RAD Diversified SCAM ALERT!!!

General Real Estate Investing
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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 I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.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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  • Ethan Blue
    Member since 2024 · 12 posts · 9 votes
    2y
    Quote from @Sebastian Bennett:

    Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?


     Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there. 

    0Reply
  • Brent Mendenhall
    Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Ethan Blue:
    Quote from @Sebastian Bennett:

    Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?


     Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there. 

     @Ethan Blue Hey Ethan, we hope to see you at the next retreat.  I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared.  Have a great weekend.

    0Reply
  • Ethan Blue
    Member since 2024 · 12 posts · 9 votes
    2y
    Quote from @Brent Mendenhall:
    Quote from @Ethan Blue:
    Quote from @Sebastian Bennett:

    Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?


     Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there. 

     @Ethan Blue Hey Ethan, we hope to see you at the next retreat.  I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared.  Have a great weekend.

    Thanks, Brent you too. Have you see my latest email to you and Lionel and Gretchen? I just want to make sure you are in the loop on my hard money loan situation.
    0Reply
  • Brent Mendenhall
    Member since 2024 · 33 posts · 3 votes
    2y
    Quote from @Ethan Blue:
    Quote from @Brent Mendenhall:
    Quote from @Ethan Blue:
    Quote from @Sebastian Bennett:

    Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?


     Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there. 

     @Ethan Blue Hey Ethan, we hope to see you at the next retreat.  I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared.  Have a great weekend.

    Thanks, Brent you too. Have you see my latest email to you and Lionel and Gretchen? I just want to make sure you are in the loop on my hard money loan situation.

     @Ethan Blue yes I did, the Team will be back in office on Wednesday.  I will ensure they respond appropriately.  Thanks!!

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y

    This is not specific to any individual or any specific real estate investment, or specific company offering investments


    Most people who invest in passive investments do far too LITTLE research on the investment itself and on the “sponsor”; furthermore most do not understand the investment and many have absolutely no idea exactly what they invested in.  This not only refers to lay people; attorneys also can invest with no research.  I had an investor who was a licensed attorney invest in a prior fund with me in 2003. For 6 years we had uninterrupted return on the 14% annual area.  When 2008 -2009 hit we were forced to cut our quarterly payouts to reflect the problem loans.  He called and asked us to just liquidate the portfolio of loans and pay him and the other investors.  When I told him it would be a very bad time to sell the mortgage notes as there were almost no buyers, he said he didn’t realize we were investing in non liquid assets?  Huh? It stated all over our PPM “this is an investment in a non liquid asset”.  
    I’ve got numerous other examples.  Even professionals “short cut” the process and invest without almost any research.  That’s okay, just accept the risk of a “surprise”. 

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  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y

    Inner circlejerk for  thec few who  hsvent been nripped off....

    .....yet

    1Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y
    Quote from @Alan David:

    Inner circlejerk for  thec few who  hsvent been nripped off....

    .....yet

    Your not “ripped off” if the investment parameters and risks were properly disclosed and you chose not to read the disclosure materials.  The fact that a possible and anticipated negative event occurred for which the investor was not prepared due to their lack of due diligence by not even reading the disclosures offered does not equate with a “rip off”.  
    There are plenty of rip offs in the investment world.  And when they’re uncovered the attendant publicity is huge, IF the resultant loses are large enough.  The problem is the waters are muddied when a negative occurs with the investment that is in no way the result of dishonesty or incompetence; it’s merely the revealing of the probability of an outcome that has been properly disclosed as a possibility - yet the unsophisticated investor begins crying Ponzi scheme, theft, incompetence and every other accusation they can think of rather than considering the possibility that they made an investor with higher risk than a money market fund. 
    I’ve invested relatively small amounts in “flyers”, and because the invested amount was small in relation to my overall portfolio chose not to perform a thorough due diligence.  When a loss was incurred I accepted it as a cost of investing without thorough investigation and or the percentage probability of an unprofitable outcome.  Of course outright theft or dishonesty on the part of the sponsor or investment advisor is a completely different matter. 
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  • Jennifer O.
    Member since 2024 · 18 posts · 21 votes
    2y
    Quote from @Don Konipol:
    Quote from @Alan David:

    Inner circlejerk for  thec few who  hsvent been nripped off....

    .....yet

    Your not “ripped off” if the investment parameters and risks were properly disclosed and you chose not to read the disclosure materials.  The fact that a possible and anticipated negative event occurred for which the investor was not prepared due to their lack of due diligence by not even reading the disclosures offered does not equate with a “rip off”.  
    There are plenty of rip offs in the investment world.  And when they’re uncovered the attendant publicity is huge, IF the resultant loses are large enough.  The problem is the waters are muddied when a negative occurs with the investment that is in no way the result of dishonesty or incompetence; it’s merely the revealing of the probability of an outcome that has been properly disclosed as a possibility - yet the unsophisticated investor begins crying Ponzi scheme, theft, incompetence and every other accusation they can think of rather than considering the possibility that they made an investor with higher risk than a money market fund. 
    I’ve invested relatively small amounts in “flyers”, and because the invested amount was small in relation to my overall portfolio chose not to perform a thorough due diligence.  When a loss was incurred I accepted it as a cost of investing without thorough investigation and or the percentage probability of an unprofitable outcome.  Of course outright theft or dishonesty on the part of the sponsor or investment advisor is a completely different matter. 

    Right: but what about the dozens of contracts and hard money loans that are in default without extension or remedy. Just read the BBB reviews, Google. The fund itself is separate than these individual contracts. Note, as other folks pointed out and even a case filed recently in FL (Stark vs RAD) …the notes are not hard money or backed by any property.  No one is screaming fraud or theft. The fact that they are telling people otherwise is morally questionable for any investor or inner circle wannabe.  If they’re so hard pressed to preserve cash, why is the retreat in Puerto Rico? Why is money being spent on useless swag. Why fly the whole family with you. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Jennifer O.:
    Quote from @Don Konipol:
    Quote from @Alan David:

    Inner circlejerk for  thec few who  hsvent been nripped off....

    .....yet

    Your not “ripped off” if the investment parameters and risks were properly disclosed and you chose not to read the disclosure materials.  The fact that a possible and anticipated negative event occurred for which the investor was not prepared due to their lack of due diligence by not even reading the disclosures offered does not equate with a “rip off”.  
    There are plenty of rip offs in the investment world.  And when they’re uncovered the attendant publicity is huge, IF the resultant loses are large enough.  The problem is the waters are muddied when a negative occurs with the investment that is in no way the result of dishonesty or incompetence; it’s merely the revealing of the probability of an outcome that has been properly disclosed as a possibility - yet the unsophisticated investor begins crying Ponzi scheme, theft, incompetence and every other accusation they can think of rather than considering the possibility that they made an investor with higher risk than a money market fund. 
    I’ve invested relatively small amounts in “flyers”, and because the invested amount was small in relation to my overall portfolio chose not to perform a thorough due diligence.  When a loss was incurred I accepted it as a cost of investing without thorough investigation and or the percentage probability of an unprofitable outcome.  Of course outright theft or dishonesty on the part of the sponsor or investment advisor is a completely different matter. 

    Right: but what about the dozens of contracts and hard money loans that are in default without extension or remedy. Just read the BBB reviews, Google. The fund itself is separate than these individual contracts. Note, as other folks pointed out and even a case filed recently in FL (Stark vs RAD) …the notes are not hard money or backed by any property.  No one is screaming fraud or theft. The fact that they are telling people otherwise is morally questionable for any investor or inner circle wannabe.  If they’re so hard pressed to preserve cash, why is the retreat in Puerto Rico? Why is money being spent on useless swag. Why fly the whole family with you. 


     Here is that case if anyone is interested as its public records. My bigger question is: 

    do people NOT have an attorney review what they sign before they sign it. This note looks like it was written by a third grader.

    Its like luring a kid with a lollipop when these sponsors throw out these returns that are just unimaginable. 


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

    I began following RAD once an article ran in a local Philadelphia newspaper in 2022 that was quite incriminating with good reporting and substantiated evidence. Unfortunately its not visible online without a subscription to the Philadelphia inquirer but happy to send anyone interested the article who messages me. With my familiarity of the Philadelphia market I can say there have been a number of marketing and filing  misrepresentations that have been made related to the Philadelphia portfolio, some of which I raised previously in these forums. 

    Unfortunately social media has become a tool that's made it easier for many of these investment companies to get in front of their targets and suspect they invest heavily in SEO services  to get in front of the desired clients (those who lack the sophistication or resources/ability to conduct proper diligence). That's the part that is most troubling. Furthermore when you raise money from investors who don't have local knowledge of the market where the investments are made it only magnifies the problems that persist and allows some of these operators to extend the time period before the true troubles surface which only makes it worse for those who have invested.  

    [email protected]
    1Reply
  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y
    Quote from @Ethan Blue:
    Quote from @Sebastian Bennett:

    Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?


     Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there. 


     If I spent $50,000 on a vacation I would hope I would be treated well as well! For $50,000 I am sure I can get far better hotel accommodations than what RAD is offering their inner circle members (because it seems that's all they get in return for their money based on what others are sharing).

    1Reply
  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    I read the disclosures,and heard from the boss in a roundtable discussion, that the investor comes first, he told of one with a serious need to pull his money out and how that need was served. But I cannot get my somewhat incidental funds,Why do the employees insist on putting blame on me?
    Ive read all the sec filings as well,I'm no dummy and  i know when
    Im being screwed.How much of your own money is invested Jenn?



    0Reply
  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    I resent people saying I did not do my due diligence,You assume too much.
    I am in several other reits and have been served well by them."Mr.High pockets", you have no idea.
    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y

    I think there is a misunderstanding here by the new posters who come on this forum to post about negative experiences with their investments in real estate syndications or funds.

    We experienced, long time BP members are NOT saying that you haven't been "ripped off"; we're not saying that the sponsor of the investment hasn't done anything illegal or unethical or anything like that. We are not DEFENDING the sponsor.  What we are saying is the following

    1. Many posters state that the investment was a Ponzi scheme and or the investment was a "rip off" or the sponsors are criminals and their only reasoning is that they were "sold" a return of x and did not receive it or distributions stopped or the terms of their investment was changed.  We rightly point out that an investment not meeting target returns does not necessarily indicate fraud; that any investment outside of US treasury bills is a RISK and a percentage of investments don't and won't work out as anticipated; and that leveraged real property investments are higher on the risk scale than a lot of other investments. 

    2. We state that the investors who are posting may not have read the PPM, may not have investigated the investment or sponsor, and may not have engaged the services of legal counsel to review the corresponding documents. We base this on the admission by the poster that they have first reviewed the documents AFTER the investment went south.

    3. We state that in some instances investors appear to have considered only the high return offered as the sole basis of their investment criteria.  We can draw this conclusion when we see the offering in question showing projected returns far in excess of what we know is achievable without an undo degree of risk. 

    Illegal offering of investments, especially to investors for which the investment risk is "inappropriate" is an ongoing serious matter; as is outright fraud on the part of sponsors. However; investors also bear a responsibility to sufficiently investigate the contemplated investment, to assess whether the investment is appropriate for them, and to know or learn enough about personal finance to evaluate whether or not they are able to sustain a loss without undo strain. In other words even if an investment was a "rip off" there were usually signs that indicated such (warning flags) at the time the investment was in the offering stage. To avoid similar rip offs in the future, the investor needs to bear responsibility for vetting any investment offering they're contemplating, or if not just leave your money in government guaranteed investments (like FDIC insured bank accounts). Otherwise 2 years from now the same posters will be back with the same stories on their new investments.

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  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    i HAVENT MENTIONED THEIR PRACTICE OF WITHHOLDING ANY FUTURE EARNINGS
    ON THE INVESTMENTS ONCE YOU MAKE A DISTRIBUTION REQUEST, IN MY CASE THAT IS TWO YEARS( SO FAR) WITH THE FUNDS JUST SITTING IN MY ACCOUNT DOING NOTHING.i IMAGINE IF THEIR FUND HAS A LOSS i WOULD BE  SUBJECT TO THAT TOO.
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Alan David:
    i HAVENT MENTIONED THEIR PRACTICE OF WITHHOLDING ANY FUTURE EARNINGS
    ON THE INVESTMENTS ONCE YOU MAKE A DISTRIBUTION REQUEST, IN MY CASE THAT IS TWO YEARS( SO FAR) WITH THE FUNDS JUST SITTING IN MY ACCOUNT DOING NOTHING.i IMAGINE IF THEIR FUND HAS A LOSS i WOULD BE  SUBJECT TO THAT TOO.

    I guess dumb question how do you know there is cash sitting in YOUR account.. do you have a copy of a bank statement or is it just a report prepped by the company ?..
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  • Sebastian Bennett
    Investor · Bucks County · Member since 2023 · 196 posts · 157 votes
    2y
    Excerpts from the 2022 Philadelphia Inquirer article:

    The boarded-up row home at 4243 Leidy Avenue, for example, is said to be earning the company $14,400 a year in rent- even though it has no rental license and its most recent license was as a vacant property.

    Two more properties 10 W. Pomona Street and 6400 Glenmore Ave in Elmwood are listed as delivering "projected rents" of $14,400 and $12,200 a yar. L&I has labled both of them as unsafe, meaning the agency found them to be "dangerous to the life, health, property or safety of the public or the occupants of the structure". The designation means no one can live in them.

    The vacant dilapidated house at 915 Dauphin Street meanwhile was listed as having a market value of $200,000 in a February 2020 RAD document, about three years after the DDH Fund paid $27,000 for that property when images on the Atlas property data website show it was in better condition. 

    THEN THERE IS THIS:

    During the Way of Renaissance Man podcast interview Mendenhall told host Woods that he came to real estate after an early career coaching college basement, a grueling vocation that he said left him feeling burnt out.....Mendenhall did his coaching at University of San Francisco according to this Biography on Rad's Website. A spokesperson for the school said Mendenhall had not been a paid university employee but had coached as a volunteer in 2021.

    I am sorry but when you lie about something so minor you know there are bigger issues! Also who is Amy Vaughn his partner. She is a ghost online before RAD. How do you go from being a ghost to managing a company that secured hundreds of millions in investment dollars? You have a company with a guy who lied about a coaching career and a ghost running the show. How are the alarms not going off?
    2Reply
  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Alan David:
    i HAVENT MENTIONED THEIR PRACTICE OF WITHHOLDING ANY FUTURE EARNINGS
    ON THE INVESTMENTS ONCE YOU MAKE A DISTRIBUTION REQUEST, IN MY CASE THAT IS TWO YEARS( SO FAR) WITH THE FUNDS JUST SITTING IN MY ACCOUNT DOING NOTHING.i IMAGINE IF THEIR FUND HAS A LOSS i WOULD BE  SUBJECT TO THAT TOO.

    I guess dumb question how do you know there is cash sitting in YOUR account.. do you have a copy of a bank statement or is it just a report prepped by the company ?..

    0Reply
  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    I DON'T KNOW BUT I AM HOPEFUL THAT ONE DAY THIS WILL BE RESOLVED.
    STUBBORN.
    0Reply
  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    i guess i was duped by the sales pitch, but i did look into the company as bet as i could,im no financial brainac,but i am informed, and have done ok with my years of saving for retirement.Now i am retired and living well.
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Alan David:
    i guess i was duped by the sales pitch, but i did look into the company as bet as i could,im no financial brainac,but i am informed, and have done ok with my years of saving for retirement.Now i am retired and living well.

    the key to investing in these types of deals is just like you just said.. you can lose the money and not change your lifestyle.. Its those investors that invest and if they lose their money their lifestyle  marriage  and financial standings are deeply affected. those folks should not invest in High yield RE investments were the day they invest they lose control of their funds.. IMHO
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  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Alan David:
    i guess i was duped by the sales pitch, but i did look into the company as bet as i could,im no financial brainac,but i am informed, and have done ok with my years of saving for retirement.Now i am retired and living well.

    the key to investing in these types of deals is just like you just said.. you can lose the money and not change your lifestyle.. Its those investors that invest and if they lose their money their lifestyle  marriage  and financial standings are deeply affected. those folks should not invest in High yield RE investments were the day they invest they lose control of their funds.. IMHO

    0Reply
  • Alan David
    Member since 2024 · 95 posts · 35 votes
    2y

    Ive  had a serious health issue.I spent a **** ton on new treatments that c didn't v work i didn't touch my savings though

    1Reply
  • Jennifer O.
    Member since 2024 · 18 posts · 21 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Jennifer O.:
    Quote from @Don Konipol:
    Quote from @Alan David:

    Inner circlejerk for  thec few who  hsvent been nripped off....

    .....yet

    Your not “ripped off” if the investment parameters and risks were properly disclosed and you chose not to read the disclosure materials.  The fact that a possible and anticipated negative event occurred for which the investor was not prepared due to their lack of due diligence by not even reading the disclosures offered does not equate with a “rip off”.  
    There are plenty of rip offs in the investment world.  And when they’re uncovered the attendant publicity is huge, IF the resultant loses are large enough.  The problem is the waters are muddied when a negative occurs with the investment that is in no way the result of dishonesty or incompetence; it’s merely the revealing of the probability of an outcome that has been properly disclosed as a possibility - yet the unsophisticated investor begins crying Ponzi scheme, theft, incompetence and every other accusation they can think of rather than considering the possibility that they made an investor with higher risk than a money market fund. 
    I’ve invested relatively small amounts in “flyers”, and because the invested amount was small in relation to my overall portfolio chose not to perform a thorough due diligence.  When a loss was incurred I accepted it as a cost of investing without thorough investigation and or the percentage probability of an unprofitable outcome.  Of course outright theft or dishonesty on the part of the sponsor or investment advisor is a completely different matter. 

    Right: but what about the dozens of contracts and hard money loans that are in default without extension or remedy. Just read the BBB reviews, Google. The fund itself is separate than these individual contracts. Note, as other folks pointed out and even a case filed recently in FL (Stark vs RAD) …the notes are not hard money or backed by any property.  No one is screaming fraud or theft. The fact that they are telling people otherwise is morally questionable for any investor or inner circle wannabe.  If they’re so hard pressed to preserve cash, why is the retreat in Puerto Rico? Why is money being spent on useless swag. Why fly the whole family with you. 


     Here is that case if anyone is interested as its public records. My bigger question is: 

    do people NOT have an attorney review what they sign before they sign it. This note looks like it was written by a third grader.

    Its like luring a kid with a lollipop when these sponsors throw out these returns that are just unimaginable. 


    Case Detail (polkcountyclerk.net)


     Well, that was fast.

    1Reply
  • Robert Geraghty
    Member since 2024 · 1 post · 1 vote
    2y

    Arthur, Greetings from Maine!

    Below is part of the SEC Statement RADD put out, which you noted.  My question is did RADD make any formal statement on July1st regarding their Redemption Program?

    I haven't heard anything.

         "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."

    1Reply
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