Rad Diversified Feedback Request
Investor · Bucks County · Member since 2023 · 196 posts · 156 votes
Rad Diversified Feedback Request
Most Popular Reply
Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes@Mike Hurney What do I possibly get out of fabricating a statement a RAD fundraising consultant shared with me? When a real estate company takes money from 8,000 investors and has purportedly made everyone money doesn't that seem suspicious? Especially in real estate where contingencies come up that even the most seasoned of real estate investors don't expect? I can understand a flawless track record with a limited sample size but with 8,000 investors? I just opened their March 2023 circular available through their website and while the circular does not offer full addresses for all properties, I gravitated towards zip codes that I am personally active in within the Philadelphia market. One of the properties is titled "W Pomona St, Philadelphia PA 19144 and lists the purchase price of $192,000.00. There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels. There's one house titled to Rad Diversified REIT Inc and it was nominally transferred from an affiliate company for $1. Previously the property was purchased by the affiliate DHI Fund LP for $58,000 in 2018. I checked to see if there was any other home which sold for $192,000, just in case I might have missed a transfer involving an entity that I did not recognize as a Rad affiliate and there are none. This took me less than 10 minutes. Would you classify this as first hand knowledge or do I need to personally lose money for that to qualify? This exercise was merely to prove a point. I could have told you the gist of this post before even opening the circular based on the comment you dismissed as "hearsay".
33 Replies
- 2yMelanie P.Pro MemberRental Property Investor · Member since 2023 · 1k+ posts · 922 votes
I found it amusing how they put a photo of everyone who has ever worked for them on their website and 90% of them seem to be involved in fundraising and internet marketing activities around 10% in real estate.
What about it appeals to you? Just like the high pressure "inner circle" guy who calls you on the phone? His or her picture is probably on the site. LOL!
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Sebastian Bennett:
Has anyone had business dealingsw with Rad Diversified? Particularly interested in those who have invested in their REIT or alternatively have participated in their inner circle investment opportunities.
Check this post. Also I would do some research on what is expected of REIT's in 2024 and beyond. Quick google search will tell you (insight: the future does not look bright right now)
REIT investing - Good or bad idea (biggerpockets.com)
7e investments53 Reviews - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Chris Seveney:
Quote from @Sebastian Bennett:
Has anyone had business dealingsw with Rad Diversified? Particularly interested in those who have invested in their REIT or alternatively have participated in their inner circle investment opportunities.
Check this post. Also I would do some research on what is expected of REIT's in 2024 and beyond. Quick google search will tell you (insight: the future does not look bright right now)
REIT investing - Good or bad idea (biggerpockets.com)Note I have not invested with them, just sharing what has already been posted on BP.
RAD Diversified Review — It Wasn't Pretty (biggerpockets.com)7e investments53 Reviews - Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes2y
At RAD Diversified, we offer investment partners the opportunity to invest in income-producing farms and cash-flowing properties like residential & multi-family with substantial value-add opportunities. If you're keen to learn more, feel free to reach out! We'd be delighted to connect you with one of our team members who can provide more details about us and address any questions you might have.
- 2yMelanie P.Pro MemberRental Property Investor · Member since 2023 · 1k+ posts · 922 votes
Quote from @Dutch Mendenhall:
At RAD Diversified, we offer investment partners the opportunity to invest in income-producing farms and cash-flowing properties like residential & multi-family with substantial value-add opportunities. If you're keen to learn more, feel free to reach out! We'd be delighted to connect you with one of our team members who can provide more details about us and address any questions you might have.
And according to one poster here, promissory notes. With all your fundraisers I guess there's never a reason to turn down money. Can always find some vehicle to accept it.
- Investor · Bucks County · Member since 2023 · 196 posts · 156 votes2y
@Dutch Mendenhall If I were to purchase shares I see the share price continues to increase which I assume is based on the value of the real estate. Who is responsible for valuing the real estate that is part of your REIT? Also, appears in Philadelphia you use hard money debt to finance your properties? With all of the capital behind you, why aren't you using less expensive bank originated financing?
- Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes2y
Quote from @Sebastian Bennett:
@Dutch Mendenhall If I were to purchase shares I see the share price continues to increase which I assume is based on the value of the real estate. Who is responsible for valuing the real estate that is part of your REIT? Also, appears in Philadelphia you use hard money debt to finance your properties? With all of the capital behind you, why aren't you using less expensive bank originated financing?
Great question, Sebastian! We use several sources to value the real estate in our REIT. Most of our properties have had a full appraisal upon purchase or refinance. We then use an internal 3 comp approach for residential properties, an income approach on commercial properties, and a hybrid approach on farms. After, we use an outside third-party company to check all values and utilize a revalue on anything more than 5% away from our estimated value.
I’m happy to use any resource with better rates to finance our properties. We always want to get the best financing available.
- Investor · Bucks County · Member since 2023 · 196 posts · 156 votes2y
@Dutch Mendenhall so you do self-value your assets. Thanks for clarifying. Seems like there is very little oversight and question if all of your assets were sold how your shareholders would make out.
- Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes2y
Quote from @Sebastian Bennett:
@Dutch Mendenhall so you do self-value your assets. Thanks for clarifying. Seems like there is very little oversight and question if all of your assets were sold how your shareholders would make out.
Our appraisals are made by licensed professionals, along with our third-party valuations and third-party auditors. We started at a $10 share price and are now at $25.04! Our shareholders have made out well thus far!
- 2yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Sebastian Bennett @Chris Seveney I have not invested, but checked them out. One of their fundraising consultants informed me "every investor at Rad has made money" and they have over 8,000 investors. I can tell you right now, this will end badly for some.
- 2yMike HurneyPro MemberReal Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 542 votes
Hey Buddy,
I remember when BP would be helpful. Not one of these Posts has 1st knowledge (heresay?) & how have you "checked them out." with a quote from their consultant, then you cast aspersions?
Reminds me of a relative with nothing, that gives you advice... "I know a guy at work who's Cousins, Uncles, Aunts, Mother did it and lost everything in Real Estate, I wouldn't do it!"
Me "Well if you know all that let's work together and you can show me what to avoid;-)"
relative "I'm busy, I'll get back to you later..." :-|
I'd go to your state Division of Banks & Secretary of State, looking for their Licenses, Filings and maybe Complaints. Maybe start small, if at all?
I like Seller Financing.
- 2yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Mike Hurney What do I possibly get out of fabricating a statement a RAD fundraising consultant shared with me? When a real estate company takes money from 8,000 investors and has purportedly made everyone money doesn't that seem suspicious? Especially in real estate where contingencies come up that even the most seasoned of real estate investors don't expect? I can understand a flawless track record with a limited sample size but with 8,000 investors? I just opened their March 2023 circular available through their website and while the circular does not offer full addresses for all properties, I gravitated towards zip codes that I am personally active in within the Philadelphia market. One of the properties is titled "W Pomona St, Philadelphia PA 19144 and lists the purchase price of $192,000.00. There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels. There's one house titled to Rad Diversified REIT Inc and it was nominally transferred from an affiliate company for $1. Previously the property was purchased by the affiliate DHI Fund LP for $58,000 in 2018. I checked to see if there was any other home which sold for $192,000, just in case I might have missed a transfer involving an entity that I did not recognize as a Rad affiliate and there are none. This took me less than 10 minutes. Would you classify this as first hand knowledge or do I need to personally lose money for that to qualify? This exercise was merely to prove a point. I could have told you the gist of this post before even opening the circular based on the comment you dismissed as "hearsay".
- Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes2yWe understand your concerns regarding the statement made by one of our consultants regarding the success of RAD. While we strive to provide transparent and accurate information to all potential investors, it's important to clarify that no investment is without risk. While we are proud of the track record of success that many of our investors have experienced, we cannot guarantee similar outcomes for every individual. Market conditions, economic factors, and other variables can impact investment performance. We encourage all potential investors to conduct thorough due diligence, assess their own risk tolerance, and consult with financial professionals before making any investment decisions.
Quote from @Stuart Udis:
@Sebastian Bennett @Chris Seveney I have not invested, but checked them out. One of their fundraising consultants informed me "every investor at Rad has made money" and they have over 8,000 investors. I can tell you right now, this will end badly for some.
As for our number of investors, we are fortunate to have a large and diverse investor base. We value each and every one of our investors and work diligently to provide them with opportunities for growth and success. - 2yMelanie P.Pro MemberRental Property Investor · Member since 2023 · 1k+ posts · 922 votes
Quote from @Stuart Udis:
@Mike Hurney What do I possibly get out of fabricating a statement a RAD fundraising consultant shared with me? When a real estate company takes money from 8,000 investors and has purportedly made everyone money doesn't that seem suspicious? Especially in real estate where contingencies come up that even the most seasoned of real estate investors don't expect? I can understand a flawless track record with a limited sample size but with 8,000 investors? I just opened their March 2023 circular available through their website and while the circular does not offer full addresses for all properties, I gravitated towards zip codes that I am personally active in within the Philadelphia market. One of the properties is titled "W Pomona St, Philadelphia PA 19144 and lists the purchase price of $192,000.00. There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels. There's one house titled to Rad Diversified REIT Inc and it was nominally transferred from an affiliate company for $1. Previously the property was purchased by the affiliate DHI Fund LP for $58,000 in 2018. I checked to see if there was any other home which sold for $192,000, just in case I might have missed a transfer involving an entity that I did not recognize as a Rad affiliate and there are none. This took me less than 10 minutes. Would you classify this as first hand knowledge or do I need to personally lose money for that to qualify? This exercise was merely to prove a point. I could have told you the gist of this post before even opening the circular based on the comment you dismissed as "hearsay".
Hopefully @Dutch Mendenhall can provide an explanation as to why this is listed as an asset but not corroborated in the title records.
- Investor · Tampa, FL · Member since 2020 · 27 posts · 0 votes2yI appreciate your attempt to protect people. We have fought for a lifetime to provide investors with a proven, reliable, trusted resource with a proven historical track record. Real Estate is hard, and nothing goes perfectly. We’ve had a house fraudulently stolen, 10 West Pmona had a professional squatter, and rehabbing costs, contractors, banks, and more can be a challenge. We do own the Pomona property (https://property.phila.gov/?p=593090600) along with hundreds of other properties in the Philly area. Our investors have also enjoyed our stock going from $10 to $25.04. We are far from perfect, but we always fight hard for our investors. Also, our team and staff are incredible people who deserve great acknowledgment for all they do for our investors. I believe in our company, our people, and our investors!
Quote from @Melanie P.:
Quote from @Stuart Udis:
@Mike Hurney What do I possibly get out of fabricating a statement a RAD fundraising consultant shared with me? When a real estate company takes money from 8,000 investors and has purportedly made everyone money doesn't that seem suspicious? Especially in real estate where contingencies come up that even the most seasoned of real estate investors don't expect? I can understand a flawless track record with a limited sample size but with 8,000 investors? I just opened their March 2023 circular available through their website and while the circular does not offer full addresses for all properties, I gravitated towards zip codes that I am personally active in within the Philadelphia market. One of the properties is titled "W Pomona St, Philadelphia PA 19144 and lists the purchase price of $192,000.00. There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels. There's one house titled to Rad Diversified REIT Inc and it was nominally transferred from an affiliate company for $1. Previously the property was purchased by the affiliate DHI Fund LP for $58,000 in 2018. I checked to see if there was any other home which sold for $192,000, just in case I might have missed a transfer involving an entity that I did not recognize as a Rad affiliate and there are none. This took me less than 10 minutes. Would you classify this as first hand knowledge or do I need to personally lose money for that to qualify? This exercise was merely to prove a point. I could have told you the gist of this post before even opening the circular based on the comment you dismissed as "hearsay".
Hopefully @Dutch Mendenhall can provide an explanation as to why this is listed as an asset but not corroborated in the title records.
- Investor · District Heights, MD · Member since 2017 · 12 posts · 5 votes2y
@Dutch Mendenhall I appreciate you or your spokesperson addressing comments here. That makes me feel better in possibly investing with the Inner Circle. This platform is just for these types of conversations and I appreciate it being an free available resource.
- Investor · Bucks County · Member since 2023 · 196 posts · 156 votes2y
@Dutch Mendenhall I appreciate your willingness to roll up your sleeves and communicate through these forums, but you never answered the valuation question concerning Pomona.
- 2yChris TessmannPro MemberRental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
Hey @Dutch Mendenhall,
I responded to an older post earlier this afternoon, but found this one, noticed you had been more recently active in it, and wanted to reach out here as well in the hopes that we can get this resolved ASAP.
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 (as stated in the older post), I would appreciate you seeing to it that this isn't delayed any further.
Thank you. - 2yChris TessmannPro MemberRental Property Investor · Spring Branch, TX · Member since 2017 · 23 posts · 17 votes
@Dutch Mendenhall wanted to check in again here as well. Any hope for a response?
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
@Chris Tessmann
I have not invested in Rad so I will frame from any comment since I do not have the experience.
The reason I am writing this post is for others who are looking to invest in an offer, one of the most underrated questions “:
How do you manage your Investor Relations? Do you have an internal Investor Relations person or manager? Who is your Fund manager if it is outsourced, and who do I talk to if I have questions?
The staff composition of most companies is to have those individuals who make money. When it comes to things like Investor Relations, many fall short because they are not money makers and it can be outsourced. The issue without sourcing it is those larger companies have hundreds of clients and nobody ever looks out for your best interest better than you.
7e investments53 Reviews - Member since 2022 · 1 post · 2 votes2y
I am a stock investor that sold my shares in January 2023. I was due to receive my liquidation in January of 2024 for those who sold between Jan through July (per RADD contract). I have yet to receive my funds. I was told some song and dance. This is a breach of contract. My small 10% return is now diminishing every day you hold on to it. Your business model cannot be sustained. This is similar to a ponzi scheme. I dont recommend anyone to invest with RADD if you ever want to see your money again. This is an issue thousands of other investors are facing. DO NOT INVEST!!!!!!! Claims have been filed with the SEC and state regulators.
@Dutch Mendenhall what is your response to this? You need to pay your investors as promised even if you need to liquidate your personal assets. This is unacceptable.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Mark Morrison:
I am a stock investor that sold my shares in January 2023. I was due to receive my liquidation in January of 2024 for those who sold between Jan through July (per RADD contract). I have yet to receive my funds. I was told some song and dance. This is a breach of contract. My small 10% return is now diminishing every day you hold on to it. Your business model cannot be sustained. This is similar to a ponzi scheme. I dont recommend anyone to invest with RADD if you ever want to see your money again. This is an issue thousands of other investors are facing. DO NOT INVEST!!!!!!! Claims have been filed with the SEC and state regulators.
@Dutch Mendenhall what is your response to this? You need to pay your investors as promised even if you need to liquidate your personal assets. This is unacceptable.
Mark
I have no affiliation with Rad at all (just want to start with this clarification). I applaud you for coming out and letting people know of your experience, which completely sucks.
I do want to make some clarification as there are a lot of new investors on BP and all should understand several things when investing:1. When people have a negative experience or even potentially lose money in a deal, their knee jerk reaction is to throw out scam or ponzi. This is rarely the case - it could be a bad deal for numerous reasons from bad sponsor, to bad management to bad economic conditions. Investors need to be aware, these types of offerings have no guarantee or promise.
I commented on another post recently where the website says "secured mortgages" which is what the sponsor invests in, but when you read the fine print your investment is unsecured. More education is absolutely needed on this topic of investing with others.
Second: the sponsor also typically does not need to liquidate their personal assets. The investment is a risk and some may or may not receive their monies back.
To illustrate my ccomment: if you invested in Tesla stock four months ago, it has gone down - no one is screaming ponzi.
Yep this sucks and sorry you have to go through this, hopefully it gets resolved.
7e investments53 Reviews - Investor · District Heights, MD · Member since 2017 · 12 posts · 5 votes2y
This is a good response and reminder that there is no guarantee with all the different factors. Everybody wants to win or feel like they came out on the winning side and there are times when some won’t. It’s the reality and that’s stated in there information/documents. I’ve decided not to invest in with them at this point.
- 2yMelanie P.Pro MemberRental Property Investor · Member since 2023 · 1k+ posts · 922 votes
Quote from @Ti'Keya Williams Lawrence:
This is a good response and reminder that there is no guarantee with all the different factors. Everybody wants to win or feel like they came out on the winning side and there are times when some won’t. It’s the reality and that’s stated in there information/documents. I’ve decided not to invest in with them at this point.
You've decided to invest in with who?
- Investor · District Heights, MD · Member since 2017 · 12 posts · 5 votes2y
I did not invest with them. I am still researching options.
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