RAD Diversified Review — It Wasn't Pretty

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RAD Diversified Review — It Wasn't Pretty

Mustafa Shaikh
Member since 2023 · 2 posts · 7 votes

I read about RAD through BP and I wanted to leave my review of them for other to be better informed before investing with them. Their salesman (Gregg Poirier) was very easy to get in contact when I was considering investing. He was really pushing me to invest by a certain date to lock in my price before the share price went up. I ended up investing $10,000 into their REIT. Once I invested and was part of the "RADD family," he was very hard to get ahold of. He did confirm that I got into the REIT before the share prices went up. I wasn't able to get access to their portal even though he claimed it had been sent over.

Over a month after my investment, I get a call from RADD telling me that they actually didn't put my money into the REIT. They had oversubscribed the REIT and my money has just been sitting around in a RADD account even though Gregg had told me that my money was invested in the REIT. They claimed they didn't want to tell me that my money was not in the REIT for a month because they first wanted to figure out a solution to offer myself and other customers (red flag). They offered me a promissory note with a 10% interest rate that I believe went for 18 months. They said if there is more space in the REIT later on, the money would then be transferred into the REIT, but they couldn't promise me that I'd be able to get into the REIT. I checked out the terms of the note, it wasn't backed by ANYTHING. It essentially said I trusted them to give me 10%, which as is probably clear by now, they aren't really a trustworthy organization. I asked if I got a refund would I still get an annualized 10% for the amount of time they were sitting on my money, and they wouldn't do that.

After reviewing their terms I asked for a refund. It took me multiple emails and calls for them to get the refund sorted out over the next three weeks. My overall gist of them is that RADD got pretty popular and they don't have proper operations setup to deal with the scale. If you're an accredited investor putting in 6 figures, they might take care of you better, but otherwise I would completely stay away from them. Much better places to put your money with people who are responsive, don't overpromise, and don't continuously give you a runaround.

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Melanie P.Pro Member
Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
2y
Quote from @Dutch Mendenhall:
Quote from @Chris Tessmann:

Hey Dutch,

My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


Thank you.

Thank you for bringing this matter to my attention. I understand how important it is to resolve this matter promptly.

I want to address your concerns regarding the delay in processing your IC Membership refund. I have been made aware of some issues, including problems related to IRA money movement and incomplete deals, which have contributed to the delay in issuing refunds.

I want to assure you that your refund has been approved, and steps are being taken to expedite the process. As of now, the refund is scheduled to be issued soon. I apologize for the lack of communication and for the inconvenience caused by the delay.

Transparency, responsiveness, and reliability are indeed core values for us at RADD, and I am committed to ensuring that your concerns are addressed promptly and efficiently.

Once again, I apologize for the inconvenience and appreciate your patience and understanding in this matter.

IRA money movement and incomplete deals? Perhaps you can provide a funds tracking and proof of funds to your investor. Show where their money is received and where it is being held now.

A response like this coupled with your inability to issue a refund in dollars makes you sound like a Ponzi scheme that's about to implode on itself. I understand that is not your history, but that is what you sound like today, IMHO.

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    You should report their prom note offer to the Securities and Exchange Commission. They would be very interested in your story. I think you were very lucky to get your money back and you could very well save someone else from being scammed by making a prompt report about what they tried to pull with you. (800) SEC-0330.

    5Reply
  • Mustafa Shaikh
    OP
    Member since 2023 · 2 posts · 7 votes
    2y

    Good call. I'll give 'em a ring. 

    1Reply
  • Dutch Mendenhall
    Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes
    2y

    Thanks a bunch for taking the time to share your thoughts on RADD! Your feedback is crucial, and we genuinely appreciate it. We're committed to providing a top-notch experience for all our investors, and your input helps us identify areas for improvement.

    Transparency, responsiveness, and reliability are core values for us, and your insights have highlighted where we can enhance our services. Rest assured, we're actively working on addressing these aspects to ensure a smoother and more reliable experience moving forward.

    0Reply
  • Chris TessmannPro Member
    Rental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
    2y

    Hey Dutch,

    My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

    After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

    Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


    I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


    Thank you.

    2Reply
  • Shafi Noss
    Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
    2y

    They are using a Reg D 506(b) offering if raising from non-accredited investors. I am guessing you guys are non-accredited investors. If so they need a 'substantive relationship' with you before you put any money in. If they didn't have one, it may have been illegal for them to raise money from you. That is another thing you could mention to the SEC. 

    4Reply
  • Chris TessmannPro Member
    Rental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
    2y

    @Dutch Mendenhall wanted to check in again here. Any hope for a response?

    5Reply
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y
    Quote from @Chris Tessmann:

    Hey Dutch,

    My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

    After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

    Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


    I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


    Thank you.


     You should take everything you have concerning this to your local FBI Field Office. Ask for the dutry agent. 

    How much did they get you for? How did you pay in the money?

    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Shafi Noss

    It is a regulation a+ offering

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  • Shafi Noss
    Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
    2y
    Quote from @Chris Seveney:

    @Shafi Noss

    It is a regulation a+ offering

    They have both but probably the one on the front page tracks to the a+

    0Reply
  • Dutch Mendenhall
    Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes
    2y
    Quote from @Chris Tessmann:

    Hey Dutch,

    My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

    After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

    Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


    I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


    Thank you.

    Thank you for bringing this matter to my attention. I understand how important it is to resolve this matter promptly.

    I want to address your concerns regarding the delay in processing your IC Membership refund. I have been made aware of some issues, including problems related to IRA money movement and incomplete deals, which have contributed to the delay in issuing refunds.

    I want to assure you that your refund has been approved, and steps are being taken to expedite the process. As of now, the refund is scheduled to be issued soon. I apologize for the lack of communication and for the inconvenience caused by the delay.

    Transparency, responsiveness, and reliability are indeed core values for us at RADD, and I am committed to ensuring that your concerns are addressed promptly and efficiently.

    Once again, I apologize for the inconvenience and appreciate your patience and understanding in this matter.
    0Reply
  • Dutch Mendenhall
    Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes
    2y
    Quote from @Shafi Noss:

    They are using a Reg D 506(b) offering if raising from non-accredited investors. I am guessing you guys are non-accredited investors. If so they need a 'substantive relationship' with you before you put any money in. If they didn't have one, it may have been illegal for them to raise money from you. That is another thing you could mention to the SEC. 

    We do have both accredited and non-accredited offerings available through Reg D and Reg A. Whether you're accredited or not, we're here to address any concerns you might have and aim to do so as effectively and directly as possible.





    0Reply
  • Chris TessmannPro Member
    Rental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
    2y

    @Dutch Mendenhall I appreciate your response, but also want to reiterate that I was told it would be issued and sent weeks ago and have not been able to get a definitive answer from anyone as to what happened or what to expect timeline wise. It can't continue to be an open-ended "no update-update" in perpetuity.

    I also want to point out re: the money movement and "incomplete transactions," that is 100% not on my side, and is a very large part of what prompted the refund request. More than happy to provide all of those details and communication threads if you haven't been made fully aware, especially if it helps speed this up. 


    Thanks again,

    Chris

    3Reply
  • Chris TessmannPro Member
    Rental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
    2y

    Hey @Dutch Mendenhall,

    Checking in again. Haven't received any updates via email from your staff or here. When can I expect the refund dispersal?

    Thanks,

    Chris

    2Reply
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y
    Quote from @Dutch Mendenhall:
    Quote from @Chris Tessmann:

    Hey Dutch,

    My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

    After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

    Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


    I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


    Thank you.

    Thank you for bringing this matter to my attention. I understand how important it is to resolve this matter promptly.

    I want to address your concerns regarding the delay in processing your IC Membership refund. I have been made aware of some issues, including problems related to IRA money movement and incomplete deals, which have contributed to the delay in issuing refunds.

    I want to assure you that your refund has been approved, and steps are being taken to expedite the process. As of now, the refund is scheduled to be issued soon. I apologize for the lack of communication and for the inconvenience caused by the delay.

    Transparency, responsiveness, and reliability are indeed core values for us at RADD, and I am committed to ensuring that your concerns are addressed promptly and efficiently.

    Once again, I apologize for the inconvenience and appreciate your patience and understanding in this matter.

    IRA money movement and incomplete deals? Perhaps you can provide a funds tracking and proof of funds to your investor. Show where their money is received and where it is being held now.

    A response like this coupled with your inability to issue a refund in dollars makes you sound like a Ponzi scheme that's about to implode on itself. I understand that is not your history, but that is what you sound like today, IMHO.

    6Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Melanie P.:
    Quote from @Dutch Mendenhall:
    Quote from @Chris Tessmann:

    Hey Dutch,

    My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

    After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

    Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


    I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


    Thank you.

    Thank you for bringing this matter to my attention. I understand how important it is to resolve this matter promptly.

    I want to address your concerns regarding the delay in processing your IC Membership refund. I have been made aware of some issues, including problems related to IRA money movement and incomplete deals, which have contributed to the delay in issuing refunds.

    I want to assure you that your refund has been approved, and steps are being taken to expedite the process. As of now, the refund is scheduled to be issued soon. I apologize for the lack of communication and for the inconvenience caused by the delay.

    Transparency, responsiveness, and reliability are indeed core values for us at RADD, and I am committed to ensuring that your concerns are addressed promptly and efficiently.

    Once again, I apologize for the inconvenience and appreciate your patience and understanding in this matter.

    IRA money movement and incomplete deals? Perhaps you can provide a funds tracking and proof of funds to your investor. Show where their money is received and where it is being held now.

    A response like this coupled with your inability to issue a refund in dollars makes you sound like a Ponzi scheme that's about to implode on itself. I understand that is not your history, but that is what you sound like today, IMHO.

    While the response was very weird and did not provide a date - I would not jump to the conclusion it is a ponzi scheme. 

    The way we process distributions is once they submit a request, they must fill out a redemption form from our transfer agent (who holds the shares/ manages cap table). Once they receive this and notify us we ACH/wire the funds back. Typically this is 2 week process but most offerings will say it can take up to 90 days depending on demand. 

    @Chris Tessmann - I assume you had to complete a form for them for redemption?

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Melanie P.:
    Quote from @Dutch Mendenhall:
    Quote from @Chris Tessmann:

    Hey Dutch,

    My IC Membership refund was approved 2/13/24, and was advised 2/19/24 that it would be processed that coming Friday (2/23/24). I then sent 6 emails over the next 10 days that were not responded to until the last one on 2/29/24, and was told it didn't go out in the prior week, and that your DoC was "hoping it would go out in this week's batch" (3/1/24). On 3/1/24, your DoC sent me an email stating that "Unfortunately no disbursements will go out this week. That is the only update I can provide today. I am the only person that will be able to update you in this matter. You can continue to reach out to the entire company looking for updates but again I will be the one to reach out as I get further direction."

    After a few additional email interactions that same day, your DoC stated "I do not have an answer for you. I depend on another department as well for answers and I too have to wait," and then asked if I would "be open to an installment of a partial payment? So that I can go and ask if that is possible.If not then I will wait." (This is also after I was asked very early on if I would like to put the refund into the REIT instead of a cash refund.)

    Since then, I have sent nine additional emails asking for status update with no response from anyone in the thread. 


    I started this refund request process 12/29/23 and it has been extremely frustrating in its' own right, to say nothing of the challenges that prompted the refund request being made in the first place. If transparency, responsiveness, and reliability are truly core values for RADD, I would appreciate you seeing to it that this isn't delayed any further. 


    Thank you.

    Thank you for bringing this matter to my attention. I understand how important it is to resolve this matter promptly.

    I want to address your concerns regarding the delay in processing your IC Membership refund. I have been made aware of some issues, including problems related to IRA money movement and incomplete deals, which have contributed to the delay in issuing refunds.

    I want to assure you that your refund has been approved, and steps are being taken to expedite the process. As of now, the refund is scheduled to be issued soon. I apologize for the lack of communication and for the inconvenience caused by the delay.

    Transparency, responsiveness, and reliability are indeed core values for us at RADD, and I am committed to ensuring that your concerns are addressed promptly and efficiently.

    Once again, I apologize for the inconvenience and appreciate your patience and understanding in this matter.

    IRA money movement and incomplete deals? Perhaps you can provide a funds tracking and proof of funds to your investor. Show where their money is received and where it is being held now.

    A response like this coupled with your inability to issue a refund in dollars makes you sound like a Ponzi scheme that's about to implode on itself. I understand that is not your history, but that is what you sound like today, IMHO.

    While the response was very weird and did not provide a date - I would not jump to the conclusion it is a ponzi scheme. 

    The way we process distributions is once they submit a request, they must fill out a redemption form from our transfer agent (who holds the shares/ manages cap table). Once they receive this and notify us we ACH/wire the funds back. Typically this is 2 week process but most offerings will say it can take up to 90 days depending on demand. 

    @Chris Tessmann - I assume you had to complete a form for them for redemption?


     If this is the case then it should be easy to provide an accounting of the money from the time of receipt to wherever it is now. I have my suspicions on this one because another investor here said they sent money in for a real estate fund and then were told the fund was full and offered a promissory note with a fixed rate of interest as an alternative.

    2Reply
  • Chris TessmannPro Member
    Rental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
    2y

    @Chris Seveney - there are a couple of different things in play here, and while I can't speak to other's experiences w/ different RADD avenues, what I'm trying to get rectified here is the initial "Inner Circle" membership fee to be refunded ASAP. That's separate from actual investing money - the "cover charge," if you will.

    Wanting to see them in action vs blindly going all-in from the jump w/ RADD IC, my thought process was to get into a c"onsilidated" SDIRA from where other funds were, and knowing those are basically untouchable for quite some time (at least for me), seeing where things went vs. putting in liquid cash from day 1. 

    I'm going to leave the minute details out, but it was quite the adventure trying to get my money in the right place (and that wasn't due to error or time issue on my part, or dragging of feet in the bigger financial institutions), even when using direct preferred/recommended vendors to RADD IC. And once it finally happened, let's just say that there were a number of other changes that prompted me to request the membership fee refund.

    All that said, no JV (or other) investments were ever placed between myself and RADD IC.

    @Dutch Mendenhall, when can i expect my refund?

    0Reply
  • Chris TessmannPro Member
    Rental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
    2y

    Actually just received an email as I was typing that last response out stating that I can expect to see funds next week Tuesday. Will keep the thread updated!

    1Reply
  • Jennifer O.
    Member since 2024 · 18 posts · 21 votes
    2y

    Following this thread for a few weeks. I noticed the Better Business Bureau complaints and feedback are NOT good...and the Google reviews.

    0Reply
  • Andrew S Huang
    Member since 2024 · 2 posts · 3 votes
    2y

    I submitted request redemption June 2023 and was told that the funds scheduled for Jan 2024. As of today 3/18/24, I still not receive my funds back. Wrote many emails to RADD. All they reply is that they are still working on it. They don't have eta for the funds. This is very unacceptable. 

    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Andrew S Huang:

    I submitted request redemption June 2023 and was told that the funds scheduled for Jan 2024. As of today 3/18/24, I still not receive my funds back. Wrote many emails to RADD. All they reply is that they are still working on it. They don't have eta for the funds. This is very unacceptable. 


     FYI, I do not see any mention of this in the forum, but this was filed by the sponsor in February:

    On February 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to temporarily freeze the Company’s redemption program, effective February 1, 2024. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after February 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the program or to continue to pause the program no later than April 1, 2024.

    SIGNATURES

    Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    By:/s/ Dutch Brandon Mendenhall
    Name: Dutch Brandon Mendenhall
    Title:Chief Executive Officer

    Date: February 2, 2024

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Chris Seveney:
    Quote from @Andrew S Huang:

    I submitted request redemption June 2023 and was told that the funds scheduled for Jan 2024. As of today 3/18/24, I still not receive my funds back. Wrote many emails to RADD. All they reply is that they are still working on it. They don't have eta for the funds. This is very unacceptable. 


     FYI, I do not see any mention of this in the forum, but this was filed by the sponsor in February:

    On February 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to temporarily freeze the Company’s redemption program, effective February 1, 2024. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after February 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the program or to continue to pause the program no later than April 1, 2024.

    SIGNATURES

    Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    By:/s/ Dutch Brandon Mendenhall
    Name: Dutch Brandon Mendenhall
    Title:Chief Executive Officer

    Date: February 2, 2024


    there ya go.. they should send this to all their investors so it ends all the wild speculation.  I suspect very few if any read all the fine print when they invested.. :)
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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    2y

    All of these funds are VERY sketchy. I have done due dilligence into a few and do not believe the share valuations match reality, they go up to look good and generate more investments similar to a ponzi scheme. If you want passive just invest in VNQ and withdraw x% in addition to the dividend vs getting pure distributions from a private reit, much safer. 

    3Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Chris Seveney:
    Quote from @Andrew S Huang:

    I submitted request redemption June 2023 and was told that the funds scheduled for Jan 2024. As of today 3/18/24, I still not receive my funds back. Wrote many emails to RADD. All they reply is that they are still working on it. They don't have eta for the funds. This is very unacceptable. 


     FYI, I do not see any mention of this in the forum, but this was filed by the sponsor in February:

    On February 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to temporarily freeze the Company’s redemption program, effective February 1, 2024. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after February 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the program or to continue to pause the program no later than April 1, 2024.

    SIGNATURES

    Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    By:/s/ Dutch Brandon Mendenhall
    Name: Dutch Brandon Mendenhall
    Title:Chief Executive Officer

    Date: February 2, 2024


    there ya go.. they should send this to all their investors so it ends all the wild speculation.  I suspect very few if any read all the fine print when they invested.. :)

     There was also a SEC staff action order:



    UNITED STATES OF AMERICA
    BEFORE THE
    SECURITIES AND EXCHANGE COMMISSION
    February 2, 2024
    _______________________________
    In the Matter of
    RAD Diversified REIT, Inc.
    5404 Cypress Center Dr. Suite #320
    Tampa, FL 33609
    ORDER DECLARING OFFERING
    STATEMENT ABANDONED UNDER THE
    SECURITIES ACT OF 1933, AS AMENDED
    File No: 024-12046
    _______________________________
    RAD Diversified REIT, Inc. filed with the Commission an offering statement to qualify
    an offering of securities under Section 3(b) of the Securities Act of 1933. The offering statement
    has been on file for more than nine months and has not yet been qualified.
    In view of the foregoing, it is ORDERED that the offering statement be declared
    abandoned on February 2, 2024.
    For the Commission, by the Division of Corporation Finance, pursuant to delegated
    authority.
    Mary Beth Breslin
    Office Chie

    The sponsor can provide more information regarding this. What I will note is typically you have to renew your offering every year and receive qualification from the SEC. The last one on this offering was in 1/19/22.

    Thus this begs the question, should they have been raising money in 2023 without a qualified offering?

    The other thing I noticed is their last audited financials are in 2021 (submitted in 2022) and they did not file any 2022 audited financials or their 1-SA in 2023.

    7e investments53 Reviews
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    4Reply
  • Harry San
    Member since 2024 · 1 post · 1 vote
    2y
    Quote from @Chris Seveney:
    Quote from @Jay Hinrichs:
    Quote from @Chris Seveney:
    Quote from @Andrew S Huang:

    I submitted request redemption June 2023 and was told that the funds scheduled for Jan 2024. As of today 3/18/24, I still not receive my funds back. Wrote many emails to RADD. All they reply is that they are still working on it. They don't have eta for the funds. This is very unacceptable. 


     FYI, I do not see any mention of this in the forum, but this was filed by the sponsor in February:

    On February 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to temporarily freeze the Company’s redemption program, effective February 1, 2024. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after February 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the program or to continue to pause the program no later than April 1, 2024.

    SIGNATURES

    Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

    By:/s/ Dutch Brandon Mendenhall
    Name: Dutch Brandon Mendenhall
    Title:Chief Executive Officer

    Date: February 2, 2024


    there ya go.. they should send this to all their investors so it ends all the wild speculation.  I suspect very few if any read all the fine print when they invested.. :)

     There was also a SEC staff action order:



    UNITED STATES OF AMERICA
    BEFORE THE
    SECURITIES AND EXCHANGE COMMISSION
    February 2, 2024
    _______________________________
    In the Matter of
    RAD Diversified REIT, Inc.
    5404 Cypress Center Dr. Suite #320
    Tampa, FL 33609
    ORDER DECLARING OFFERING
    STATEMENT ABANDONED UNDER THE
    SECURITIES ACT OF 1933, AS AMENDED
    File No: 024-12046
    _______________________________
    RAD Diversified REIT, Inc. filed with the Commission an offering statement to qualify
    an offering of securities under Section 3(b) of the Securities Act of 1933. The offering statement
    has been on file for more than nine months and has not yet been qualified.
    In view of the foregoing, it is ORDERED that the offering statement be declared
    abandoned on February 2, 2024.
    For the Commission, by the Division of Corporation Finance, pursuant to delegated
    authority.
    Mary Beth Breslin
    Office Chie

    The sponsor can provide more information regarding this. What I will note is typically you have to renew your offering every year and receive qualification from the SEC. The last one on this offering was in 1/19/22.

    Thus this begs the question, should they have been raising money in 2023 without a qualified offering?

    The other thing I noticed is their last audited financials are in 2021 (submitted in 2022) and they did not file any 2022 audited financials or their 1-SA in 2023.

    I requested funds in 6/23 and they told me that it will be issued after 6 months. It is dually signed paperwork, but I still didn’t get my money. I emailed them and send me the about freeze starting Feb 1st 2024. But it should be issued in Early January 2024. 
    who should I report this scam? 
    regards

    1Reply
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