Anyone fund a note with Safeguard Capital Partners?
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Member since 2022 · 5 posts · 5 votes
2yI have worked with Safeguard Capital Partners as a lender for about 5 years and it has been a complete nightmare. Not only horrible investments, but a complete waste of money and time. I have seven loans outstanding with them and have been forced to foreclose on four of them. The attorneys and title companies I've been forced to deal with during the foreclosure process have also told me they are shocked by Safeguard's incompetence.
40 Replies
- Member since 2022 · 8 posts · 0 votes2y
Jamie,
I am working with CR of Maryland to unload these foreclosure properties. Just curious if you have any knowledge of them, or experience working with them.
- 2yTom GimerBusiness MemberDMV · Member since 2017 · 3k+ posts · 3k+ votes
@Greg Loberg I have experience working with them but on the title side.
They're based in Martinsburg, WV. Small shop, good people.
Gimer Law516 Reviews - Member since 2022 · 8 posts · 0 votes2y
Tom,
I have been in contact with dozens of investors like myself that lost a lot of our investment capital via lending notes set up through Safeguard Capital Partners LLC. From the investor side, we have a lot of issues with how these note investments were presented to us by Safeguard. Many of us feel that Safeguard misrepresented investment opportunities in undesirable areas. They talked a good story, but their investor support was very lacking.
- Member since 2022 · 5 posts · 5 votes2y
I have worked with Safeguard Capital Partners as a lender for about 5 years and it has been a complete nightmare. Not only horrible investments, but a complete waste of money and time. I have seven loans outstanding with them and have been forced to foreclose on four of them. The attorneys and title companies I've been forced to deal with during the foreclosure process have also told me they are shocked by Safeguard's incompetence.
- Member since 2022 · 8 posts · 0 votes2y
Daniel,
My foreclosure attorney voiced the same concern about Safeguard. He said that he had never seen investor notes this poorly constructed to limit the rights of the investor. It is truly a nightmare investing with them.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Daniel,
My foreclosure attorney voiced the same concern about Safeguard. He said that he had never seen investor notes this poorly constructed to limit the rights of the investor. It is truly a nightmare investing with them.
So what can be learned from this? I am curious how many investors had an attorney review the agreement, the note and reviewed the asset/property? This is extremely unfortunate and I think the name does not match their product, but there will be many others out there that do the same - so what can we take and learn from this as well?
7e investments53 Reviews - Member since 2022 · 8 posts · 0 votes2y
Prior to my experience with Safeguard Capital Partners, I was a buyer of distressed multi-family properties in my immediate neighborhood in St. Louis, MO. I personally inspected the properties, managed and participated in the rehab, interviewed and placed tenants under lease, and performed all of the ongoing maintenance and management of the rentals. Safeguard reached out to me when I was in my mid 60s, and offered lending notes secured by real estate. They made it sound like a very safe and secure investments. I sold off my portfolio of rental properties, and invested the capital in 60-month notes through Safeguard. I had about a dozen notes in various states. I have spent hundreds of hours on the phone with Safeguard, attorneys, other investors and real estate professionals dealing with non performing notes and deteriorating real estate. By the time I unload the last of the Safeguard note properties that I foreclosed on, I will have incurred a loss of more than $150,000 through note investments with Safeguard. The lesson that I have taken away from this experience is to do everything yourself, and to not put your faith and trust into anyone. It has been a very expensive lesson.
- Member since 2022 · 5 posts · 5 votes2y
Quote from @Chris Seveney:
Daniel,
My foreclosure attorney voiced the same concern about Safeguard. He said that he had never seen investor notes this poorly constructed to limit the rights of the investor. It is truly a nightmare investing with them.
So what can be learned from this? I am curious how many investors had an attorney review the agreement, the note and reviewed the asset/property? This is extremely unfortunate and I think the name does not match their product, but there will be many others out there that do the same - so what can we take and learn from this as well?
Good question, Chris. I agree with Greg, one lesson is to do everything yourself. Another lesson is to research companies online and in forums like this before you do business with them and if you decide to do business with someone, dip your toe in the water slowly and continue to research the company after you start working with them, because things can change quickly.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2yI have some questions:
Quote from @Dan Liston:
Quote from @Chris Seveney:
Daniel,
My foreclosure attorney voiced the same concern about Safeguard. He said that he had never seen investor notes this poorly constructed to limit the rights of the investor. It is truly a nightmare investing with them.
So what can be learned from this? I am curious how many investors had an attorney review the agreement, the note and reviewed the asset/property? This is extremely unfortunate and I think the name does not match their product, but there will be many others out there that do the same - so what can we take and learn from this as well?
Good question, Chris. I agree with Greg, one lesson is to do everything yourself. Another lesson is to research companies online and in forums like this before you do business with them and if you decide to do business with someone, dip your toe in the water slowly and continue to research the company after you start working with them, because things can change quickly.
1. Were these originally performing loans that went non performing?
2. What was the LTV on these assets?
3. Who was servicing these loans?
4. Were you able to review the collateral and review who the borrower was?
Reason I ask is in note investing it is actually usually pretty difficult to lose money consistently, thus the questions.7e investments53 Reviews - Member since 2022 · 5 posts · 5 votes2y
1. Yes.
2. 50% - 60%
3. Safeguard Capital Partners with Zimple Money.
4. Yes.
Technically, I have not lost money yet. I don't have time to keep going back and forth here; you are welcome to contact me directly for additional details. Summary: 7 loans outstanding: 4 in foreclosure, 1 in default - trying to develop a plan before I begin foreclosing, 1 current, but has needed multiple payoff extensions, 1 current with no issues. Possibly lower returns than projected because of statutorily mandated interest rates following court judgements. Many hundreds of wasted hours, that if included, would wipe out a significant amount of earnings.
- Member since 2022 · 8 posts · 0 votes2y
Dan,
It sounds like you and I have been in similar situations with Safeguard non-performing notes. I would like to discuss it with you if you have the time. How can I reach you?
- Member since 2022 · 8 posts · 0 votes2y
I closed on the sale of one of my Safeguard note properties in Baltimore today. I took the property through foreclosure due to the non-performing note. There were no bids to purchase it at auction. I sold it to CR of Maryland for $35,000. After paying seller closing costs and foreclosure attorney fees, I expect to receive approx. $16,000. My investment in the Safeguard originated note was $60,000, so my loss is approx. $44,000. Plus, I was not receiving interest income for about 3 years of the 5 year note. I have another note through Safeguard on another Baltimore property that went through forclosure last year. I am still waiting for the Court to sign off on the sale ratification, before my foreclosure attorney can get the title transferred and recorded. I am looking for a buyer for that property. There has been a squatter living in it for about 3 years, that refuses access to anyone that I have sent out there to assess the property.
Safeguard personnel stopped communication with me last year. They will not respond. My recommendation from experience is to avoid working with Safeguard. I have lost well over $100,000 on notes originated with Safeguard Capital Partners LLC.
- Member since 2022 · 5 posts · 5 votes1y
Quote from @Chris Seveney:
I have some questions:Quote from @Dan Liston:
Quote from @Chris Seveney:
Daniel,
My foreclosure attorney voiced the same concern about Safeguard. He said that he had never seen investor notes this poorly constructed to limit the rights of the investor. It is truly a nightmare investing with them.
So what can be learned from this? I am curious how many investors had an attorney review the agreement, the note and reviewed the asset/property? This is extremely unfortunate and I think the name does not match their product, but there will be many others out there that do the same - so what can we take and learn from this as well?
Good question, Chris. I agree with Greg, one lesson is to do everything yourself. Another lesson is to research companies online and in forums like this before you do business with them and if you decide to do business with someone, dip your toe in the water slowly and continue to research the company after you start working with them, because things can change quickly.
1. Were these originally performing loans that went non performing?
2. What was the LTV on these assets?
3. Who was servicing these loans?
4. Were you able to review the collateral and review who the borrower was?
Reason I ask is in note investing it is actually usually pretty difficult to lose money consistently, thus the questions.1. Yes.
2. 50% - 60%
3. Safeguard Capital Partners with Zimple Money.
4. Yes.
Technically, I have not lost money yet. I don't have time to keep going back and forth here; you are welcome to contact me directly for additional details. Summary: 7 loans outstanding: 4 in foreclosure, 1 in default - trying to develop a plan before I begin foreclosing, 1 current, but has needed multiple payoff extensions, 1 current with no issues. Possibly lower returns than projected because of statutorily mandated interest rates following court judgements. Many hundreds of wasted hours, that if included, would wipe out a significant amount of earnings.
1. Yes.
2. 50% - 60%
3. Safeguard Capital Partners with Zimple Money.
4. Yes.
Update 2/6/25: I had to foreclose on four properties from Safeguard Capital and lost over $200,000. The process took over three years from when the borrower stopped making payments. 100% of their deals have had late payments and/or major issues. I've never experienced such incompetence. I've tried to give them the benefit of the doubt, but they do not learn from their mistakes and simply bury their heads in the sand. It's shocking, sad and definitely frustrating.
100% of their deals have had late payments and/or other major issues.
100% of their deals have had late payments and/or other major issues.
100% of their deals have had late payments and/or other major issues.
100% of their deals have had late payments and/or other major issues.
- Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes1y
@Dan Liston I am very sorry to hear this. I was one of the few lucky ones with Safeguard as I was able to take over the management of the loan and modify it and then got a payoff. Most were not so lucky.
- Member since 2022 · 8 posts · 0 votes1y
Very sorry to hear about your experience with Safeguard Capital. I too lost over $200,000 investing through them. I sold my last foreclosed property in Baltimore about two months ago, and I now hold zero notes through Safeguard Capital. Investing through them was an extremely costly experience, and cleaned out a significant portion of my IRA funds. They should not be in business.
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