RAD Diversified Review — It Wasn't Pretty

RAD Diversified Review — It Wasn't Pretty

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.

6Reply
1,066 views

Most Popular Reply

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.

See this reply in the discussion

166 Replies

Jump to latestLatest
  • Investor · Bucks County · Member since 2023 · 196 posts · 156 votes
    2y

    Meanwhile they have graduated from buying single family homes to farms and golf courses....anybody find this to be strange?

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

    Meanwhile they have graduated from buying single family homes to farms and golf courses....anybody find this to be strange?


     They'd sell you your mother for an hour if that's what they need to say to get you to release their wire. Total nonsense.

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

    @Dutch Mendenhall any response to any of us?

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

    @Dutch Mendenhall Any truth to the stories posted here about you guys receiving money from a new investor and trying to shift them into a hard money promissory note at 20% annual return?

    Where can I find some info on RAD's prom note investment opportunities?

  • Member since 2020 · 6 posts · 14 votes
    2y
  • Member since 2020 · 6 posts · 14 votes
    2y

    I can't believe they post it to July 1st.

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

    If you're trying to get money out of these guys the time for pressure is now, while they are still acting like there is a future.

  • Member since 2024 · 162 posts · 232 votes
    2y

    "In response to your concerns, we've thoroughly investigated the matter and have taken steps to address any discrepancies. Also, we want to let you know that your investment has been fully refunded."

    this was the only refund by RADD mentioned in the 66 Google reviews/responses on their Google listing, and it was in response to an investor who had filed an SEC complaint, so everyone who has invested with them and has been denied a redemption, please file SEC complaint, but still more likely that a chronically depressed Lemming will survive the annual ocean crossing than you will see a dime of your investment anytime soon. 

    They are suffering from their own stupidity, being "over-leveraged", and the investor from greed/fear inducing a good old fashioned Bank RUN on them, which they don't of course have the funds to pay out without bankrupting themselves. Their only chance is to cut all distributions and redemptions and like other syndicators pray fervently that US 10yr will drop 200bips to bail them out of their own stupidity/greed, which may happen, doubtful, Lemming like odds here too. 

    What is far more interesting is not the dumb greedy investors that refuse to do an ounce of due diligence before investing and then act shocked but rather the scores of sycophantic, mindless automaton like investors in these reviews who give them 5 stars and say it's the best investment they have ever made in real estate, interspersed with RADD apologizing to 2/3rds of the reviewers for halting distributions and redemptions, which in one review they even hilariously claim that "halting redemptions is common practice in real estate." NO SIR it is not! that is definitely never common. Invariably about 75% or more of the positive reviews come from people who say they attended RADDs Wealth Retreats or conventions, suggesting a more cult like/beholden nature to their reviews perhaps. 

    Still good idea to file SEC complaint, but likely won't get you anywhere. Remember SEC never took action against Bernie Madoff who stole 42 Billion in a real Ponzi scheme that he gloated about and that was uncovered 5 years earlier by Markopolos who reported it in excruciating details to the SEC. Nor took any action against 2 Trillion induced losses during GFC, by any banker or rating agency etc, but suppose it can't hurt to get some of your frustration out by filing a complaint, and the RADD managers may be dumb enough to give you back some of your money, as they purported to in 1 review (probably a lie).

    If I were in RADDs shoes today, I would have 2 choices, file bankruptcy and disperse assets after paying all liabilities, probably <50 cents on the dollar for investors, or do what they are doing, which is to go to church every day and pray for lower rates and tell the investors to go pound Sand. 

    There are even recent google reviews touting what a great company RADD is, despite suspending all distributions and redemptions more than a year ago. Maybe these are fake reviews made by RADD or people are just this profoundly stupid/naive? I just don't get it. The company hasn't even updated its NAV share price since 3/15/23, so why would any thinking person give them their money? They are telling you for >1 year we offer no distributions nor redemption of your investment. This is the equivalent of dumping your cash on your driveway and lighting it on fire, it offers the same return metrics :)

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

    @Paul Azad If they are still raising money, whoever they find dumb enough to send money will shill for them. You will see this everywhere in investing. Once an investor hears what they need to hear to commit a large sum of capital they become so sure of their decision that they begin advising others to "follow their lead." Even sports touts with their huge failure rate and constant churn still have positive reviews and references.

    These low budget scams do not present like Madoff. They look like a scam through and through. It is always worth reporting - SEC, FTC, FBI, local police. Gather documents. If you wired money you know where they bank. Make sure you turn over that information with your complaint. Those account records will identify hundreds of other victims. 

  • Orlando, FL · Member since 2015 · 7 posts · 5 votes
    2y

    I’m looking for a hard money loan to acquire an RV park alongside seller financing and was looking at this company. I see you guys are having issues as investors, wondering if anyone has had experience on the consumer side?

  • Member since 2022 · 4 posts · 1 vote
    2y

    This business is a scam run by liars and thieves. The owners are arrogant con artists. I hope they are investigated and brought to justice. #ponzi_scheme 

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Bryce Powers:

    I’m looking for a hard money loan to acquire an RV park alongside seller financing and was looking at this company. I see you guys are having issues as investors, wondering if anyone has had experience on the consumer side?


     that is a different Rad. This company has the following entities:

    Rad Diversified REIT Inc

    RADD Capital Crypto Fund, LP (which to me when real estate fund does crypto as well I would run but that is jusy my opinion)

    RAD Diversified Land REIT

    RAD Diversified OZ, LP

    RADD Pollard Farm SPV, LLC


    This is a simple SEC search. As a reminder anyone can open a new LLC or company under another name and start to raise money for that fund.

    7e investments53 Reviews
  • Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Bryce Powers:

    I’m looking for a hard money loan to acquire an RV park alongside seller financing and was looking at this company. I see you guys are having issues as investors, wondering if anyone has had experience on the consumer side?


     that is a different Rad. This company has the following entities:

    Rad Diversified REIT Inc

    RADD Capital Crypto Fund, LP (which to me when real estate fund does crypto as well I would run but that is jusy my opinion)

    RAD Diversified Land REIT

    RAD Diversified OZ, LP

    RADD Pollard Farm SPV, LLC


    This is a simple SEC search. As a reminder anyone can open a new LLC or company under another name and start to raise money for that fund.

     @Chris Seveney I am just seeing this thread and will answer / reply to a few of the recent posts and inquiries.  As far as the LLCs, I am aware that we opened a Crypto fund about the time I stated with the Company.  I was a very limited offering.  

    In reference to the RAD Pollard Farm SPV LLC (The Pollard Farm), this aligns with our most recent farm acquisition that is in the same area of some of our other farms/ranches in Idaho (Wieser area). The other farms / ranch land in the area is our Holmes Farm, Baker Farm, Skow Property, and our Seven Rivers Cattle Auction facility (Emmett Idaho).

    The others align obviously to our RADD REIT, RADD Land REIT (RADD America), and our Opportunity Zone (OZ) as you listed.

    Thank you, Brent

  • Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Bryce Powers:

    I’m looking for a hard money loan to acquire an RV park alongside seller financing and was looking at this company. I see you guys are having issues as investors, wondering if anyone has had experience on the consumer side?

     @Bryce Powers this is a company that we get called on quite frequently. They are using the domain www.raddiversifiedllc.com I believe.  I suggest you do your due diligence.  They are not associated/aligned with RAD Diversified at all (as @Chris Seveney indicates below). 

    Thank you.
     

  • Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Melanie P.:

    @Paul Azad If they are still raising money, whoever they find dumb enough to send money will shill for them. You will see this everywhere in investing. Once an investor hears what they need to hear to commit a large sum of capital they become so sure of their decision that they begin advising others to "follow their lead." Even sports touts with their huge failure rate and constant churn still have positive reviews and references.

    These low budget scams do not present like Madoff. They look like a scam through and through. It is always worth reporting - SEC, FTC, FBI, local police. Gather documents. If you wired money you know where they bank. Make sure you turn over that information with your complaint. Those account records will identify hundreds of other victims. 

     @Melanie P. @Paul Azad We have very open and transparent with our Investors ref. our current freeze on redemptions/distributions. Our CEO and/or VP of Real Estate hold numerous monthly Zoom calls to answer questions from investors, provide current status of RADD REIT, RADD America (Land REIT), etc. We are owning the current situation we are in due to actions we faced in 2023 and have informed our investors of the actions we are taking to have a great 2024 and beyond.

    Thank you. 

  • Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Sebastian Bennett:

    Meanwhile they have graduated from buying single family homes to farms and golf courses....anybody find this to be strange?

    @Sebastian Bennett not sure how this is "strange". We have a RAD Diversified REIT focusing on our residential side and we opened a RAD Diversified Land REIT focusing on our belief in Americans investing into American farmland. We believe in procuring revenue producing real estate. We have taken our business model on residential acquisition and applied it to farms, ranches, land development, and other opportunities such as our recent procurement of Wentworth Golf Club in the Tampa FL area. We look for undervalued, farms that are not producing to potential etc. Some of the best investments we have made for our investors are our farmland in Tennessee, Arkansas, and Idaho. Keep an eye out as we plan to procure more golf courses and land (farms, ranches, and development) in the future. We are currently on contract with an additional farm in Idaho that will allow for additional row crop revenue but not require additional manning or equipment due to the vicinity of our other RADD Farms/Ranches in Idaho. We also have our own RADD Cattle herd with the RAD "Diamond" approved brand!! Our Investors love going to our farms and ranches and actually putting their feet on the land they are invested in.


    Thanks!

  • Investor · Bucks County · Member since 2023 · 196 posts · 156 votes
    2y

    Does everyone else find it odd that @Dutch Mendenhall has been an active participant on this site for years and he goes silent while @Brent Mendenhall picks up the pieces?  We've all seen this before. The attorney tells the client to keep quiet. I hate to say this because there are a lot of people who invested their life savings with this company but something is going on behind the curtains here. 

  • Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Sebastian Bennett:

    Does everyone else find it odd that @Dutch Mendenhall has been an active participant on this site for years and he goes silent while @Brent Mendenhall picks up the pieces?  We've all seen this before. The attorney tells the client to keep quiet. I hate to say this because there are a lot of people who invested their life savings with this company but something is going on behind the curtains here. 

    @Sebastian Bennett you seem to find everything "odd", "strange", etc.  I open dialogue with you, and you don't have much to respond to except your same narrative.  I work directly for the CEO and speak on his behalf and under his guidance and intent.  I believe we have opened "the curtain" to all our investors.  We have been transparent with the freeze to redemptions/distributions through numerous engagements with investors.  I have actually posted on Bigger Pockets every proactive action we have and are taking to move forward in very positive manner.  Have a great Memorial Day weekend and keep the Gold Star families in your thoughts.

    Vr Brent

  • Member since 2024 · 18 posts · 21 votes
    2y

    There appears to be a fundamental misunderstanding, Brent. A freeze on REIT distributions is entirely distinct from promissory notes or hard money loans. REIT investors are the sole party impacted by the distribution freeze.


    This situation (as shown below) presents a clear breach of contract. The legal right to pursue litigation for non-payment is absolute. Failure to act suggests a concerning lack of comprehension on the part of RAD's legal counsel and its leadership.

  • Member since 2022 · 4 posts · 1 vote
    2y

    That's not the reason. They literally mention the two founders

  • Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Jennifer O.:

    There appears to be a fundamental misunderstanding, Brent. A freeze on REIT distributions is entirely distinct from promissory notes or hard money loans. REIT investors are the sole party impacted by the distribution freeze.


    This situation (as shown below) presents a clear breach of contract. The legal right to pursue litigation for non-payment is absolute. Failure to act suggests a concerning lack of comprehension on the part of RAD's legal counsel and its leadership.

    @Jennifer O. you are correct, the 1U Amendment refers to the RADD REIT distributions/redemptions. I am actually the individual who responded to the BBB submission you have copied on here and I am working with Investor Relations on identifying any non-Inner Circle (different than our RAD Diversified REIT) promissory notes and plan of action on these with our Executive Team. Thank you.

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

    @Brent Mendenhall Please provide more information on the promissory notes investors have been complaining about and you seemingly acknowledge above. Were any of these notes registered with the SEC? What entity issues the prom notes? Are all prom note payments current as of today? What is the selection criteria for investors to which you will pitch these investments?

    The idea that you could screw up so many multifamily investments but are a reliable source for investing in farmland is farcical. You say 2023 was the issue. It's now mid-2024. What is going to make any difference at all this year? 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Melanie P.:

    @Brent Mendenhall Please provide more information on the promissory notes investors have been complaining about and you seemingly acknowledge above. Were any of these notes registered with the SEC? What entity issues the prom notes? Are all prom note payments current as of today? What is the selection criteria for investors to which you will pitch these investments?

    The idea that you could screw up so many multifamily investments but are a reliable source for investing in farmland is farcical. You say 2023 was the issue. It's now mid-2024. What is going to make any difference at all this year? 


    Prom notes are a security unless exempt .. 
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Melanie P.:

    @Brent Mendenhall Please provide more information on the promissory notes investors have been complaining about and you seemingly acknowledge above. Were any of these notes registered with the SEC? What entity issues the prom notes? Are all prom note payments current as of today? What is the selection criteria for investors to which you will pitch these investments?

    The idea that you could screw up so many multifamily investments but are a reliable source for investing in farmland is farcical. You say 2023 was the issue. It's now mid-2024. What is going to make any difference at all this year? 


    Prom notes are a security unless exempt .. 

     When we were looking at our offering which our investors are preferred equity and shareholders, we looked at debt obligations and if we would need to register for an exemption etc. 

    I know investors with their own portfolio and no money raised for an asset and will hypthocate the loan, and they typically do not file any exemption.

    When we spoke to our attorney, if we were going to sell notes which were backed by assets in any of our Regulation A+ funds those would need to be in the offering and qualified by the SEC. If it was a single bank with a line of credit that would need to be made public.

    Now, what I have seen (not saying this is being done here), but with other funds is a fund create a feeder fund /LLC that would issue promissory notes to invest in the fund. This can be very gray as you run into concurrent fund issues and fund of fund issues.

    Regarding the above, there is a lot to unpack here as it appears there are multiple REIT's, a 506c offering, training programs with notes in it etc. and honestly, I have no idea of the inner workings of all of these (nor do I care about them), but seems like a lot going on and its very complex - which for me I am a keep it simple stupid person. I would not want to be the accountant at this firm though trying to track all of this, especially if they have to file consolidated financials - Woof.

    7e investments53 Reviews
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    @Jay Hinrichs I agree. i'm curious about RAD's answer. I've read stories of investors who wired money, were told the fund was closed and offered a prom note alternative. 

    @Chris Seveney I disagree that their business is at all complicated. Sounds more along the lines of needing new scripts for the sales department and now there's a new investment opportunity. So if recent results in multifamily spook a prospect offer them farmland complete with a cattle brand. Everybody's gotta eat, right? Ridiculous. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.