Has anyone had experience with EquityBuild Finance?

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Lindsay Hirsch
Buffalo Grove, IL · Member since 2016 · 19 posts · 5 votes
10y

Please read the other threads @Darrell Odum. You should NOT invest with EquityBuild.

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  • Lindsay Hirsch
    Buffalo Grove, IL · Member since 2016 · 19 posts · 5 votes
    10y

    Please read the other threads @Darrell Odum. You should NOT invest with EquityBuild.

    1Reply
  • Shaun Cohen
    Real Estate Investor · Plano, TX · Member since 2009 · 21 posts · 2 votes
    10y

    @Darrell Odum

    Please read my response to Lindsay in the other thread she is referencing.

    0Reply
  • John Hatfiled
    Investor · Chicago, IL · Member since 2016 · 5 posts · 0 votes
    10y
    Originally posted by @Darrell Odum:

    I am thinking of investing with this company.  It's been discussed in this forum before a while ago.  Anyone with firsthand experience? 

     Darrell, I am now immersed inside of two deals with EquityBuild and have had nothing but a good, positive experience thus far. My rep has been really helpful along the way and the process has been actually easier than the properties I historically invested in with others over the years. I know that the team has multiple first-hand experience testimonials that they are willing to give you when you call as I spoke with a few investors before I did my initial investment. I hope that helps.

    0Reply
  • Darrell Odum
    OP
    Appraiser · Myrtle Beach, SC · Member since 2015 · 9 posts · 1 vote
    10y

    Thanks John. I don't think this is a scam, but I am concerned with the underwriting procedures for their properties. Mainly, we have to accept their internal opinion of value for the ARV (After-Repaired Value). I know that income-producing properites are valued by the NOI and Cap Rate, however, the LTV should be low enough to allow for a deal that goes south. If that happens, the value becomes more of a "quick-sale" value rather than a market sale. We have to accept a biased opinion of value in order to base all other factors. I haven't ruled out investing with them but I am just not comfortable with the underwriting protocol.

    0Reply
  • Anthony Rosado
    Investor · Sarasota, FL · Member since 2016 · 2 posts · 0 votes
    10y

    Hello my names is Anthony Rosado, I’ve invested in residential real estate for almost 30 years now. I’m currently involved with a property in Chicago through EquityBuild and I’m very satisfied with my investment and communications. I have a couple key people that I speak to in operations and Shaun has been great throughout the whole process. My note is coming due soon and the property is on track for stabilization.

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  • Erika Dietz
    San Francisco, CA · Member since 2016 · 1 post · 0 votes
    9y

    @Anthony Rosado, 6 months ago you mentioned your note was coming due.  Have you received your principle back?  The common theme I see among many of these threads is that interest payments come on time, just like clockwork.  But that when the note reaches maturity, there are issues with getting the final payout.

    If there are others on this forum that can share their experiences (good or bad) around whether they received their entire investment back in a timely fashion, that would be very helpful.

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  • Jean-marc Cabrol
    Investor · San Jose, CA · Member since 2017 · 5 posts · 0 votes
    8y

    Darrell, 

    I have invested on multiple mortgage notes with EBF and must say that I have been paid so far. However I need to add that it has been a constant and continued battle every month to get their statement straight :

    missing note(s), adjusted interest rate increase based on overall portfolio investment amount not paid, issues on re-investment dates ...

    The communication with their consultant is fine, however he appears to have to power to get things corrected once and for all. It is an extremely time consuming experience with limited to no communication.

    Shaun Cohen has to chime in after 4 months of escalations and helped correct only 1 issues I had, 2 more are not solved to this day related to contracts and statement updates.

    I have not been refunded yet from any note as I reinvested the only one arrived to maturity. This being said, I just received an email announcing the delay (6 months) on 3 notes, including one delayed since April 2017 now ...  a 16 month delay now with no visibility, which drives me to post here as my confidence in EBF to execute per their announced plan is diminishing. My patience has been exhausted long time ago and I would not recommend to invest with them.

    Food for thoughts and of course, I may be the exception. I do not know personally any other EBF investor.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Jean-marc Cabrol  from all the different post I have seen and private e mails I have gotten this is pretty much how these notes go... maturity comes and goes... lots of swapping out of beneficial interests which is replacing one investor with another on the same loan..  I suspect a lot of it is out of their control Chicago can be a very difficult city to rehab in if your not totally on it.. I know that for a fact.  But that does the investor no good.. 

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  • Igal Koiman
    Member since 2018 · 3 posts · 0 votes
    8y

    Wow based on multiple input from variety of reliable contributors looks like Mr.Cohen is fraud and swindler, who run financial pyramid scheme using new investor funds to pay off old investors. We start with EBF last February 2018 and so far nothing but problems, no statement, short pay or no pay at all like now. Need anyone advice how to get Mr. Cohen to start paying attention and refund what he embezzle. Is he even licensed or registered to sell investments ?  

    0Reply
  • Darrell Odum
    OP
    Appraiser · Myrtle Beach, SC · Member since 2015 · 9 posts · 1 vote
    8y

    This does not sound good.  It seems that the facts are coming out.  What is amazing is how long they have been doing this.  I was getting info from them for years before I finally decided to invest.  Worst decision of my life.  Please comment if you have any additional info, good or bad.

    0Reply
  • Jean-marc Cabrol
    Investor · San Jose, CA · Member since 2017 · 5 posts · 0 votes
    8y

    Here you go, as suspected for a while now, EquityBuild, EquityBuild Finance, Jerry Cohen and Shaun Cohen received on Aug 15th a complaint for running a Ponzi scheme from the SEC and all their assets are in the process of being frozen.

    Fraud smells extremely strong and I would advise to stay away from ANY activity with them.

    0Reply
  • Pat Marco
    Real Estate Attorney · Manhattan, NY · Member since 2014 · 129 posts · 106 votes
    7y

    @John Hatfiled

    https://www.housingwire.com/articles/46567-sec-shuts-down-equitybuild-claims-company-is-135m-real-estate-ponzi-scheme

    I hope you got your money back!

    0Reply
  • Pat Marco
    Real Estate Attorney · Manhattan, NY · Member since 2014 · 129 posts · 106 votes
    7y

    @Jean-marc Cabrol

    I am a retired tax attorney and I like to invest in real estate funds but I was suspicious of Equity Build offer and structure

    I invested in another company that paid 8% fixed with no fees - the principal and manager teaches real estate and has done deals from high end San Francisco to mixed use in Puerto Rico to small turnkey homes in Midwest etc

    His diversification by market and by type of property is what attracted me

    My money has been cross collateralized against all the fund’s assets

    You can private message me I can tell you about that company because they have been up and running for 10 years or just look for a similar company where youvtruly get to meet and know the owner

    0Reply
  • Kevin Tillery
    Investor · Elizabeth, NJ · Member since 2015 · 46 posts · 10 votes
    7y

    @Pat Marco

    Question: Does the seller pay taxes on an increased purchase price that's being used for buyer's closing costs via concessions?

    In other words, I'm buying a 4-unit and proposed raising the purchase price 6% to cover 6% of my closing costs. However, the seller is reluctant because she thinks she'll pay additional taxes. As result, we're at a stand still.

    0Reply
  • Lindsay Hirsch
    Member since 2018 · 7 posts · 3 votes
    7y

    Hi All. My name is Lindsay Hirsch. My father was EB's attorney over 9 years ago and had committed suicide in 2012, noting Jerry and Shaun Cohen as well as the Ponzi scheme in his suicide notes. I took the suicide notes to the FBI and SEC in 2012, and it took 7 years for any significant progress to be made. In the meantime, I know many investors have lost money. I just got off the phone with a prominent Chicago news station who is looking for any EquityBuild investors who have been affected from 2012-2019 and would like to share their story. Please message me with contact information I can pass along to the investigative team there. Thanks so much!

    0Reply
  • John Diggs
    Member since 2022 · 2 posts · 1 vote
    4y

    Here is someone that helped to promote EquityBuild Ponzi to Investors. 

    His name is Stephan Piscano. Here is one of many Webinars, which they did many to promote deals for EquityBuild.https://youtu.be/YhLlc_gYbf4

    He is still out here promoting deals. I can help but think how someone that contributed to so many people's financial ruin in continuing to be out here promoting webinars.

    Here is one here...https://register.gotowebinar.com/register/6120378021491955982

    His linkedIn Profile

    https://www.linkedin.com/in/stephanpiscano/

    bears a striking resemblance to Shaun Cohen!

    Curious if we can stop people like this...?

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