Lakeville, MA · Member since 2015 · 6 posts · 6 votes
I have been to several meetups lately and there have been several comments about several deals with Western Wealth Capital running into trouble recently, but no one could give me any specifics. If anyone has any direct experience with any deals running into trouble with Western Wealth Capital (or any other operators/capital raisers) please let us know as it is likely there are many more operators in similar positions if they purchased over the last 2 years. I realize it is nice to talk about things when they are rosy, but likely the best time to discuss these things is when they are not.
I have come to the conclusion that buying properties that are too overpriced to support fixed debt, is hardly an investment. When you are getting down money from other people's money, with floating debt, it's a speculation. Alas I was dumb enough not see initially. I am likely going to be paying approx 300K stupid tax on their account.
That is the issue, I did not feel that I was provided enough specific details, so that is why I was reaching out on this forum to see if anyone has had any direct investor experience with them or any other operator who has deals that are not working out as planned so that perhaps we can learn from whatever mistakes may have been made. All that was said was that one of their operators purchased a recently distressed asset from them and that one other said that they were hit with what they thought with quite large capital calls. Again, I don't want to speak for them or start rumors, rather see if anyone has any direct credible experience they can share.
@Chris Campeau I was asking because I actually have several investments with them and am concerned based on what you've posted. To date we've had NO capital calls with our investments. I haven't heard about the distressed asset so I cant speak to that, probably because we're not involved in that (I hope). Please do post any other experiences with them, positive or negative, as they are extremely helpful. Thanks very much.
I have come to the conclusion that buying properties that are too overpriced to support fixed debt, is hardly an investment. When you are getting down money from other people's money, with floating debt, it's a speculation. Alas I was dumb enough not see initially. I am likely going to be paying approx 300K stupid tax on their account.
I have come to the conclusion that buying properties that are too overpriced to support fixed debt, is hardly an investment. When you are getting down money from other people's money, with floating debt, it's a speculation. Alas I was dumb enough not see initially. I am likely going to be paying approx 300K stupid tax on their account.
In the same boat but not going to pay tax, probably just going to loose the money I invested. BP told me real estates a safe investment and real estate only go up! "time will take care of it"
Losing more with WWC every day. Not impressed at all with their business operations at all. Granted, I jumped in ignorantly, not fully understanding the pro-formas, just looked at their track record. These were our first syndication investments. I'm thankful I stopped investing with them when I did. They already did a small capital call on 1 of the investments prior to all the craziness in the market.
Since mid-late 2023, they have been sending emails preparing investors for more future capital calls if the GP's feel it is warranted to continue operating the assets or they will just chose to sell at a loss. --more to come. Invested $170k since 2021 and total return of barely over $5k, which includes $2700 left from the first property they sold end of 2023(orig investment of 25K).
Another one of the investments, they are currently proposing for us a chance to "save a portion of our original investment," is literally unbelievable. Not even sure how WWC can legally proceed with their plan. They are saying the property is currently valued at a loss, so we have all lost all our original investment funds. However, they are proposing dissolving that partnership and allowing original investors first opportunity to participate in providing an additional 22% of our original investment, speculating a hold until 2026 with a 202% return on the new funds, resulting in a "blended return" of about 36% total return of our original+ new invested funds.
It is painful to even type this reality. I have investments with 2 other syndication groups and have not experienced this craziness. It is likely we will lose everything we invested with them since 2021. Do not invest with WWC!
@Carl Mcknight I have also invested with them. Many of their properties are in trouble. I’m not optimistic about the prospects as I’m getting many requests for additional money. I’ve had one “investment” go completely bust with them so far.