally NO sponsor on the planet can give you a guarantee. Even returns you get on bonds are not guaranteed. 

Also, while control is nice even if you buy something and rent it out (as an example) you will never have 100% control.

Originally posted by @Omar Khan :
Originally posted by @Shoshana Shulman:

Anyone invest with @Mike Krieg of Steeplerock Partners?

I'm thinking of going into one of his syndication deals, but family is against it since there are no guarantees.

They want me to own something and have complete control over it.

Any thoughts?

Thank you.

I know @Mike Krieg and he is a stand up guy. I would consider investing with his group.

Legally NO sponsor on the planet can give you a guarantee. Even returns you get on bonds are not guaranteed. 

Also, while control is nice even if you buy something and rent it out (as an example) you will never have 100% control.

I agree with Omar. There is no such thing as a guarantee, and if someone claims to guarantee returns, run far away. However, investing passively with a reputable reputation and track record has inherently less risk than owning your own property, especially if you are investing long distance.

There are literally dozens of successful syndicators on BP alone that are actively doing deals. 

What are the other reasons your family wants you to buy your own property rather than investing in a syndication?

Thanks for your input Omar and Yonah. I don't think there are more reasons, other than that trust is an issue with people you don't know, and there have been syndications that keep investing in new investments, and the money is churned, but will it be there when it is time to exit? I think that about covers it.

Originally posted by @Shoshana Shulman :

Thanks for your input Omar and Yonah. I don't think there are more reasons, other than that trust is an issue with people you don't know, and there have been syndications that keep investing in new investments, and the money is churned, but will it be there when it is time to exit? I think that about covers it.

I guess the best solution is to get to know them :)

It's true that you invest with people you know, like, and trust...I can't imagine investing with someone I don't know, let alone like or trust.

What do you mean that the syndicators are churning the money? Those that are investing in new investments are from new money. There are ponzi schemes out there, but an asset is an asset.

@Shane O'Donnell

I invested in one of their early deals. So far so good and Joe has always been very responsive. Updates also have come on time like clockwork. I think they are a well oiled machine on the IR and capital raising side. With that being said they are doing more and more deals and cap rates on the purchase side keep going down. However you are the investor so you need to decide if the returns are worth the risk on the offering in terms of the prices you are buying them at. Like in any market investors will disagree on if the pricing is fair.