REIT investing - Good or bad idea
Real Estate Agent · Atlanta, GA · Member since 2020 · 18 posts · 8 votes
I recently saw an add or a post about Rad Diversified. It's a REIT and they claim their return was 36% last year. They specialize in tax deed purchases, rehab, tenant occupy then cash out and refi and repeat the process. Anyone have any experiences with them?
They're taking massive fees 2% on assets they manage, 20% on increases in net asset value, large salaries for only $7-8m assets, they are self dealing with a $2m in promissory notes that pay Dutch's other entities 10.95% interest.
i think the 36% return might be before all these fees or for his 3 other entities that lent the company money at a very high rate.
source: their sec filings https://sec.report/CIK/0001721...
I'll keep you posted - just put a small investment ($1,000) in it this week to see.
A lot of haters towards RAD-DIVERSIFIED. They've had excellent returns Net of fees, you aren't committed to stay in the fund, and it's as safe as other REIT's like Fundrise. I've been with them for over a year and a half, just put $25K in to see how they do before making a serious investment. Responses stating even a mediocre rental property deal will outperform REIT's is way off. I've seen many poor investments made with single digit cap rates and even negative cash flows in hopes of getting great appreciation.
I've purchased mainly SFH's for the past 30 years. Started out at 19 not knowing much and buying on land contract with down payments from credit cards. Today I have 48 homes but starting to reduce my portfolio in some areas and looking for completely passive income streams. CrowdStreet has been great, some projects require up to $50K down with most at $25K. CrowdStreet has never had a losing deal since inception and I've cashed out deals in the mid 20's, not bad for investments secured by multi-family. They require between 3 and 5 years on average and you can't sell early but solid company. Just looking for alternatives besides public REIT's like Essex ESS which was the highest returning publicly traded REIT from 1994 until 2020 averaging around 17% (I don't have the exact number but it's close) and Prologis PLD. So trying non traded public REIT's and Crowdfunding. So far I've invested with CrowdStreet, RAD-DIVERSIFIED, Caltier, Arrived Homes and Realty Mogul. No losses but not a long track record. Looking only for deals that will return 20% plus.
I know I won't beat the returns on my rental properties, purchased in preforeclosure at minimum discount of 20% below appraisal and I do cosmetic rehab, rent, refi and repeat. With discount at purchase plus rehab plus rent increases and appreciation, many homes have returned well over 30% ROI over several years.
With a good chance of a recession coming, have cash available to take advantage of the best deals to hit the market in years. These opportunities come up only a few times in a lifetime. So be prepared.
Let's just say I wouldn't get sucked into a REIT discussed on any real estate investor forum. Your decision to buy should come from a qualified investment advisor paid by you. Good luck!
I'll keep you posted - just put a small investment ($1,000) in it this week to see.
Hi David, would you mind sharing any update with us? Curious to know how has RAD Diversified been performing for you.
Thanks!
I just put $10k with them. They seem legit but I am curious to see the real returns.
Hey Dan, would love to know how it's been performing for you.(considering putting some money with them)
thanks!
I'll keep you posted - just put a small investment ($1,000) in it this week to see.
Hi David, I'm following up on old messages and posts and saw yours above. How did (is) it going?
Dona Cardenas
I just put $10k with them. They seem legit but I am curious to see the real returns.
Hi Dan,
I'm following up on old messages and posts and saw yours from 2 years ago. I was wondering out your investment was going.
A lot of haters towards RAD-DIVERSIFIED. They've had excellent returns Net of fees, you aren't committed to stay in the fund, and it's as safe as other REIT's like Fundrise. I've been with them for over a year and a half, just put $25K in to see how they do before making a serious investment. Responses stating even a mediocre rental property deal will outperform REIT's is way off. I've seen many poor investments made with single digit cap rates and even negative cash flows in hopes of getting great appreciation.
I've purchased mainly SFH's for the past 30 years. Started out at 19 not knowing much and buying on land contract with down payments from credit cards. Today I have 48 homes but starting to reduce my portfolio in some areas and looking for completely passive income streams. CrowdStreet has been great, some projects require up to $50K down with most at $25K. CrowdStreet has never had a losing deal since inception and I've cashed out deals in the mid 20's, not bad for investments secured by multi-family. They require between 3 and 5 years on average and you can't sell early but solid company. Just looking for alternatives besides public REIT's like Essex ESS which was the highest returning publicly traded REIT from 1994 until 2020 averaging around 17% (I don't have the exact number but it's close) and Prologis PLD. So trying non traded public REIT's and Crowdfunding. So far I've invested with CrowdStreet, RAD-DIVERSIFIED, Caltier, Arrived Homes and Realty Mogul. No losses but not a long track record. Looking only for deals that will return 20% plus.
I know I won't beat the returns on my rental properties, purchased in preforeclosure at minimum discount of 20% below appraisal and I do cosmetic rehab, rent, refi and repeat. With discount at purchase plus rehab plus rent increases and appreciation, many homes have returned well over 30% ROI over several years.
With a good chance of a recession coming, have cash available to take advantage of the best deals to hit the market in years. These opportunities come up only a few times in a lifetime. So be prepared.
Hi Nick,
I'm following up on old messages and posts and saw yours from a year ago. I was wondering out your REIT investments are going. Where are the properties you mentioned that you are wanting to sell? Have you sold them yet? Could I PM you? I'd love to find out a little more if you are willing to share, about your suggestions for someone just getting started, albeit late in life.
I just put $10k with them. They seem legit but I am curious to see the real returns.
Hi Dan,
I'm following up on old messages and posts and saw yours from 2 years ago. I was wondering out your investment was going.
That $10,000 is now $16,000 so yes, it is as advertised!
Final Net Value of Shares
Held as of July 11, 2023:
16,000.56
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.
I just put $10k with them. They seem legit but I am curious to see the real returns.
Good luck getting your money back. They just put a lock on investor withdrawals April 1st, 2024 and lost their BBB accreditation due to the whole debacle. The January 2024 withdraws were never disbursed. I tried to withdraw my $5k after two years and was told withdrawals were on freeze until they decide otherwise.
As a former employee's close confidant, this company is an absolute scam with zero loyalty to its long-term employees, let alone investors. They filed for Chapter 11, but it was denied because they owe their employees money and refuse to pay them. As the owners, Dutch and Amy, pocket the money from their illegal activities to fund their lavish lifestyles, they continue to take advantage of everyone else. They use the money they defraud people out of to funnel it through the business, covering their outlandish living expenses. As investors who have been screwed by them and former employees try to recov er their money, Dutch is going on cruises for his wedding anniversary and for holidays while Amy goes on lavish outings and recently came back from the Bahamas. They claim to be god-fearing, good people, but in reality, none of them has stepped foot in a church and would set it on fire if they did. They live immoral and thieving lives. Dutch and Amy are facing prison time for how they have cheated within their company, while they continue to act like all is good and well, while trying to con unknowing and loyal investors into new start-ups to fund their lavish lifestyles with no intention of doing good with it.
These are not the kind of people you want to invest with or have handle large amounts of money. They both suffer from narcissism and care more about money and their image than doing right by people. They mistreat even the ones closest to them, including family. The co-owner, Amy, adopted a son but has never treated him properly. Yet, she goes on stage and gushes about him as her "why" and talks about all the stuff she does for adoption companies (NOT TRUE) as she walks off, and is far from a mother. In her personal life, she is involved with someone who deals drugs, as they do drugs and are involved in illegal activities. The cops in the area know the guy, he is a career criminal who has held a gun to employees and at her, yet he is still involved in her business dealings and in her house. She uses company money to pay her boyfriend a ridiculous weekly amount (2500 per week) as an employee, even though he does absolutely nothing for the company. Dutch does the same for his own family members. They run an illegal gambling ring in one of the company's commercial buildings. There are many things I could say, but we will be here all day. Hopefully, this gives you a picture of who you would be investing your money in. Amy's adult son currently has a criminal case for molesting a small child of one of her long time employees and she spends her time hiding his behaviors, blaming and indirectly threatening the victim and the victims family rather than being a decent human being (not so Godly eh?) while spending tons of INVESTOR money for his defense so she can save face for the next scheme they are currently working on.
This company owes a ton of good, hard-working, and loyal people money, and they fired them and refuse to pay them the many weeks' worth of pay they owe them. If they can do that to their long-term employees, whom they supposedly form strong bonds with, imagine what they can do to someone they just see as a dollar sign. The company owes many people a lot of money with no way or intention to pay it back. DO NOT invest your money here or with Dutch Mendenhall or Amy Vaughn (Also can go by other aliases such as Amy Whit-Vaughn, Amy Whitson, Amy Whitson-Vaughn) unless you never want to see your money again and want to get tied into fruitless legal battles. They just look for the next start-up scheme to fund their lavish lifestyles until that well runs dry, and then rebrand themselves and do it all over again. This is not the first time, and it will not be the last unless those involved speak up and report them until the government has to listen. There's so much more I could say and have receipts for, but I'll leave it at that. If you want or need more information to help, reach out to me on this forum. I am just someone with insider information who is sick and tired of watching them cheat and abuse the system and hurt and steal from good people.