Anyone invest with Equity Street Capital?

Question

Just sat through a webinar with Equity Street Capital.  Wondering if anyone had long term experience with this group, and how it was going?Thinking about investing with them on commercial.

Brad Johnson · Answer

Hey David- these are the guys that started Fortunebuilders, a real estate seminar company. Long story short, they have very little commercial experience and even less experience in understanding the companies that occupy their properties. Their Fortunebuilders company is the same model as Trump University, meaning they take advantage of novice investors masterfully. Best to avoid this fund and go with a proven track record.

Bruce Goldfarb · Answer

Hi Lance... How has it gone since your Oct 2020 post about your experiences and results investing with Equity Street Capital?  I'm very curious how things have gone with these investments, especially since its been over 2 years since your posting your disappointments!!  Now that you've been in these investments for over 3 years (including how thing went at these properties/investments thru the pandemic).  I ask because I was on all 3 of the original webinars for these 3 properties, but was not yet ready to invest!!  Thank you in advance!

Lance B. · Answer

I agree with the comment about taking advantage of novice investors. I invested in 3 of their deals (co-promoted by Big V Group): Crossroads South, Spradlin Farms and Southeastern Portfolio...ALL HAVE FALLEN WAY, WAY SHORT OF PROJECTIONS. My actual cumulative IRR = 5.1% vs. about 15% underwriting. I later learned the Crossroads deal had "blown up" the first time, and this was not disclosed when they refinanced to a new investor group I was part of. (After I sought to be redeemed, I learned 19 of the 20 original investors got their money back out of the refinance.)

John Strong · Answer

Hello, have you had any luck or more disappointments since you last posted about Equity Street Capital?

I just watched 1 of their seminars and I am interested but cautious.  Please let me know asap.

Thank you

Ed W. · Answer

I invested in their Southpark Meadows project last year. The 2nd distribution is close to what they forecast for the preferred return. I'm not disappointed as I don't expect them to catch up until they have been operating the property for 18 months.

As to taking advantage of novice investors, only a very small percent of people who buy ANY real estate investment program at any price ever start trying to put it into practice. I know people who joined and are now doing $100M deals, and others who did nothing and got nothing. I'm somewhere in between.

Anyone invest with Equity Street Capital?

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