Miami, FL · Member since 2018 · 41 posts · 13 votes
Hi, I’m new to the Bigger Pockets Forum so I apologize if I posted this incorrectly.
I was wondering if anyone heard about the Tulsa Real Estate Fund spearheaded by Jay Morrison.
He’s trying to raise $50 million in a syndication deal to develop properties in urban areas. The minimum investment is $500 and you do not have to be an accredited investment.
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
8y
@Ian Ippolito - I wrote Tulsa Real Estate Fund. Yes, 5.5 is higher than normal, but the fund isn't taking any other fees other than that fee - no acquisition, no disposition, no asset management, no refinance - nothing.
Miami, FL · Member since 2018 · 41 posts · 13 votes
8y
I do seem leery as a lot of their marketing seems to be hot button/key word centric for example “first black owned trust” “only $500 to invest” “Tulsa”
Where are the plans as far as what properties they are looking to buy. Are they waiting to get the full $50 million then look?i need more transparency since they want to be 100% transparent.
I do seem leery as a lot of their marketing seems to be hot button/key word centric for example “first black owned trust” “only $500 to invest” “Tulsa”
Where are the plans as far as what properties they are looking to buy. Are they waiting to get the full $50 million then look?i need more transparency since they want to be 100% transparent.
I do seem leery as a lot of their marketing seems to be hot button/key word centric for example “first black owned trust” “only $500 to invest” “Tulsa”
Where are the plans as far as what properties they are looking to buy. Are they waiting to get the full $50 million then look?i need more transparency since they want to be 100% transparent.
Its web site has a FAQ item on how they pick their real estate opportunities. Other Reg A+ sites I'm familiar with take a similar approach. With crowdfunding, you're betting on the jockeys finding the right horses to ride.
It’s called Tulsa Real Estate Fund in honor of Black Wall St which was located in Tulsa, OK. The purpose of the fund is to “buy back the block” and fund properties, businesses, and developments in Urban areas and create opportunities similar to what existed in Tulsa. I’ve been following the founders for years as they’ve taught real estate and spread financial knowledge throughout the urban communities. For the past few year since they’ve been working on finding a way for us to pool our resources and help rebuild these communities. TREF is the outcome
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
8y
Interesting...So Jillian Sidoti is THEIR lawyer but they are parading a black female attorney to pander to black investors on social media. Very interesting!
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
8y
@Jillian Sidoti then they should have YOU on the videos/phone calls when they were trying to explain the ins/outs of the IPO; especially since you penned it. They positioned Johnetta in front of the investors for a purpose. Jay is smart enough to know that had he shown YOU and told black folk this was an IPO for "us" he would have had a tougher sell. I find it disingenuous, but I was smart enough to actually read the IPO and discern that it was completely ridiculous.
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
8y
I can't. I am the securities attorney. I never want to look like I am promoting the offering. I don't represent investors.
Johnetta is actually an officer of the company that is listed in the offering circular as such. I have two other prominent people coming out with Reg As as well and I wouldn't promote their securities either.
I appreciate that you are concerned that because I am white, Jay is not "using" me. That is not the case. I have invited Jay to speak at conferences and events. I have never been made feel an outsider or that me being white was an issue or didn't fit the narrative - I am not supposed to fit the narrative. I am just supposed to make the story legally compliant.
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
8y
@Jillian Sidoti: First, I have absolutely no problem with you being Caucasian. As an investor, I would select the BEST representation regardless of race. However, there is a message with the Tulsa Real Estate Fund ("TREF") that has a racial element. All of the marketing for this IPO is intended to make black investors, who are sadly novice at investing, believe this is a vehicle "for us, by us". By calling it TREF, and dubbing himself "Young Malcom (in reference to Malcolm X) he is sending a message to a certain segment. IF that segment knew their securities attorney is white they would have called BS. Everything about this fund has heavy racial over (and under) tones.
I appreciate your response. I am sure you are a great attorney. :)
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
Maureen I respectfully disagree. As Ms. Sidoti stated even if she was black she couldn't get out in front and represent the security in the way that you prefer.
Secondly, I'm also involved in wealth creation Ventures for our community. and although I've found plenty of black owned companies to assist me in these Ventures, I've had my share of difficulty for some reason to find a black own attorney firm to represent us in real estate transactions. Sometimes in certain situations you have to go with what's best to get the job done. Perhaps Jay also thought having a Caucasian attorney for this matter would better improve his odds at getting approval.
Finally, it clearly states on Tulsa's website that anyone and everyone can invest in the fund. People of any race and ethnicity. It wasn't something that Jay was trying to hide as he has right their in plain site on their website. so I don't think he was trying to be disingenuous with the selection of his Securities attorney.
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
8y
:) I didn't think you had a problem with me being white. But, I just wanted to say I, personally, don't take offense at the tone of the offering.
Thanks, I try.
Also, to your point @Ibrahim Hughes - although I can appreciate your sentiment about getting through easier at the SEC - I assure you that is my experience and not my race. More than 50% of the attorneys that I believe I have corresponded with at the SEC have been minorities. It is one of the most diversified organizations I have ever dealt with.
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
8y
@Ibrahim Hughes: I have no skin in this game, because as I said I actually read the IPO and found it ridiculous. But that's my opinion.
As for his SEC attorney, are you familiar with how Jay Morrison has positioned himself in a certain sector of the black community? Are you familiar with the rhetoric he uses when addressing that audience? From my perspective, he has made it a "black and white" issue when he went against Houston's restaurant and said "we need our own". Who is the we? And need our own from whom? Additionally, if you are familiar with Malcolm X and his teachings (Jay calls himself Young Malcolm) then you would know that Malcolm X would NOT have used Jillian Sidoti no matter how much it would have positioned him.
This is not about Jillian. It's about optics and I find it disingenuous (regardless of your opinion, which I respect) that he has said this fund is 100% black. It is not 100% black when your SEC attorney is white. It doesn't matter what her role was/is. 100% black means 100% black.
Real Estate Agent · Oakland, CA · Member since 2018 · 24 posts · 54 votes
8y
Per @Jillian Sidoti: "More than 50% of the attorneys that I believe I have corresponded with at the SEC have been minorities. It is one of the most diversified organizations I have ever dealt with."
Exactly my point.....(that part about SEC and 50% of attorneys being minorities). I rest my case! :)
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
Maureen this is delving into a discussion that i typically dont have on a public forum. so I will end my contribution to this aspect of the discussion by once again pointing out the fact that the involvement by other races was made clear on the frequently Asked Questions page of his sight.
In regards to the fund, what did you find about it that was "ridiculous"?
Rental Property Investor · Tulsa, OK · Member since 2012 · 291 posts · 102 votes
8y
@Sherita Delgado I have spent my entire life in Tulsa and am intimately familiar with the terrible tragedies of the Tulsa race riots. I have no issue with their cause or objective and congratulate them on their intent if they do plan to invest in underdeveloped, urban areas. The name is somewhat misleading given they have no immediate plans to invest any of their capital in Tulsa. We could use capital infusions in many parts of our community, but like many cities, our underdeveloped areas could use the investment and carry a greater economic and social return
First off, thanks for taking the time to answer everyone's questions. Somewhat random question about fee structures. Not using any of this info to make an investment decision, just trying to get a better handle on how fees can be structured and actually work.
Using TREF as an example, you said the 5.5% fee is calculated on the balance of the fund's capital account.
After reading the Prospectus it was unclear if this is a one time or annual fee? Since it seems similar to a management fee, I'd imagine it would be annual to keep the lights on and put food on the table, but I figured I'd ask.
For fees calculated off the capital account, particularity ones involving Real Estate, is the value of non liquid assets (Single Family Rentals for example) always held at the purchase price+ CapEx until sale or are they ever marked to market in some way post renovation?
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
8y
@Bill F. - I appreciate you bringing the ambiguity to my attention. I am going to take a look at amending the offering circular to make it clear that it is a yearly fee.
I think it's very disingenuous to name a fund after a place but not have ANY intention of investing in that place. To me that's just an attempt to capitalize on Tulsa's unfortunate history.
Add in the obfuscation of the way the "manager" gets paid and I'm out. No way José are they getting a dime of this Tulsan's money.
I think you missed the cultural meaning behind the name 'Tulsa' (google 'Black Wallstreet'). The point is not to invest and rebuild Tulsa. The point is to rebuild what 'Black wallstreet' stood for. This can be done in any urban market throughout the US.
First off, thanks for taking the time to answer everyone's questions. Somewhat random question about fee structures. Not using any of this info to make an investment decision, just trying to get a better handle on how fees can be structured and actually work.
Using TREF as an example, you said the 5.5% fee is calculated on the balance of the fund's capital account.
After reading the Prospectus it was unclear if this is a one time or annual fee? Since it seems similar to a management fee, I'd imagine it would be annual to keep the lights on and put food on the table, but I figured I'd ask.
For fees calculated off the capital account, particularity ones involving Real Estate, is the value of non liquid assets (Single Family Rentals for example) always held at the purchase price+ CapEx until sale or are they ever marked to market in some way post renovation?
Thanks again.
Thank you for bringing that point to the forefront.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
Looks like he’s a Louis Farrakhan / Nation of Islam fan . He says NOI doesn’t promote hate ? Really ?
https://www.instagram.com/p/BQJxF6PDUG9/?hl=en
One recent quote from Feb 2018
“"White folks are going down. And Satan is going down. And Farrakhan, by God's grace, has pulled the cover off of that Satanic Jew and I'm here to say your time is up, your world is through," he later said.”
https://www.cnn.com/2018/02/28/politics/louis-farrakhan-speech/index.html
Looks like he's a Louis Farrakhan / Nation of Islam fan . He says NOI doesn't promote hate ? Really ?
https://www.instagram.com/p/BQJxF6PDUG9/?hl=en
One recent quote from Feb 2018
“"White folks are going down. And Satan is going down. And Farrakhan, by God's grace, has pulled the cover off of that Satanic Jew and I'm here to say your time is up, your world is through," he later said.”
How does someone's assumed religious and/or political beliefs help the BP community make an informed decision about a crowdfunding investment opportunity?
Looks like he's a Louis Farrakhan / Nation of Islam fan . He says NOI doesn't promote hate ? Really ?
https://www.instagram.com/p/BQJxF6PDUG9/?hl=en
One recent quote from Feb 2018
“"White folks are going down. And Satan is going down. And Farrakhan, by God's grace, has pulled the cover off of that Satanic Jew and I'm here to say your time is up, your world is through," he later said.”
How does someone's assumed religious and/or political beliefs help the BP community make an informed decision about a crowdfunding investment opportunity?
I asked the same question to myself when I first read this. Doesn't make any sense. There are folks whose political beliefs I actually may abhor. But that doesn't stop me from doing business with them if the numbers make sense. It's not I'm asking for your political beliefs to be included in the investment proposal.