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.
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes
7y
Tulsa is doing really well now. I will be investing more into it. Any negativity about Jay or the Tulsa fund is likely out of jealousy or some other issues that invalidate the argument.
Tulsa is doing really well now. I will be investing more into it. Any negativity about Jay or the Tulsa fund is likely out of jealousy or some other issues that invalidate the argument.
The "Tulsa fund" has absolutely nothing to do with Tulsa, Nate. Good luck to you sir.
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes
7y
They're about to launch the next raise. They have invested into some good properties. Jay was able to raise a significant amount in just the first few weeks. I expect he will raise the full $50,000,000.00 in 19-20.
They setup their programs for contractors to bid on projects. They thoroughly analyze deals sent to them for consideration. I know someone who is JV'ing with them and TREF is funding $1,000,000.00 on a multi family property purchase and renovation with long term potential.
The SEC issue is pretty much standard and will be resolved. There was no C&D. I think his detractors and critics have some jealousy issues. He successfully started a Regulation A Tier 2 fund and raised tens of millions of dollars when most of them cant even raise tens of thousands.
The SEC issue is pretty much standard and will be resolved. There was no C&D. I think his detractors and critics have some jealousy issues. He successfully started a Regulation A Tier 2 fund and raised tens of millions of dollars when most of them cant even raise tens of thousands.
To be clear, you are saying that federal grand jury and SEC subpoenas are a standard occurrence for Reg A funds?
Could you provide some data to support that claim?
Forgive me if it appears I have passed judgment, I have not. I am trying to learn more about Reg A offerings and, given your statements, you appear to have more knowledge than I.
You made an assertion that "The SEC issue is pretty much standard". By issue I assume you mean the subpoena. What information led you to make the claim that TREF being subpoenaed is part of a Reg A's normal course of business?
Additionally, if it is in fact a normal occurrence for Reg A offerings to be subpoenaed by the SEC, what about subpoenas issued by a grand jury? Where does that fall out on the spectrum of standard to unusual?
Finally, a federal grand jury and the SEC are neither TREF's "haters" nor are they "competitors". The former is a group of people empowered to conduct a legal proceeding and the latter is a regulator agency.
I admire the respect and passion you have for Mr. Morrison and his endeavors.
When I first engaged with you on the topic of what is “normal” for Reg A offerings regarding their interactions with the SEC and DOJ I thought you had some level of expertise in this arena. Given your inability to answer a simple question, the ad hominem allusions to my “privilege” and perceived lack of assets, and your invocation of your political leanings when they have no bearing whatsoever on the issue I see quite clearly now that I was wrong. You have no expertise in this area and furthermore lack the intellectual honestly to admit you made a statement that has no grounding in fact.
My sincerest apologies for mistaking your baseless emotional rantings for actual knowledge.
Please forgive me and I hope your days are filled with people just like you.
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes
7y
@Bill F. Perhaps you will one day wait until a matter is resolved before commenting on it with the bias you clearly demonstrate. But perhaps white supremacy is alive and well on bigger pockets.
@Bill F. Perhaps you will one day wait until a matter is resolved before commenting on it with the bias you clearly demonstrate. But perhaps white supremacy is alive and well on bigger pockets.
You really lived up to your potential with that last post Nate, but I've been called worse things by better people. However, I refuse to enter a battle of wits with an unarmed opponent.
Forgive me if it appears I have passed judgment, I have not. I am trying to learn more about Reg A offerings and, given your statements, you appear to have more knowledge than I.
You made an assertion that "The SEC issue is pretty much standard". By issue I assume you mean the subpoena. What information led you to make the claim that TREF being subpoenaed is part of a Reg A's normal course of business?
Additionally, if it is in fact a normal occurrence for Reg A offerings to be subpoenaed by the SEC, what about subpoenas issued by a grand jury? Where does that fall out on the spectrum of standard to unusual?
Finally, a federal grand jury and the SEC are neither TREF's "haters" nor are they "competitors". The former is a group of people empowered to conduct a legal proceeding and the latter is a regulator agency.
I've heard from several investing friends that the current subpoena isn't a big deal. They've also made it seem as if it's standard practice. I haven't been able to find much online to confirm or deny that. Jay was asked about it on the weekly Q&A sessions they host. He basically said they've requested documents, they sent all the information over and are just waiting to hear back.
I am learning just as you are, but in my opinion it doesn't seem like a big deal. Especially since they are still conducting business.
Miami, FL · Member since 2018 · 41 posts · 13 votes
7y
@Cimarron Carter they are supposed to conduct business as usual and deflect any attention away from them. Guilty people never admit their guilt. When I asked him about on Instagram he ignored it and he has always respond to my questions in the past.
@Cimarron Carter they are supposed to conduct business as usual and deflect any attention away from them. Guilty people never admit their guilt. When I asked him about on Instagram he ignored it and he has always respond to my questions in the past.
My point was that if something was already known to the SEC and/or DA, they would have had them cease operations. Why would they continue to allow someone guilty solicit funds and existing transactions to continue/close? They'd still be raising capital right now if the annual filing was already done. Jay not responding to you on Instagram isn't saying a whole lot, especially when he took the very same question several times on the Livestream. He doesn't respond to most of his comments.
For now, we just have to wait and see what comes from it instead of speculating either way.
Also, they are not doing a second raise. They are doing the annual filing. I believe the information regarding the number of donors and money raised needed to be removed as there were discrepancies between what was actually sitting in the bank and how much capital was committed. Jay mentioned this in August of 2018 and again recently.
Miami, FL · Member since 2018 · 41 posts · 13 votes
7y
@Cimarron Carter a subpoena to request does not mean their guilty, I agree with that. The SEC have to do their due diligence. I honestly think the inquiry might have to do with all the publicity he has generated. I’m not even sure they will get arrested or shut down. From the beginning I was hesitant and skeptical and this supports my fears.
@Cimarron Carter a subpoena to request does not mean their guilty, I agree with that. The SEC have to do their due diligence. I honestly think the inquiry might have to do with all the publicity he has generated. I’m not even sure they will get arrested or shut down. From the beginning I was hesitant and skeptical and this supports my fears.
Did you invest?
Yes sir. I invested on day 1 into the fund. I trust Jay and the team will get the job done. Despite my trust, I could lose my initial investment. So I put in what I was comfortable with.
I understand the skepticism. Don't invest in anything you aren't comfortable with!
I was under the impression that a grand jury is used for criminal indictments. The SEC only partners with the local District Attorney if they suspect criminal activity. Their attorney, Jilian,on another thread, stated she wasn't sure why they received the subpoena, that sounds odd to me coming from an attorney. Shouldn't she be Knowledgeable about the role of a grand jury?
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes
7y
@Cimarron Carter Yes. It’s a routine matter. It’s documents and paperwork. It’s easily fixed. Could be anything from a new executive or some other matter. A lot of jealousy regarding Jay and TREF because he accomplished what so many say they want to do and don’t do.
In the end he will come out ahead. They are gearing up for another round. They have put a good team in place and Jay regularly does his TREF talks. He puts a lot more out there then most fund managers.