Tulsa Real Estate Fund

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.

Here is the link http://www.tulsarealestatefund.com/

I would love any thoughts about this deal. Good opportunity, stay away. Invest small, any insight would be nice.

Thank you.

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Jillian Sidoti

Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes

@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.

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Chris Johnson
Member since 2018 · 1 post · 0 votes
8y
www.buytheblock.com is already operating and is not pending certification but is already certified. This link is important in understanding sec regulated organizations. Members of the tulsa group who are on here please address this absence.
http://www.finra.org/about/funding-portals-we-regulate
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Jillian Sidoti
Professional · Murrieta, CA · Member since 2013 · 405 posts · 458 votes
8y
@chris Johnson. Two totally different laws. Completely different. Tulsa is a Reg A qualified by the SEC. Buytheblock is a CF portal that would be regulated by FINRA and would sell others' securities (not their own.)
1 Reply
Daryl Cooper
New Castle, DE · Member since 2018 · 4 posts · 0 votes
8y
After reading every post on this subject in this forum, I can say that this is a great conversation. Valid points from positive and negative perspectives. I am a new investor (mostly stocks and bonds) and currently researching REI. I definitely do my due diligence and research my investments. I think the main issue people are speaking about is transparency.
Jay had opened up a Q/A to anyone that had issues:
https://youtu.be/WcJ_6Mn_n8g
Like the lawyer that was answering questions in this forum, I am just providing information...not investment advice.
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Desirae Price
Houston, TX · Member since 2016 · 12 posts · 12 votes
8y
Originally posted by @James Niemeyer:

Originally posted by @Ibrahim Hughes:
Originally posted by @James Niemeyer:

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.
Having been here all my life, I'm well aware of Tulsa's history. I think YOU are missing the rich culture that Tulsa offers today. From the Reconciliation Park to the Jazz hall of fame. There are tangible examples of how Tulsa is much more than what happened in 1921.
Why not call the fund "Black Wallstreet" to more accurately reflect it's goals?
It seems as though you are only upset because they do not have plans (as of yet) to invest in Tulsa. Your opinion seems emotionally based.
1 Reply
Desirae Price
Houston, TX · Member since 2016 · 12 posts · 12 votes
8y
Alot of people seem to get off the main point of how does this fund work and does it seem like a good deal. Some answered the question well, and others just provided their opinion on the subject based on things like the name. Who cares what they name it. What I care about is how they plan to spend the money and if they are actively buying this first year as they lock down. Everyone should do their research after reading this forum because some people's opinions are scare tactics. Just imagine if this works, America will change.
People of color have not been financially independent since our ancestors were forced over. This is an opportunity we have not seen since 1920. Although, there are not guarantees of dividends immediately, those who invest should have another mindset. The mindset I refer to is seeing the future of black owned buildings and communities. As the Black Nation we are within the world's Top 20 richest Nations. With $1.9 trillion in buying power, we could afford to direct $50M to ACTUALLY building our communities back up. Stop doubting something God has been working on for years. And those who are on the fence, go pray (if you are a believer) and ask God for clarity on this subject. This is something that has been working and now has enter the realm of gaining the COLLECTIVE FAITH of the community it serves to manifest. That being said I am pledging $500 into this fund.
To be super clear, this fund is open to ALL people and I doubt Jay Morrison would turn down other people's money. If you believe in the investment you should invest based on numbers or your faith in the project.
7 Reply
Account Closed
Real Estate Agent · Atlanta, GA · Member since 2015 · 24 posts · 10 votes
8y
Well said @Desirae Price.
@James Niemeyer, Jay will be in Tulsa this week for Juneteenth. He will be hosting a corner class this Friday. You should go meet and speak with him face to face. He's a cool dude.
I've invested and I'm looking forward to how the fund turns out be it good or bad! I've had the opportunity to meet Jay and the team here and I believe in their mission 100%.
3 Reply
Christian Hutchinson
Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
8y
I have been doing research into this fund. At first it seemed exciting. But after SEC Filings, fee structure evaluations, etc . I feel uncomfortable making the investment at this time, and will reevaluate in 18 months; if its successful they WILL have another round of funding because that's the nature of the beast.

I know what I have done to get lending from banks, private investors, and funds. It was a much smaller scale I had these items:
A listing of held RE Assets and performance for 2 years.
An executive summary of everyone involved in our operation: education/training, professional background, and role within the group.
Targeted Assets with rent rolls or Pro Forma for the past year, with plans for value added activities, rent projections, and cost-estimates of improvements.
Targeted clientele for desired assets backed with market research reporting or simply census data.

This venture very much feels like a guy giving a sales pitch for $50M and no exact plans on what to do with it. The 8% wont happen in Year 1 for basic reasons. Any MF Commercial Building will take 90 days to close if financing is involved, thats if its turnkey, earliest rents are Oct 1, 2018. If its turnkey the returns wont be 15%. A cash deal could maybe do 45 days, but with appraisal, environmental, inspections, title work little tight. This isn't a husband and wife with $500K in their 401k buying an apartment building and accepting risk, investors are involved things have to be done above board. This is like me putting in a furnace and HWT in a property I could pull a permit turning a 1 day thing into a two week thing, I just throw the stuff in, in this situation you have to pull a permit, slows down speed greatly.
A distressed asset will require at least 6 months of work, plus tenant turnover if occupied (loss revenues).

They stated they want to do non-profit housing, business investment, HUD housing, historical tax credits /rehabs, tax liens. When I hear that, I hear red tape, and time.

There is no skin in the game by the management. $10k is loose change in a cupholder for most RE Investors, if management had $100K I would feel better, $500K-$1M would be ideal.

If I wanted a high-risk deal, I could do it myself, self-manage controlling the outcome directly, oh and own all the equity on the backend.
Lastly, this "Guru" pitching this has 57 doors based on what he said on Youtube recently. 26 doors is a single student housing complex in GA somewhere. I'm nobody and I have 15, and I recently was able to get into banks talking about $1.25M to $2M deals and they were confident we could handle it, but my RE Assets were basically equal to the loans I desired. I feel like this guy is attempting to jump into the "next level" by using OPM to fuel his aspirations versus the reinvestment of his profits and his own assets. I question how sophisticated the management team truly is, because I know plenty of individuals with 50-500 doors (most I know is 3000), and they wouldn't dream of attempting something like this.
6 Reply
Ibrahim Hughes
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
Interesting comments @Christian Hutchinson. Did you ever address any of your concerns directly to the founders/managers of the fund?
All - I received this email last night and invite you all to listen to get additional information on the fund. @James Niemeyer - looks like they will be in your town Friday so maybe you can attend and discuss your concerns:
Tulsa Talk Thursdays - How We Raised $10 Million In One Week
Peace Family,

We have shown the world how we can come together for the advancement of our communities by raising over 10.4 Million dollars as shareholders in The People's Fund. My team and I have gladly answered thousands of your questions via the Tulsa Real Estate Fund’s customer service line, email, social media channels, and during our Tulsa Talk Thursdays each week. This Thursday, June 14, 2018, I will share the intricate details on how we accomplished this historic feat together!

In fact, you can watch this lecture to get a preview of this week's show by clicking below:

Tomorrow night, I will provide a step-by-step breakdown of the TREF business model and how you as a partner, took the first steps in our quest to rebuild Black Wall Street communities across the country as an investor in the first African American owned SEC regulated real estate crowd fund.

I encourage you to join me and your fellow investors tomorrow night, Thursday, June 14th, 2018 at a special time 6 PM ESTto gain additional insight about TREF, our mission, and address any questions or concerns using one of the attendance options below:
You can also visit the FAQ section of the Tulsa Real Estate Fund website to learn more about what to expect as an equity owner and shareholder in TREF, regulation requirements, and other specifics about setting up and funding your account.

My team and I are looking forward to making progress as your partners in this mission to rebuild Black Wall Street.

Your Fund Manager and Partner,

Jay

P.S. - This week, we are returning to the original Black Wall Street on the corner of Greenwood and Archer in Tulsa, Oklahoma for a HUGE Corner Class on this Friday, June 15th, 2018 at 6PM EST! If you are unable to attend in-person, we will broadcast this event via Livestream from the social media channels listed above.
2 Reply
Christian Hutchinson
Investor · Detroit, MI · Member since 2014 · 360 posts · 354 votes
8y
Originally posted by @Ibrahim Hughes:
Interesting comments @Christian Hutchinson. Did you ever address any of your concerns directly to the founders/managers of the fund?
I sent an email regarding the fee structure, received a stock answer basically not answering the question. Which if they simply provided an excel spreedsheet of a fee structure or a form to show load fees on a ETF, Mutual Fund, that I would buy on Vanguard, eTrade, etc I would have stopped there. Ambiguous answers generated more questions.
Talked to someone I know who took a company public about 15 years ago (yes it was a while ago, but its post-SOX so I imagine its similar), and a contact I have at the SEC. They hinted at what I suspected this is basically Seed Funding. People will get shares. All very standard stuff. The Lockup all very standard.
The alarms are: lack of management capital, lack of assets in pipeline/owned (they could have had RFPs listed by a Govt, Quasi-Govt, or as an Investor in a larger project, I would have felt better), and complete non-disclosure of previous business ventures and their outcomes.
If I walked into a Community, Regional, or Major Bank, or talk to a Private Lender right now and asking for $500K after "How you doing? Whats your name?"

They would ask me how liquid am I? and what can I put up?
What do I want to purchase? How has it performed/project to perform? Evidence please?
What have you done previously? Anything comparable to what you are wishing to do?
We all have been party to dozens or hundreds of transactions anything I said not accurate?
0 Reply
Kay Mahan
Member since 2018 · 16 posts · 9 votes
8y
@James Niemeyer
I've read your comments on two threads now and it really seems like you have a personal vendetta against the fund. Get a life.
0 Reply
Ibrahim Hughes
Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
8y
Thanks for getting back to me. Are you rating this fund and comparing it to something like a mutual fund or are you stacking it up against other 'investment funds' that have been created within our industry? I'm not that educated on funds. But I have read the comments in this thread and the consensus seems to be that the fee structure was sufficient. Maybe even too low. I myself have solicited investors for funds although not nearly on with anything on this level. But everyone who was investing with me understood that the purchase of assets would not come in until I received all of the needed Monies. And I kept all of the the profits and pay them 10 - 15% yearly on their money. Yes my track record came into play so I do see your concern with that. But my biggest question to you since you seem to be more Savvy about funds is once again, how does this Tulsa real estate fund stack up against other investment funds? Not necessarily Mutual or portfolio funds?
Originally posted by @Christian Hutchinson:

Originally posted by @Ibrahim Hughes:

Interesting comments @Christian Hutchinson. Did you ever address any of your concerns directly to the founders/managers of the fund?
I sent an email regarding the fee structure, received a stock answer basically not answering the question. Which if they simply provided an excel spreedsheet of a fee structure or a form to show load fees on a ETF, Mutual Fund, that I would buy on Vanguard, eTrade, etc I would have stopped there. Ambiguous answers generated more questions.
Talked to someone I know who took a company public about 15 years ago (yes it was a while ago, but its post-SOX so I imagine its similar), and a contact I have at the SEC. They hinted at what I suspected this is basically Seed Funding. People will get shares. All very standard stuff. The Lockup all very standard.
The alarms are: lack of management capital, lack of assets in pipeline/owned (they could have had RFPs listed by a Govt, Quasi-Govt, or as an Investor in a larger project, I would have felt better), and complete non-disclosure of previous business ventures and their outcomes.
If I walked into a Community, Regional, or Major Bank, or talk to a Private Lender right now and asking for $500K after "How you doing? Whats your name?"
They would ask me how liquid am I? and what can I put up?
What do I want to purchase? How has it performed/project to perform? Evidence please?
What have you done previously? Anything comparable to what you are wishing to do?
We all have been party to dozens or hundreds of transactions anything I said not accurate?
1 Reply
Kay Mahan
Member since 2018 · 16 posts · 9 votes
8y
@Maureen Simmons
@Jillian Sidoti
Funny thing, I am a black woman raised in Chicago and am very sensitive to racial and economic injustice in America, and I take no issue with Jillian's role in TREF. It's almost like, I am not attacking a person because they look different than me and can trust that they have integrity until otherwise proven, crazy right?
Maureen, I am saddened that you assume because we are black people trying to pull together and improve our communities, that involvement from a white woman would be frowned upon. We can still honor our Ancestors and build for our descendants without condemning anyone else.
I don't believe it was your intention but your comments denote a negative tone and seem to be based on your opinions of what you have passively observed. Furthermore, it is very insulting to generalize and say that black people are novice investors, guess so are most other races, that's a big reason why income inequality exists for everyone.
I only took this time out of my life to convey, that I totally respect that you don't want to invest in this fund, but at least hope that you would be thoughtful enough to wish us that did take the risk of investing well, and not perpetuate negativity.
Take care sis.
1 Reply
Account Closed
Lender · Pensacola, FL · Member since 2017 · 658 posts · 626 votes
8y
Originally posted by @Ibrahim Hughes:

I thought I had an example of another Reg A+ offering with a similar structure: NY Residential REIT. I bookmarked its URL (www.nyresidentialreit.com) in my ON HOLD folder a while ago because of a bullet point in its offering circular: This is a "blind pool" offering because we have not identified any investments to acquire with the net proceeds of this offering. You will not be able to evaluate our investments prior to purchasing shares.
https://disclosurequest.com/form/ny-residential-reit-llc/0001387131-17-005612/offering-circular
But when I visit www.nyresidentialreit.com now, I get redirected to www.compoundny.com, which is a by-invitation-only offering at the present time ("The Compound Manhattan ReTF is available by invitation only"). I like the thematic concept of "city-specific residential real estate funds that provide access and exposure to markets and asset classes that have high barriers to entry, beginning with the world's premier residential real estate market, Manhattan." But I'm holding on to my wallet for the time being until more information is available for me to evaluate.
I did invest in the stREITwise Reg A+ offering (streitwise.com). One of the bullet points in its offering circular is: "Although we have acquired one property and begun operations, we have not identified any other investments to acquire with the net proceeds of this offering. You will not be able to evaluate our future investments prior to purchasing shares." So far, stREITwise has made one of its promised distributions (in April of this year).
I currently manage my risk by investing a maximum of $1,000 in any one Reg A+ offering (which is an amount I can afford to lose, but don't want to lose). Time will tell whether I made a good investment with stREITwise or made a tuition payment to the College of Hard Knocks.
Of course, when I've owned publicly-traded REITs in the past, I depended on the executive team to make the right decisions about which properties to own and how to manage them. At least public real estate has a track record for me to evaluate, but a change in company leadership can often mean a change in business strategy for better or for worse.
1 Reply
Naomi Dodd
Investor · Long Beach, CA · Member since 2017 · 1 post · 1 vote
8y
@Maurice Lightner I agree with you regarding the 10K. I, unfortunately, was so excited about giving back to the community, I did not do my full diligence in research. I did make the initial small investment. Thank you for posting this question though. Some people gave me some important future insights to keep in mind. The next time I want to make an investment, I will be reaching out to this group.
1 Reply
Account Closed
Real Estate Agent · Atlanta, GA · Member since 2015 · 24 posts · 10 votes
8y
Originally posted by @Naomi Dodd:
@Maurice Lightner I agree with you regarding the 10K. I, unfortunately, was so excited about giving back to the community, I did not do my full diligence in research. I did make the initial small investment. Thank you for posting this question though. Some people gave me some important future insights to keep in mind. The next time I want to make an investment, I will be reaching out to this group.
You'll be fine. Jay and the team know what they are doing.
0 Reply
Account Closed
Lender · Pensacola, FL · Member since 2017 · 658 posts · 626 votes
8y
Ibrahim Hughes: how does this Tulsa real estate fund stack up against other investment funds?
FYI -- RealtyMogul just filed for a Reg A+ blind pool REIT offering: "the Company is set up as a "blind pool" REIT, which means that we are not committed to acquiring any particular investments with the net proceeds of this offering."
https://www.crowdfundinsider.com/2018/06/135374-realtymogul-files-new-reg-a-for-blind-pool-reit/
This is a situation where investors are betting entirely on the jockey and not on the horse.
DISCLOSURE: I own shares of MogulREIT I. MogulREIT II is on my watch list.
0 Reply
Jordan Anderson
Member since 2018 · 1 post · 0 votes
8y
@Jillian Sidoti
In reading the SEC docs and the correspondence between you and Mr. Kluck, the General question and response for Item #1, what does the SEC constitute as 'a program investing in real estate' as you answered in your second response to Mr. Kluck?
First response
Second response
0 Reply
Jeff Filali
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
7y
This was emailed to me yesterday.
CAUTION!! Regarding Jay Morrison & the Tulsa Real Estate Fund based in Atlanta.
Jay Jermaine D Morrison is currently in Chapter 7 Bankruptcy in New Jersey and also has a $200,000 judgement against him from defrauding his former real estate partners. He also spent time in prison for dealing cocaine.
He is playing off people's compassion for those involved in the Tulsa Race Riot in 1921 & other people wanting to buy back the block. Not $1 of profit goes to any of the decedents of the Tulsa Riots, or any other non-profit cause, or anything else to do with Tulsa.
Do your due diligence.
Video: https://youtu.be/3DDQQcf436g
2 Reply
Robert Collins
Rental Property Investor · Greenville County SC / Atlanta, GA · Member since 2017 · 403 posts · 120 votes
7y
I would like to see Jay Morrison on the bigger podcast if possible, I would like to understand more about the fund and the purpose
0 Reply
Maurice Lightner
OP
Miami, FL · Member since 2018 · 41 posts · 13 votes
7y
A lot of the information in your email is well known. I’m not the biggest fan of Jay Morrison, but he hasn’t hid the fact he used to sell drugs. Now he is using the name “Tulsa” to generate more buzz, but no money is going back to the original black Wall Street. And I won’t hold the bankruptcy against either since our current President
has filed got bankruptcy on a number of occasions.

Originally posted by @Jeff Filali:

This was emailed to me yesterday.
CAUTION!! Regarding Jay Morrison & the Tulsa Real Estate Fund based in Atlanta.
Jay Jermaine D Morrison is currently in Chapter 7 Bankruptcy in New Jersey and also has a $200,000 judgement against him from defrauding his former real estate partners. He also spent time in prison for dealing cocaine.
He is playing off people's compassion for those involved in the Tulsa Race Riot in 1921 & other people wanting to buy back the block. Not $1 of profit goes to any of the decedents of the Tulsa Riots, or any other non-profit cause, or anything else to do with Tulsa.
Do your due diligence.
Video: https://youtu.be/3DDQQcf436g
0 Reply
Michelle Powers
Member since 2019 · 6 posts · 0 votes
7y
I was curious about the grand jury subpoena they recently received, does anyone have any thoughts?
0 Reply
James NiemeyerPro Member
Rental Property Investor · Tulsa, OK · Member since 2017 · 60 posts · 36 votes
7y
Originally posted by @Michelle Powers:

I was curious about the grand jury subpoena they recently received, does anyone have any thoughts?
What are your thoughts?
0 Reply
Michelle Powers
Member since 2019 · 6 posts · 0 votes
7y
I'm hoping it's a normal occurrence because it's a new fund. Are you familiar with the process?
0 Reply
James NiemeyerPro Member
Rental Property Investor · Tulsa, OK · Member since 2017 · 60 posts · 36 votes
7y
Originally posted by @Michelle Powers:

I'm hoping it's a normal occurrence because it's a new fund. Are you familiar with the process?
I'm from Tulsa, and the whole idea of this fund trying to capitalize on our history is egregious. There is no way I would go near this...this...thing.
0 Reply
Michelle Powers
Member since 2019 · 6 posts · 0 votes
7y
I understand. It's a marketing tool, maybe that's why they're under criminal investigation.
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