Anybody work with the STR syndication called Techvestor?

Question

I'm talking with Techvestor, a STR syndication.  It seems legit, but I'm not finding much info about them on here, which was a bit surprising.  Anybody familiar with them and investing with them already?  Can you offer any feedback on what it's like to work with them?  I'm considering getting in on their next round but going through due diligence and would appreciate any feedback I can get.  Thanks!

Michelle Chan · Answer

Owners of Techvestor used to run Scoutpads - another RE investment company that  defrauded hundreds of people. You can find more details in this post: https://www.biggerpockets.com/...

Michael Baum · Answer

Hey @Andrew Angell, so I have been reading about this and I see a few things that concern me somewhat

One is that they don't own that many properties to support the returns they are promising. It appears they have about 18-20 properties. For someone who is nationally syndicating this plan with potential thousands of investors, that isn't nearly enough to support 12%+ return they are promising.

Each listing appears to be listed by a couple, not a company. That is fine, but a bit shady. Guests think they are getting into a place that a couple owns vs part of a company portfolio. I could be an issue. Not sure though why anyone would care if it is run well, but there it is.

The final part and why I would stay away, the CEO Sief Khafagi left his last venture, Scoutpads.com suddenly. It appears he left investors holding the bag with everyone losing their dough. There are several articles on it.

EDIT - They appear to own 33 properties. Still not enough IMHO. Plus I have read that they require a minimum of 25k down but a annual income of over 200k to participate.

Andrew Angell · Answer

Thanks for your feedback!  I'll do some more research on what happened with Scoutpads.  Some are showing it was shady, and others are showing it was a legit restructuring.  Maybe that's them trying to save face.  I'll check deeper.

As for the $200k income, I think that is just part of the accredited investor qualification isn't it?  This would be the same with pretty much any syndication that requires accreditation, wouldn't it?

Bill B. · Answer

I guess you could rate them on their past successes, 0. Their past failures, 1. Or their integrity. Are they using their profits from this venture to pay back the people who lost money in their first failure? That would go a long way for me. Rule #1 should always be don’t lose other people’s money, especially while you’re making money.

I would say today is a much harder time to run a syndication than when they failed.  That’s not a good sign.

Will Pine · Answer

The the past investment result of Scoutpads and its owners and how the investors got screwed. Please see these posts:

https://www.reddit.com/r/reale...

https://www.reddit.com/r/Short...

In short, at least 18 million dollars are missing  for the investors who bought investment sold by scoutpad and metallic blue development LLC. See the details in this court case:

https://unicourt.com/case/pc-bk5-metallic-blue-development-llc-2058799.

Michael Baum · Answer

Hey @Andrew Angell, there is more to accredited investors than the 200k but that is part of it. I didn't read anything about being accredited for Techvestor.

average yearly income over $200,000 or working in the financial industry.

(or more) requirements regarding income, net worth, asset size, governance status, or professional experience.

normal disclosures that come with SEC registration

Anybody work with the STR syndication called Techvestor?

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