I am considering investing in a Multifamily syndication deal with Ashcroft Capital. Outside of their investor margins being a little thin, does anyone have any feedback they provide from personal experience or research they performed on Ashcroft?
I have invested with Ashcroft with mixed results. The lead sponsor is super important and that varies from deal to deal. So you will want to make sure to vet that. Also Ashcroft's split isn't as generous as other syndicators. But they do get deals in a great locations.
If you want to discuss more specifics, feel free to ping me.
Carmen Dettloff
@Derek Bennetsen. I am investing in my third deal with them. I do t have long term experience with them yet but They have a good track record and seem to really have it together from my experience.
How is your experience with Ashcroft capital so far especially with the start on the pandemic
I have invested with Ashcroft with mixed results. The lead sponsor is super important and that varies from deal to deal. So you will want to make sure to vet that. Also Ashcroft's split isn't as generous as other syndicators. But they do get deals in a great locations.
If you want to discuss more specifics, feel free to ping me.
Carmen Dettloff
Hey Carmen, how is your experience with Ashcroft? I am thinking to invest with them
@Ayman Omara no real issues during the pandemic for the 3 deals I'm in. Mostly they buy solid B class apartments and so less covid impacts than class C.
I personally have not invested with Ashcroft, so what I write below isn't a reflective upon them, but GP's in general:
Make sure you're asking the right questions and looking at a sponsors underwriting carefully. Are they really able to achieve the projections or will they likely fall short? Right now, most cities are seeing a decline in rent prices and in occupancy and that trend is likely to continue. Is the sponsor reflecting that?
I wrote and article on how to find good deals as an LP that may help:
This post caught my attention because it's so interesting what time does. A year ago, at least in your market, you could say rents were going down. I have heard a lot of cities like Phoenix, Vegas, and Sacramento have had rents go up 25% just in the last year! So, by that measure, their projections might have been off... but just they probably didn't assume a 25% increase. Lol!
I have since looked at the underwriting on the two assets they will place or have placed in the Fund. They seem fine. I don't think Ashcroft has any issues with generally how they underwrite. I have gotten a number of mistakes in the distributions, but they always seem to correct them and say that their new system will obviate that kind of thing going forward. I think the only two issues that I think about as I contemplate signing on are the speed with which they have been growing, and the fact that they are just now moving to being vertically integrated -- their property management and renovation teams are all in-house now -- not 3rd party like they used to be. They also shuffled their fees around to reflect this. It's probably a good thing, but as you can see, the theme here is growth management -- can they keep growing successfully, or will they encounter sheering forces that cause a problem? I think the odds are pretty good that they bring all hands on deck and make the step up to the big time in 2021-22.
Your responses on Ashcroft Capital (2-3 years ago) was very informative. Now in mid 2023, any new insights about this company? I appreciate your feedback.
I am considering investing in a Multifamily syndication deal with Ashcroft Capital. Outside of their investor margins being a little thin, does anyone have any feedback they provide from personal experience or research they performed on Ashcroft?
i actually just spoke with them and we discussed distribution track record from both Fund 1 & 2 and they had mentioned to me that they had paused distributions due to the floating rate structure that they used in both funds. When i went further in comparing Funds 1,2, & 3, i wanted to confirm the total # of properties in each fund, which went 1 (~8), 2 (~6), 3 ( 3). When i asked about the property concentration in Fund 3 versus the other two funds they mentioned that it was due to the low market supply for what they were looking for. For what i was looking for, i am going to move them a "hold" for now. Best of luck to you in your decision making.
Has anyone invested with Ashcroft Capital this calendar year? Fund 3? I did and need a copy of the Operating Agreement and they are taking forever to give it to me. I'm a little worried about this investment. Anyone have any bad experiences with them? Good?
Has anyone invested with Ashcroft Capital this calendar year? Fund 3? I did and need a copy of the Operating Agreement and they are taking forever to give it to me. I'm a little worried about this investment. Anyone have any bad experiences with them? Good?
I have not. But I would check the SEC fillings online. It should all be published / public information.
@Benjamin E Salas, to be clear, neither Sue's specific agreement, nor the fund's larger agreements are not publicly available.
@Sue Forwith, the above comment is inaccurate. Not because the agreements should be available and are not, but all syndications are exempt offerings under various SEC rules. Specifically, rule 506(c) allows for any securities offering to be exempt from public filings, other than the actual registration handled under Form D, which is available through an SEC search.
They do buy newer assets, which in this part of the market cycle, is a good thing. I have not invested with them, but you can find tons of info on them online.
They have been investing since around 2016, and have focused on good markets.
@Sue Forwith
For all those reading I would never sign a subscription document without seeing a copy of the operating agreement. This should be provided upfront for you and your attorney to review
Chris, Yes, lesson learned. They did finally get me a copy. Had to be cleared through their counsel before they would provide. And just got a distribution so all going well now, but boy was I nervous. Hadn't read all the negative comments about capital calls until after invested.
Also, what big things are you looking at when you do review them, Chris. Thanks for any guidance.
Chris, Yes, lesson learned. They did finally get me a copy. Had to be cleared through their counsel before they would provide. And just got a distribution so all going well now, but boy was I nervous. Hadn't read all the negative comments about capital calls until after invested.
Also, what big things are you looking at when you do review them, Chris. Thanks for any guidance.
I always hand them to an attorney and ask "what should I be aware of in this agreement"
Typical things are: Who are the owners, who has management rights, what rights do we as an LP have, what documentation is listed or what activities should they be doing. Who has voting rights, how are capital calls done, where does the money flow.
I cannot believe they had to go through an attorney to provide this, we have done multiple syndications and have always included this in our package to investors.
DO NOT invest with Ashcroft Capital! I have invested over $2M with them and have been disappointed lately. Full of capital calls and paused distributions. But they are still out there raising more capital for new deals! Ridiculous! Again, Do NOT invest with Ashcroft or 99% of the syndications out there!
Keep your money and do direct investment where you have control!
I'm an investor in Fund 2. They just issued a 19% capital call. If everyone participates, the best case scenario is that they lose 75% of your investment. This is beyond disappointing. They over-paid for and over-levered the properties in Fund 2 not to mention not diversifying geographically. Stay away from Ashcroft.
I'm an investor in Fund 2. They just issued a 19% capital call. If everyone participates, the best case scenario is that they lose 75% of your investment. This is beyond disappointing. They over-paid for and over-levered the properties in Fund 2 not to mention not diversifying geographically. Stay away from Ashcroft.
David, So I understand this, lets say you invested $100k, now you have to put in another $19k and best case is you get $30k back.... If those numbers are accurate - why would one participate in the CC?
I'm an investor in Fund 2. They just issued a 19% capital call. If everyone participates, the best case scenario is that they lose 75% of your investment. This is beyond disappointing. They over-paid for and over-levered the properties in Fund 2 not to mention not diversifying geographically. Stay away from Ashcroft.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
I have trouble taking a strangers advice for directions to the place I am trying to get to, never mind investment options.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
If you invested $100k and then put $19k in for the capital call, you would potentially get your capital call back ($19K) plus 25% of the $100k so $25k.
So you're looking at either a $75k loss if you gamble the $19k, a $100k loss if you don't participate and are wiped out, or a $119k loss if you participate but are still wiped out. That's too big a gap for me; I'd have to just eat the current loss and move on. If you had better than house odds at being made whole, it might make sense but there's just no upside here. What a shame. I haven't reread the thread but I know I remember some people predicting the cap call on #1 would just be the beginning.
Edit: I went back and read the whole thread, which is not the big thread that's been going for a while. Wow. It looks to me like, prompted or not, a lot of cheerleaders showed up to encourage the OP to dive on in, the water is fine. I'd be interested in seeing how many of those posters are still around these days.
there is a fairly new website dedicated to LP reviews of operators - investclearly.com and I'd encourage those with good or bad experiences to share them so other in the investing community can benefit. https://investclearly.com/sponsors/ashcroft-capital
there is a fairly new website dedicated to LP reviews of operators - investclearly.com and I'd encourage those with good or bad experiences to share them so other in the investing community can benefit. https://investclearly.com/sponsors/ashcroft-capital
My personal experience is that I had high hopes and they talked a good game. On one of my deals, I'm seeing lower than hoped for occupancy and NOI, and distributions have been reduced by about 3/4ths. On the other, I believe distributions have stopped for Class B investors, but Class A investors are still receiving the agreed-upon amount. Overall I'm disappointed of course.
@Account Closed, that Herald Post article is a completely AI generated article.
There are some relatively strong AI websites now, with domains that look a lot like a law firm or legitimate new source. Typically, I have found that unless there is a plaintiff and defendent listed, a specific filing date and a jurisdiction listed, these types of things are false.
Oh, ok I hadn't considered that. So you are saying that Ashcroft Capital has not been served with a lawsuit by one or more disgruntled investors in the last say, three months. OK good to know, I was nervous there for a minute!
@Evan Polaski It's not just 1 article, if you search "Ashcroft capital lawsuit" there's pages of such articles, however what stood out to me was each of them had the same generic language except for 1 that gave a detailed timeline. I am planning to write to them and confirm if this is fake or true. I recommend anyone invested with them also to do the same.
https://heightmag.com/ashcroft-capital-lawsuit-key-facts-all...
@Evan Polaski It's not just 1 article, if you search "Ashcroft capital lawsuit" there's pages of such articles, however what stood out to me was each of them had the same generic language except for 1 that gave a detailed timeline. I am planning to write to them and confirm if this is fake or true. I recommend anyone invested with them also to do the same.
https://heightmag.com/ashcroft-capital-lawsuit-key-facts-all...
The link is comical, the lawsuit that is out there that they mention re: Coutero is an employment contract / wrongful termination dispute has nothing to do with investors. Do not believe everything your read on the internet.
@Jason Merchey @Soup Nikk @Chris Seveney
I hear you, Soup. There are pages and pages of FAKE websites created with no real details.
As Chris noted, if any of these sites actually site a case filing number, it is the EMPLOYMENT issue (tied to bonuses due after termination of employment) exclusively.
The creation of websites, AI generated articles using deep search on many AI agents can be very powerful, but in this case, and likely many more, you simply cannot believe everything you see on the internet. Here are a couple red flags about this website, besides knowing a few facts of this specific article that are completely false:
1. Every article you click on is written by "admin".
2. Every lead image is a clear internet scrub or AI generated image
3. There is no physical address on the Contact Us page, and to contact them, it is leading to a gmail account (I don't know any reputable businesses that don't use professional email addresses)
4. The style of every article is very AI: no real commentary or detail on things, lots of large bold headers with a couple sentences below each. But mostly everything is fluff, no real specifics into any topic they cover.
I am a class B investor on a few Ashcroft deals. They just announced the sale of one of the deals at a great loss, with ZERO return of initial capital to Class B investors. And now, they are making cash calls on my other deals. Clearly, Ashcroft is in huge trouble.
I am a class B investor on a few Ashcroft deals. They just announced the sale of one of the deals at a great loss, with ZERO return of initial capital to Class B investors. And now, they are making cash calls on my other deals. Clearly, Ashcroft is in huge trouble.