Rental Property Investor · Charlotte, NC · Member since 2016 · 31 posts · 12 votes
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.
Full time investor · Cincinnati, OH · Member since 2013 · 405 posts · 312 votes
8y
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.
Rental Property Investor · San Francisco Bay Area · Member since 2018 · 87 posts · 87 votes
6y
I'm in 5 syndication deals so far, but just 1 with Ashcroft. I agree they are very responsive and communicative - the only downside so far is that they don't have an investor portal. So there's no place to go see your investments with them, which is odd because they're pretty big
Specialist · Tampa, FL · Member since 2012 · 933 posts · 492 votes
6y
Hi @Shane O'Donnell! I've heard great things about them although I haven't placed any capital with them. I'll connect you with someone who has, maybe he can answer your questions. Send me an inbox message.
@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.
Not flashy or boastful?
Really? "The Best Damn ....... ....... !" Ermm, okay.
Realtor · Newberg Oregon · Member since 2017 · 41 posts · 32 votes
6y
I've done two deals with him and up until last month have been happy with the results. My only disappointment is his team.
So far I've not received my last two months distributions. His team says they ACH transferred it to my account, My bank never received the money, and the team is pushing the responsibility back on me to track down the money.
So now I'm spending my Friday night on BP trying to figure out arbitration or what ever is the next step to get my monthly distributions.
If the tables were turned and he never received money that I wired, I'm quite certain he would not be the one responsible...
Would love to hear if anyone else has had similar issues...
Investor · Norman, OK · Member since 2017 · 75 posts · 53 votes
6y
@Shane O'Donnell - I am in 8 of Joe's deals and they are all performing very well. Speaking only to the deals I am in, the cash flow has been strong and consistent, 3 or 4 have refi'd in the first 2-3 years of the deal, it has been very common to receive an additional distribution at the 12 month anniversary of a deal based on NOI over and above the pref, communication is excellent and Joe is a great guy.
Recently, he has changed his deal structure, offering either 10% flat (no upside) or a 7% pref with upside. It is interesting to thin through this structure (which has become more common with other sponsors as well). The deal would have to perform very very poorly for the 10%'ers not to get their full 10% as they are first in line. That being said, if a deal becomes a homerun, the 7%'res have all of the upside.
I'm looking at a deal with Ashcroft. They seem to be going just as strong now. I've not invested with them before, the only thing I find interesting about their process is that they don't counter sign their documents until after wiring the funds. That's something I was always told needs to complete prior to funds transfer and other deals we've done it was always prior to funding. Is that common practice?
Rental Property Investor · Atlanta, GA · Member since 2018 · 65 posts · 29 votes
6y
@Vera S.I’m in four deals with Ashcroft at this moment & join the last investment they are working on also! Joe is a great person to speak and work with, but he also has a great team.
I love the communication and transparency with investors.
I'm looking at a deal with Ashcroft. They seem to be going just as strong now. I've not invested with them before, the only thing I find interesting about their process is that they don't counter sign their documents until after wiring the funds. That's something I was always told needs to complete prior to funds transfer and other deals we've done it was always prior to funding. Is that common practice?
I don't countersign my deals until after the deal is closed because the syndication is not technically completed until we break impound on the those funds on closing day. Prior to that happening the deal could fall through and the money would just be sent back.
Rental Property Investor · Boston, MA · Member since 2019 · 6 posts · 0 votes
5y
I have been with Joe in 3 deals and so far been a happy camper. Been investing with other syndicators as well. In comparison only drawback I have is his team. Sometime communication does not happen in timely manner so you have to reach out to them for instance if the funds that you wired reached or not.. But other than that been happy with their analyses of overall property and plans moving forward, timely monthly distributions. B.t.w investor portal sometimes show incorrect info as well. I think they are just trying to set this up so I won't consider this as a con at the moment.
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.
Hey Scott, how is your experience with Ashcroft so far? I am thinking to invest with them. Thx
Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
4y
When evaluating passive investing opportunities, evaluate the sponsor FIRST and the deal second. Be sure to have clear, well defined goals for what you want to accomplish by investing passively in real estate. That being said, I have not invested personally with Ashcroft but they have an expert track record and are comprised of experienced team members.