RAD Diversified SCAM ALERT!!!

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RAD Diversified SCAM ALERT!!!

Arthur Crum
Member since 2019 · 7 posts · 33 votes

Hello,

I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.

I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.

I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.



"On April 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 continue the temporary freeze of the Company’s redemption program. 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 April 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 redemption program or to continue to pause the redemption program no later than July 1, 2024."

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

I have no idea what is happening at this particular fund, and can’t chime in on any specifics.

I will say that I, along with many investors in the community, have likely lost a lot of money. Syndicators who bragged about how smart they were, showed off fancy lives, cars, private jets, and mansions, second homes, and wrote books and sold expensive courses about how smart they are at investing are being exposed all over the place. Sometimes, these syndicators who are actively in process of wiping out investor’s life savings, even brag about how automated their businesses are and how they don’t have to work!

I’m not making the same mistakes with my money again, nor will I allow investors who made their name in part on BiggerPockets to go unexposed if they treat investors poorly, lose huge amounts of investor money, or clearly mismanage funds.

We are starting PassivePockets.com and launch it in June. We will learn how to find and vet “good” and expose “bad” for ALL to see. In the meantime, we will watch the forums for more posts about the syndicators who handle situations to the chagrin of their investors. 


 Morning Scott,  I missed this post and posted above but its worth repeating. What I see irrespective of how the deals are going is the lack of communications from these syndicators
with respect to how their deals are actually doing. Communication good or bad goes along way to keeping investors from being upset to going ballistic on the internet and creating irreparable harm to the syndicators reputations.

It seems that most of the BP influencers I have seen over the years have stepped into MF syndication with varying results. So to that end they are new to the game never went through a deep downturn cycle. And for them rasing capital on SM BP facebook whatever has been fairly easy compared to others who dont have a big SM or BP presence.  This is where the crowdfunding sites helped a lot fo those types scale.

The play book as you described is an old one when it comes to marketing themselves nothing different than what the how to trainer do. The difference is they are stuck with a certain asset as we are seeing. The trainers just pivot to what is working today and set up training in that niche. But its all the same big budget for marketing and go hammer the airwaves/internet. Sell the sizzle etc etc.

Having been front and center in the late 80s of a billion dollar syndication company ( was an independent contractor in charge of finding and entitling their land projects in northern CA.) I saw what happens when these things start to go south and from my mind most of these companies that could be struggling now simply do not have enough staff to handle all their investors needs in a timely fashion and when things go bad like we see posted on BP right now lack of up front communications leads to Investors going out of their minds with worry and the blame game starts. Then of course google searches bring all these things to the front page and next thing you know reputations get hammered..

As one who personally had a medium sized HML company going into 2007 2008 with 600 loans on my books and by 2010 went through a massive re value melt down all of us in that business got hammered for us we started in 2001 and by 2010 had to basically shut down let go 90% of staff and spent 3 to 4 years hemorrhaging our net worth's to make sure our banks got paid ( which to my personal financial situation was devastating) Most of my peers went out of business completely ( BK) I did not but by 2011 I was basically starting over. But with my head held high gone was all the normal trappings of RE success being served as a big slice of humble pie :(.

And as my core commercial banks understood that I doing everything i could to protect them. The one bank left kept a 1 mil line of credit for me ( down from 15 mil) had me  on a 90 day extensions for 4 years and allowed to to earn back in. Its taken basically 12 years to get back to maybe half of what I had at the time.

Bottom line RE cycles and I suspect most of the folks that are having issues did what they thought was correct or right and the market has gone against them.. If they are not changing their personal lifestyles to adjust to this, not communicating, doing new deals leaving old ones to wither then you know what your dealing with the goal ( human nature i guess) is to keep lifestyle intact at all costs.

To that end I just paid off yesterday my last legacy bank debt took me 12 years but its done an gone now. But those same banks stuck with me and allowed me to pivot and build up my new construction side using bank debt intead of HML.. etc etc.

So If i was guessing most of the folks having issues in the space have very little assets aimed toward client relations and communications but still do big spends on advertising for new blood.

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  • Jingjing Zou
    Member since 2020 · 6 posts · 14 votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Jingjing Zou:
    Quote from @Dutch Mendenhall:


    Quote from @Arthur Crum:

    Hello,

    I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.

    I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.

    I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.



    "On April 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 continue the temporary freeze of the Company’s redemption program. 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 April 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 redemption program or to continue to pause the redemption program no later than July 1, 2024."

    Mr. Crum,

    As a RADD investor, we value your business. Under careful consideration, The Board of Directors has decided to freeze all distributions and withdrawals for an additional 90 days. This decision has been made due to record-high interest rates and the worst Real Estate economy since 2008. Most importantly, to protect you, the investor.

    In 90 days, the Board of Directors will reevaluate our cash position and decide if we will continue to recommence or continue to pause distributions. This will occur on/about 01 July 2024. I want you to know this is a good decision that has been made by our Executive board to protect your investment. We assure you, if you have been approved for a redemption/distribution, your approval will remain valid and remain in que for payment once the freeze is lifted.

    The following link is to the 1U Amendment to our SEC Offering Circular and SEC Offering Circular itself.

    https://www.sec.gov/Archives/edgar/data/1721469/000110465924043461/tm2411068d1_1u.htm

    https://www.sec.gov/Archives/edgar/data/1721469/000110465922002821/tm222539d1_partiiandiii.htm

    It’s vital to understand that the journey forward for us has a series of progressive steps:

    1. The freeze, which is painful, is necessary for us to build reserves, pull equity, and meet commitments going forward.

    2. Submitting all financials to auditors for REITs. RADD America has been submitted and RAD Diversified will follow soon.

    3. Simultaneously improve our process and communication systems.

    4. Portfolio loan against existing assets for immediate payment to investors. The loan is in process and through our financials and reserves we will achieve it.

    We are a good company with incredibly hard-working people. We are going through a challenging time that will make us stronger. Capital invested is tied up in Real Estate and we will pull equity to take care of investors.

    I highly recommend you read the SEC filing and the 1U Amendment. Additionally, as stated above, for additional questions please contact [email protected] or at (813) 709-8281.

    Additionally, Blackstone, one of the World's largest Real Estate Investment Trusts, froze redemptions in November 2022 and still have restrictions on redemptions and distributions due to the state of the Real Estate market and economy in 2023 and an unforeseen flurry of requests for withdrawal of funds within their BREIT.  

    How the hell pending my withdrawal is “to protect you, the investor”??? I followed your company policy and filed withdrawal application in March 2023, got approved and supposed to be paid out January, 2024. Rad diversified firstly did not pay out on time. Secondly, Rad diversified freeze for 6 months and don’t even give the exact date to pay. That’s called stealing from investor not protect investor.

    To Play Devils Advocate I submit:

    I suspect you just never read the entire document and all the small print that gives the sponsor these unilateral rights.. Now your upset.. does not make it stealing your money.. I don't know this person or company from a sack of salt or what  they do.. But with all the syndicators out there NOT all but many also getting stuck with their deals needing to recapitalize because interest rate rise and tax's and insurance rise was not planned for or contemplated these are legitimate actions to take to protect the greater good.  These are the risks when you send your money to a company and then you have zero control over it. That is how it works in syndication everyone of them works the same way.. As it relates to the latitude they have to run the company.. Its up to you the investor to realize this before you invest in these kind of vehicles.  Trashing the company is not going to speed up your redemption.


     I invested in Fundrise, ARK 7 and RADD and other companies. I sensed the rising interest will make impact on real estate market so I withdrawal all my investments at the end of 2022 or early 2023. Fundrise, which I invested since 2019, took less than 3 months to pay me back. ARK 7 can sell stocks within investors after minimum holding period. I understand each comapny structure and risk and I do respect it. I filed withdrwal application March 2023, and it took 10 months for RADD to pay, and they can't pay it. Do you know how many times I called and emailed with no response untill I mention I will seek legal help and finally someone replied to me. Do you know the employee told me that she's the only one working... balabla. Do you know the manger said they replace the whole accounting department that's why the redemption being deplay. If you don't know this company or what they do, where do you stand to make this comment? Promise to pay and not paying on time, freeze approved redemption without a reason and no follow up payment date is not the company I'd like to invest and have faith for.

    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Jingjing Zou:
    Quote from @Jay Hinrichs:
    Quote from @Jingjing Zou:
    Quote from @Dutch Mendenhall:


    Quote from @Arthur Crum:

    Hello,

    I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.

    I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.

    I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.



    "On April 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 continue the temporary freeze of the Company’s redemption program. 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 April 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 redemption program or to continue to pause the redemption program no later than July 1, 2024."

    Mr. Crum,

    As a RADD investor, we value your business. Under careful consideration, The Board of Directors has decided to freeze all distributions and withdrawals for an additional 90 days. This decision has been made due to record-high interest rates and the worst Real Estate economy since 2008. Most importantly, to protect you, the investor.

    In 90 days, the Board of Directors will reevaluate our cash position and decide if we will continue to recommence or continue to pause distributions. This will occur on/about 01 July 2024. I want you to know this is a good decision that has been made by our Executive board to protect your investment. We assure you, if you have been approved for a redemption/distribution, your approval will remain valid and remain in que for payment once the freeze is lifted.

    The following link is to the 1U Amendment to our SEC Offering Circular and SEC Offering Circular itself.

    https://www.sec.gov/Archives/edgar/data/1721469/000110465924043461/tm2411068d1_1u.htm

    https://www.sec.gov/Archives/edgar/data/1721469/000110465922002821/tm222539d1_partiiandiii.htm

    It’s vital to understand that the journey forward for us has a series of progressive steps:

    1. The freeze, which is painful, is necessary for us to build reserves, pull equity, and meet commitments going forward.

    2. Submitting all financials to auditors for REITs. RADD America has been submitted and RAD Diversified will follow soon.

    3. Simultaneously improve our process and communication systems.

    4. Portfolio loan against existing assets for immediate payment to investors. The loan is in process and through our financials and reserves we will achieve it.

    We are a good company with incredibly hard-working people. We are going through a challenging time that will make us stronger. Capital invested is tied up in Real Estate and we will pull equity to take care of investors.

    I highly recommend you read the SEC filing and the 1U Amendment. Additionally, as stated above, for additional questions please contact [email protected] or at (813) 709-8281.

    Additionally, Blackstone, one of the World's largest Real Estate Investment Trusts, froze redemptions in November 2022 and still have restrictions on redemptions and distributions due to the state of the Real Estate market and economy in 2023 and an unforeseen flurry of requests for withdrawal of funds within their BREIT.  

    How the hell pending my withdrawal is “to protect you, the investor”??? I followed your company policy and filed withdrawal application in March 2023, got approved and supposed to be paid out January, 2024. Rad diversified firstly did not pay out on time. Secondly, Rad diversified freeze for 6 months and don’t even give the exact date to pay. That’s called stealing from investor not protect investor.

    To Play Devils Advocate I submit:

    I suspect you just never read the entire document and all the small print that gives the sponsor these unilateral rights.. Now your upset.. does not make it stealing your money.. I don't know this person or company from a sack of salt or what  they do.. But with all the syndicators out there NOT all but many also getting stuck with their deals needing to recapitalize because interest rate rise and tax's and insurance rise was not planned for or contemplated these are legitimate actions to take to protect the greater good.  These are the risks when you send your money to a company and then you have zero control over it. That is how it works in syndication everyone of them works the same way.. As it relates to the latitude they have to run the company.. Its up to you the investor to realize this before you invest in these kind of vehicles.  Trashing the company is not going to speed up your redemption.


     I invested in Fundrise, ARK 7 and RADD and other companies. I sensed the rising interest will make impact on real estate market so I withdrawal all my investments at the end of 2022 or early 2023. Fundrise, which I invested since 2019, took less than 3 months to pay me back. ARK 7 can sell stocks within investors after minimum holding period. I understand each comapny structure and risk and I do respect it. I filed withdrwal application March 2023, and it took 10 months for RADD to pay, and they can't pay it. Do you know how many times I called and emailed with no response untill I mention I will seek legal help and finally someone replied to me. Do you know the employee told me that she's the only one working... balabla. Do you know the manger said they replace the whole accounting department that's why the redemption being deplay. If you don't know this company or what they do, where do you stand to make this comment? Promise to pay and not paying on time, freeze approved redemption without a reason and no follow up payment date is not the company I'd like to invest and have faith for.

    I agree these actions have tainted the company big time. I just dont think it Stealing. I did not say it was proper or how it should be handled and as I stated you can find 10 threads on BP and I am sure other sites like Reddit about syndicators doing the same thing IE freezing payouts. How a company then handles those situations will define how they do in the future.. It appears this company has not handled it well allowed this to get out into SM and from what I can see has done irreparable harm to its reputation.  I just dont think it was pre meditated stealing.  Or like many like to go to and claim Ponzi.

    I think these are good discussions to have for investors when the market has shifted and choosing a sponsor is so critical and one cant invest simply on popularity or SM presence. AS for Fundrise I think they are/were a crowd funder to start with Just think how many crowdfunding sites bit the dust and massive loss's happened.. only a few it seems have been able to keep going.. Realty Shares comes to mind.

    To me bottom line when your money goes into these funds you have lost all real control and your simply along for the ride be it good or bad.

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  • Mark Sanita
    Member since 2024 · 3 posts · 5 votes
    2y
    Quote from @Arthur Crum:

    Jay, my cousin is an attorney and he is simply looking at the contract for me. I dont care if its a dollar, if someone steals from me im comming for them. 


     So am I. Dutch Mendenhall and his side kick Amy are in a lot of trouble. Now what the hell is the SEC doing for all of the investors including myself. This RAT is going DOWN!!

    2Reply
  • Mark Sanita
    Member since 2024 · 3 posts · 5 votes
    2y
    Quote from @Arthur Crum:
    Jay, I think in a post-covid world people have so emboldened they think they can do whatever they want and face no legal consequences. The whole RAD situation seems eerily similar to the Ponzi scheme run by "The Cashflow King' himself, Matthew Motil who was just charged by the SEC in 2023 for stealing over $11 million. Lets not forget SBF and the entire FTX collapse and the list certainly goes on. Did they ever really intend to pay their investors back? I'm interested to hear from other investors what their thoughts are on the matter? I think it's only a matter of time before the truth is revealed.  

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Mark Sanita:
    Quote from @Arthur Crum:

    Jay, my cousin is an attorney and he is simply looking at the contract for me. I dont care if its a dollar, if someone steals from me im comming for them. 


     So am I. Dutch Mendenhall and his side kick Amy are in a lot of trouble. Now what the hell is the SEC doing for all of the investors including myself. This RAT is going DOWN!!


    other than freezing redemption's what specifically do you believe they have done that is illegal or dishonest or their collateral that you invested in is in serious jeopardy.

    Can you be specific other than they are Rats :)  this is good information for others to follow and learn from..
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  • Mark Sanita
    Member since 2024 · 3 posts · 5 votes
    2y
    Quote from @Arthur Crum:
    Jay, I think in a post-covid world people have so emboldened they think they can do whatever they want and face no legal consequences. The whole RAD situation seems eerily similar to the Ponzi scheme run by "The Cashflow King' himself, Matthew Motil who was just charged by the SEC in 2023 for stealing over $11 million. Lets not forget SBF and the entire FTX collapse and the list certainly goes on. Did they ever really intend to pay their investors back? I'm interested to hear from other investors what their thoughts are on the matter? I think it's only a matter of time before the truth is revealed.  

     I am so sorry that I invested with them. I would like everyone that is in this position just as I am lets start a class action lawsuit today against this company. Is there any great lawyers out there that can help all of us sue the hell out of them. What is wrong with our government by letting them get away with this.

    3Reply
  • Justin Maciak
    Member since 2024 · 1 post · 2 votes
    2y
    I just learned about this today - I wanted to pull my money out because of a personal hardship. Really infuriated at the moment! Happy to get on board with a class action suit. Please contact me if you want to get something going.
    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Justin Maciak:
    I just learned about this today - I wanted to pull my money out because of a personal hardship. Really infuriated at the moment! Happy to get on board with a class action suit. Please contact me if you want to get something going.

    Just a point of fact Class action suits are a pipe dream at this level in almost all circumstances.
    there has to be money to collect.  
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Jay Hinrichs

    I agree. People can try and sue but if nothing illegal was done / the sponsor can be near incompetent but as long as they did what they said they would do in the offering then it’s just a bad investment

    As you mention jay they have multiple offerings and I still bet people are investing in them without reading what is going on or knowing what they are investing in.

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    @Dutch Mendenhall Your latest email was just released titled "4 X Your Investment". Contained within is a video of you interviewing someone on how to 4X revenues through ad spend. Is this really the correct allocation of your organizations resources at this time? 

    Meanwhile your website lists 11 staff members with the following titles: CRM/Email manager (1); SEO Manager (1); Content Creator (3); Director of Advertising (1);  Digital Advertising Specialist (1); Event Logistic Specialist (1); Chief Creative Officer (1); Social Media Manager (1); Senior Social Media Engagement (1)

    How is this overhead optimizing your real estate portfolio so you can return to making distributions? Perhaps you should be refocusing your organizations resources at this time?

    [email protected]
    7Reply
  • Manny VasquezBusiness Member
    Real Estate Agent · Orange County · Member since 2022 · 317 posts · 293 votes
    2y

    @Dutch Mendenhall Care to chime??

    3Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y
    Quote from @Manny Vasquez:

    @Dutch Mendenhall Care to chime??

    I still want to know what these titles job functions are: Director of Special Operations vs director of operations (one is a Mendenhall), VP of real estate and director of real estate (both are Mendenhall's) There is already a CFO and COO not names Dutch or Amy. No bios for any of the staff members either. Everyone is in the dark!

    1Reply
  • Brent Mendenhall
    Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Sebastian Bennett:
    Quote from @Manny Vasquez:

    @Dutch Mendenhall Care to chime??

    I still want to know what these titles job functions are: Director of Special Operations vs director of operations (one is a Mendenhall), VP of real estate and director of real estate (both are Mendenhall's) There is already a CFO and COO not names Dutch or Amy. No bios for any of the staff members either. Everyone is in the dark!


     Sebastian Bennett, feel free to reach out to me directly.  919-604-5703

    0Reply
  • Mark Sanita
    Member since 2024 · 3 posts · 3 votes
    2y
    Quote from @Justin Maciak:
    I just learned about this today - I wanted to pull my money out because of a personal hardship. Really infuriated at the moment! Happy to get on board with a class action suit. Please contact me if you want to get something going.

     Justin, Mark Sanita here, I have contacted a law office in Coral Springs, Florida last week. Please let everyone know Its Silver Law Group (954) 755 4799 They are trying to help me out with my Rad Diversified situation. I think the more people that call them we might have a chance of opening 1 big class action lawsuit. Thanks 

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Mark Sanita:
    Quote from @Justin Maciak:
    I just learned about this today - I wanted to pull my money out because of a personal hardship. Really infuriated at the moment! Happy to get on board with a class action suit. Please contact me if you want to get something going.

     Justin, Mark Sanita here, I have contacted a law office in Coral Springs, Florida last week. Please let everyone know Its Silver Law Group (954) 755 4799 They are trying to help me out with my Rad Diversified situation. I think the more people that call them we might have a chance of opening 1 big class action lawsuit. Thanks 

    @Dutch Mendenhall

    I am playing devils advocate on this one..

    what do you guys hope to achieve thinking your going to be able to do a class action.

    I mean from what I see here on this thread the only thing that has happened is distributions have been postponed or delayed.. and more likely than not the sponsor has the legal right to do that.

    so at this point other than being pissed off you cant get your redemption when you wanted it there are no loss's what are they going to do a massive class action over ? 

    Now if this all ends up in BK and there are actually loss's and the attorney thinks there is insurance money to go after then maybe some litigation will be warranted..

    I highly suspect you folks have never ever been through any kind of civil business litigation and have no clue how expensive and time consuming it can be.. No attorney is going to take this on contingency from what I see posted here.

    Now on the flip side.

    there was a good post on BP facebook from a syndicator that went to a conference with a bunch of syndicators and one of the main points being brought up by the investors in the audience is the Poor communications that is coming out of the syndicators these days. Which is leading to these assassinations on SM by Investors many with very little money at risk like the OP who started this thread 5k and he is going into orbit over it.. Syndicators need to take heed on this and up their communication game big time otherwise this is the result reputation assassination whether your right or wrong. 

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    2Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    I agree with @Jay Hinrichs. A lawsuit at this stage is likely throwing good money after bad. Best course of action is to work on better accountability/communication and perhaps push RAD to re-allocate some of their operational spend on personnel that can maximize the profitability of  it's portfolio.

    My observations of their business tends to focus on their Philadelphia operations/portfolio which I understand to be a sizeable portion of RAD'S holdings. While I hate to be the bearer of bad news the latest email to hit my inbox (yesterday) was titled: [Walk Through] We flipped this property for $200K....  Contained within the the email was a 5 Minute video featuring @Dutch Mendenhall providing a tour of 4488 Livingston Street, a single family home I can best describe for those not familiar with Philadelphia as located in a "C" neighborhood with no barriers of entry. 

    I am not going to even get into the video itself because the renovation looks like a complete disaster but relying solely on information that's public and easily accessible, this single family home was purchased by DH1 Fund LP, a RAD affiliate in 2017 at a sheriff sale and transferred from predecessor company to DDH Fund LP in 2019. A permit was was pulled in 2019 to close out violations as the remarks indicate the home was renovated without permits. Fast forward to now & there are no permits that have been issued since 2019. Oh and there is no sales history for this home having sold. Thus it was as not flipped (unless you consider the nominal transfer between predecessor deed holder and current deed holder a flip).

    Either this is a video from 2019 that's being recycled by their rather robust marketing division or RAD is renovating this C neighborhood home twice in a 5 year period (and for a second time without permits). Regardless of which holds true, for a company who represents to have a $250M portfolio to select this home to be showcased in their marketing materials at this time speaks to the operational disconnect that exists.

    I've written on this before but investing passively requires even greater diligence than investing actively. Active investors have to conduct diligence on the investment thesis/ opportunity whereas anyone investing passively has to conduct diligence on the operators as well as the investment thesis/investment opportunity. I can't speak to the legalities of the paused distributions ( I did not invest in any RAD offerings) but what I can observe are poor operations. Again, your time and energy is better spent increasing accountability and pushing RAD to improve their staffing with individuals qualified to maximize their portfolio at this time.....and in the future spend some time and money to perform adequate diligence before you invest passively. 

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    8Reply
  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    2y
    Quote from @Stuart Udis:

    I agree with @Jay Hinrichs. A lawsuit at this stage is likely throwing good money after bad. Best course of action is to work on better accountability/communication and perhaps push RAD to re-allocate some of their operational spend on personnel that can maximize the profitability of  it's portfolio.

    My observations of their business tends to focus on their Philadelphia operations/portfolio which I understand to be a sizeable portion of RAD'S holdings. While I hate to be the bearer of bad news the latest email to hit my inbox (yesterday) was titled: [Walk Through] We flipped this property for $200K....  Contained within the the email was a 5 Minute video featuring @Dutch Mendenhall providing a tour of 4488 Livingston Street, a single family home I can best describe for those not familiar with Philadelphia as located in a "C" neighborhood with no barriers of entry. 

    I am not going to even get into the video itself because the renovation looks like a complete disaster but relying solely on information that's public and easily accessible, this single family home was purchased by DH1 Fund LP, a RAD affiliate in 2017 at a sheriff sale and transferred from predecessor company to DDH Fund LP in 2019. A permit was was pulled in 2019 to close out violations as the remarks indicate the home was renovated without permits. Fast forward to now & there are no permits that have been issued since 2019. Oh and there is no sales history for this home having sold. Thus it was as not flipped (unless you consider the nominal transfer between predecessor deed holder and current deed holder a flip).

    Either this is a video from 2019 that's being recycled by their rather robust marketing division or RAD is renovating this C neighborhood home twice in a 5 year period (and for a second time without permits). Regardless of which holds true, for a company who represents to have a $250M portfolio to select this home to be showcased in their marketing materials at this time speaks to the operational disconnect that exists.

    I've written on this before but investing passively requires even greater diligence than investing actively. Active investors have to conduct diligence on the investment thesis/ opportunity whereas anyone investing passively has to conduct diligence on the operators as well as the investment thesis/investment opportunity. I can't speak to the legalities of the paused distributions ( I did not invest in any RAD offerings) but what I can observe are poor operations. Again, your time and energy is better spent increasing accountability and pushing RAD to improve their staffing with individuals qualified to maximize their portfolio at this time.....and in the future spend some time and money to perform adequate diligence before you invest passively. 


    *Mic drop...

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    Alan Asriants - New Century Real Estate 590 Reviews
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    2Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y
    1Reply
  • Becca Pariser
    Member since 2021 · 31 posts · 10 votes
    2y

    Just to be clear - which RAD Diversified are you referring to?

    This group was posting in a FB group about private lending: https://raddiversifiedllc.com/


    But I think you're referring to this group, right?: https://raddiversified.com/team/

    1Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y

    @Becca Pariser This thread is related to a real estate investment company, not a lender. Multiple threads on bigger pockets with RAD Diversified investors (the REIT and investment company) complaining about bait and switch tactics where they believed to invest in the REIT only to find out RAD tried to convert the investment into an unsecured loan. @Dutch Mendenhall is on bigger pockets but has failed to answer to any red flag accusations that have been presented. Don't know anything about RAD the lender.

    3Reply
  • Mark Sanita
    Member since 2024 · 3 posts · 3 votes
    2y
    Quote from @Becca Pariser:

    Just to be clear - which RAD Diversified are you referring to?

    This group was posting in a FB group about private lending: https://raddiversifiedllc.com/


    But I think you're referring to this group, right?: https://raddiversified.com/team/


     Yes, this is the investment company that is holding all of my investment money and wont give it back.

    1Reply
  • Becca Pariser
    Member since 2021 · 31 posts · 10 votes
    2y

    Appreciate it. I found another thread about RAD Diversified - a private money lending group. Also potentially sketchy!

    0Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y

    Hey Radd Enthusiasts! Check out their Instagram page, RADDCOMPANIES...They are getting ready for their investor Summit...self described as the Coachella festival for people with 401K's....can't make this stuff up lol

    2Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y

    BTW here's the link https://investwealthsummit.com/

    Very little is mentioned about RAD which seems odd since its clearly a marketing opportunity to pull in more capital. Questions why they aren't marketing the RADD brand better? Perhaps because they know people will do a simple internet search and see the *****torm that's brewing?

    0Reply
  • Scott TrenchPro Member
    Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
    2y

    I have no idea what is happening at this particular fund, and can’t chime in on any specifics.

    I will say that I, along with many investors in the community, have likely lost a lot of money. Syndicators who bragged about how smart they were, showed off fancy lives, cars, private jets, and mansions, second homes, and wrote books and sold expensive courses about how smart they are at investing are being exposed all over the place. Sometimes, these syndicators who are actively in process of wiping out investor’s life savings, even brag about how automated their businesses are and how they don’t have to work!

    I’m not making the same mistakes with my money again, nor will I allow investors who made their name in part on BiggerPockets to go unexposed if they treat investors poorly, lose huge amounts of investor money, or clearly mismanage funds.

    We are starting PassivePockets.com and launch it in June. We will learn how to find and vet “good” and expose “bad” for ALL to see. In the meantime, we will watch the forums for more posts about the syndicators who handle situations to the chagrin of their investors. 

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    BiggerPockets
    8Reply
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