Ashcroft capital - Paused Distributions
Member since 2020 · 9 posts · 8 votes
Ashcroft capital - Paused Distributions
Most Popular Reply
Melanie P.Pro Member
Rental Property Investor · Member since 2023 · 1k+ posts · 922 votesI guess there are about 20 suckers born every minute. Every one of you in this is an accredited investor, right? A two-second glance at their materials reveals that when they distribute funds from a property sale one of the categories is: unpaid distributions. This has been the plan since the start.
Investing in real estate is not that hard. I can't imagine what would make anyone put their money into one of these things. Pure laziness I guess. TBills are paying over 5% if you need lazy guys. No need for this nonsense.
248 Replies
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Amit M.:
For better or worse…this is turning into quite the popcorn thread ;)
It's getting funnier, in one of the multifamily event they said the supply of apt unit would be "reduced" only in 2028, so peole wondering where is the rent growth would come ? then they said we have new three million new illegal immigrant LOL hahaha
Then I check the book of one the lender, it clearly mentioned their DSCR after rent stabilization was like 0.7-0.9 LOL LOL
There's also another report from Viceroy Research showing some or Arbor Realty group apartment is running at ....... 0.6 OMG this is so hillarious almost like a joke.All these underwriters are really suicidial, I thought they are smarter than me, apparently NOT.
- Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes2y
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
I agree. these same people were nto complaining when they were getting 20% returns, but that is the risk with this type of investment which is one deal could wipe out five years or more of earnings.
7e investments53 Reviews - Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2yLet me know the last time you've seen a syndicator be sued by the SEC? While you have to register for investments outside a certain amount of people, that doesn't mean they are regulated.
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
- Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @Chris Seveney:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
I agree. these same people were nto complaining when they were getting 20% returns, but that is the risk with this type of investment which is one deal could wipe out five years or more of earnings.
Never been in one nor complained. Respectfully, since you're a syndicator; you may be a bit bias. I am posting neutral thoughts based on my 40+ years in the real estate game. But, what do I know.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes2y
Quote from @Carlos Ptriawan:
Quote from @Amit M.:
For better or worse…this is turning into quite the popcorn thread ;)
It's getting funnier, in one of the multifamily event they said the supply of apt unit would be "reduced" only in 2028, so peole wondering where is the rent growth would come ? then they said we have new three million new illegal immigrant LOL hahaha
Then I check the book of one the lender, it clearly mentioned their DSCR after rent stabilization was like 0.7-0.9 LOL LOL
There's also another report from Viceroy Research showing some or Arbor Realty group apartment is running at ....... 0.6 OMG this is so hillarious almost like a joke.All these underwriters are really suicidial, I thought they are smarter than me, apparently NOT.
Unless.......
Would you pay $3m for a property today, with horrible numbers, if "Johnny-Time-Traveler" stopped by and showed you inflation would run wild and dollar basically halve in next years, effecting a "inflation 2x" to asset prices?
That's one way it makes all kind of sense, right. If the dollar changes, everything else changes, and when your costs of $ are fixed, huh.... just sayin.
If I know dollar would halve over next whatever, I'd borrow and leverage myself to the gills in inflation adjusting assets. I wouldn't care about the cash-flow past keeping my head above water until I can liquidate gains to leverage down what I hold.
When many wealthy professionals are doing "dumb" things, I find it better to ask self how does that "dumb" thing, make sense, and become "smart".
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes2y
Quote from @Calvin Thomas:
Quote from @Chris Seveney:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
I agree. these same people were nto complaining when they were getting 20% returns, but that is the risk with this type of investment which is one deal could wipe out five years or more of earnings.
Never been in one nor complained. Respectfully, since you're a syndicator; you may be a bit bias. I am posting neutral thoughts based on my 40+ years in the real estate game. But, what do I know.
I don't know what you know Calvin, but I know it's not syndications. Because your very NOT neutral statements that syndication "should" be SEC regulated is clearly uninformed, and calling syndications a Ponzi scheme is clearly without comprehension of the components of a Ponzi scheme, and/or without comprehension of syndications, again.
- Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @James Hamling:
Quote from @Carlos Ptriawan:
Quote from @Amit M.:
For better or worse…this is turning into quite the popcorn thread ;)
It's getting funnier, in one of the multifamily event they said the supply of apt unit would be "reduced" only in 2028, so peole wondering where is the rent growth would come ? then they said we have new three million new illegal immigrant LOL hahaha
Then I check the book of one the lender, it clearly mentioned their DSCR after rent stabilization was like 0.7-0.9 LOL LOL
There's also another report from Viceroy Research showing some or Arbor Realty group apartment is running at ....... 0.6 OMG this is so hillarious almost like a joke.All these underwriters are really suicidial, I thought they are smarter than me, apparently NOT.
Unless.......
Would you pay $3m for a property today, with horrible numbers, if "Johnny-Time-Traveler" stopped by and showed you inflation would run wild and dollar basically halve in next years, effecting a "inflation 2x" to asset prices?
That's one way it makes all kind of sense, right. If the dollar changes, everything else changes, and when your costs of $ are fixed, huh.... just sayin.
If I know dollar would halve over next whatever, I'd borrow and leverage myself to the gills in inflation adjusting assets. I wouldn't care about the cash-flow past keeping my head above water until I can liquidate gains to leverage down what I hold.
When many wealthy professionals are doing "dumb" things, I find it better to ask self how does that "dumb" thing, make sense, and become "smart".
Well, I've only purchased properties that I control and own; never did this syndication BS. You should had known that inflation will erode the buying power of the dollar since we were taking off the gold standard back in 1971. Therefore, by default, all fiat currencies will continue to lose buying power. As for the what if scenario's? Well, as my late father would had said, if I had female body parts, I'd be a female. Can play the game in the past, you must look forward. With these syndications, you have to have a sh!t ton money to lose, and have a thick upper lip knowing that if it does well, you will receive some money. If and when there are rocky times ahead, you will lose money. Anyone who's told me about these syndicators, I always think of the old Aesop's fable; the emperor and his new clothes. You may be too young to know about it, but you can Google it to learn about the fable. It rings very true with these shenanigans.. I mean syndications.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes2y
Quote from @Calvin Thomas:
Quote from @James Hamling:
Quote from @Carlos Ptriawan:
Quote from @Amit M.:
For better or worse…this is turning into quite the popcorn thread ;)
It's getting funnier, in one of the multifamily event they said the supply of apt unit would be "reduced" only in 2028, so peole wondering where is the rent growth would come ? then they said we have new three million new illegal immigrant LOL hahaha
Then I check the book of one the lender, it clearly mentioned their DSCR after rent stabilization was like 0.7-0.9 LOL LOL
There's also another report from Viceroy Research showing some or Arbor Realty group apartment is running at ....... 0.6 OMG this is so hillarious almost like a joke.All these underwriters are really suicidial, I thought they are smarter than me, apparently NOT.
Unless.......
Would you pay $3m for a property today, with horrible numbers, if "Johnny-Time-Traveler" stopped by and showed you inflation would run wild and dollar basically halve in next years, effecting a "inflation 2x" to asset prices?
That's one way it makes all kind of sense, right. If the dollar changes, everything else changes, and when your costs of $ are fixed, huh.... just sayin.
If I know dollar would halve over next whatever, I'd borrow and leverage myself to the gills in inflation adjusting assets. I wouldn't care about the cash-flow past keeping my head above water until I can liquidate gains to leverage down what I hold.
When many wealthy professionals are doing "dumb" things, I find it better to ask self how does that "dumb" thing, make sense, and become "smart".
Well, I've only purchased properties that I control and own; never did this syndication BS. You should had known that inflation will erode the buying power of the dollar since we were taking off the gold standard back in 1971. Therefore, by default, all fiat currencies will continue to lose buying power. As for the what if scenario's? Well, as my late father would had said, if I had female body parts, I'd be a female. Can play the game in the past, you must look forward. With these syndications, you have to have a sh!t ton money to lose, and have a thick upper lip knowing that if it does well, you will receive some money. If and when there are rocky times ahead, you will lose money. Anyone who's told me about these syndicators, I always think of the old Aesop's fable; the emperor and his new clothes. You may be too young to know about it, but you can Google it to learn about the fable. It rings very true with these shenanigans.. I mean syndications.
So, to make sure we all understand you correctly; your saying syndications are awesome and endorse syndications whole heartedly right....
- Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Chris Seveney:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
I agree. these same people were nto complaining when they were getting 20% returns, but that is the risk with this type of investment which is one deal could wipe out five years or more of earnings.
Never been in one nor complained. Respectfully, since you're a syndicator; you may be a bit bias. I am posting neutral thoughts based on my 40+ years in the real estate game. But, what do I know.
I don't know what you know Calvin, but I know it's not syndications. Because your very NOT neutral statements that syndication "should" be SEC regulated is clearly uninformed, and calling syndications a Ponzi scheme is clearly without comprehension of the components of a Ponzi scheme, and/or without comprehension of syndications, again.
I know what I know. I know I have more knowledge in real estate than you just by the basic difference in our ages. No disrespect, it's just experience. When you start in NYC in the mid 70's, you really get to learn a lot over the decades. I am sure, in the future decades, you will also learn the same. While they are registered with the SEC, they are not held to the strict standards as a public offering would be. Once a private company (or offering) has over a certain amount of owners, partners, etc., they must file a registration statement with the SEC. However, that doesn't mean the SEC is providing any oversight on the company. Look at any of these syndicators who start out of nowhere in 2020/2021. Do you think Warren Buffett, Sam Zell, or Steve Ross would be involved with these clowns? NO.
Read up, but it's clear we cannot agree; and that is fine. You are welcome to have your opinion, and I have mine. Mine is backed with 40+ years of experience in NY, NJ, PA, CT and FL markets. For disclosure, early on Cardone reached out to me and I've heard from him head on. He's such a piece of s**t for basically stealing honest people's money. The slime ball should be in jail. So, I know more than you think about these syndicators.
Read up -
https://terms.law/2023/06/05/the-sec-compliance-process-for-...
- Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @James Hamling:
Quote from @Carlos Ptriawan:
Quote from @Amit M.:
For better or worse…this is turning into quite the popcorn thread ;)
It's getting funnier, in one of the multifamily event they said the supply of apt unit would be "reduced" only in 2028, so peole wondering where is the rent growth would come ? then they said we have new three million new illegal immigrant LOL hahaha
Then I check the book of one the lender, it clearly mentioned their DSCR after rent stabilization was like 0.7-0.9 LOL LOL
There's also another report from Viceroy Research showing some or Arbor Realty group apartment is running at ....... 0.6 OMG this is so hillarious almost like a joke.All these underwriters are really suicidial, I thought they are smarter than me, apparently NOT.
Unless.......
Would you pay $3m for a property today, with horrible numbers, if "Johnny-Time-Traveler" stopped by and showed you inflation would run wild and dollar basically halve in next years, effecting a "inflation 2x" to asset prices?
That's one way it makes all kind of sense, right. If the dollar changes, everything else changes, and when your costs of $ are fixed, huh.... just sayin.
If I know dollar would halve over next whatever, I'd borrow and leverage myself to the gills in inflation adjusting assets. I wouldn't care about the cash-flow past keeping my head above water until I can liquidate gains to leverage down what I hold.
When many wealthy professionals are doing "dumb" things, I find it better to ask self how does that "dumb" thing, make sense, and become "smart".
Well, I've only purchased properties that I control and own; never did this syndication BS. You should had known that inflation will erode the buying power of the dollar since we were taking off the gold standard back in 1971. Therefore, by default, all fiat currencies will continue to lose buying power. As for the what if scenario's? Well, as my late father would had said, if I had female body parts, I'd be a female. Can play the game in the past, you must look forward. With these syndications, you have to have a sh!t ton money to lose, and have a thick upper lip knowing that if it does well, you will receive some money. If and when there are rocky times ahead, you will lose money. Anyone who's told me about these syndicators, I always think of the old Aesop's fable; the emperor and his new clothes. You may be too young to know about it, but you can Google it to learn about the fable. It rings very true with these shenanigans.. I mean syndications.
So, to make sure we all understand you correctly; your saying syndications are awesome and endorse syndications whole heartedly right....
Maybe on Neptune, but no, not on Planet Earth.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes2y
Quote from @Calvin Thomas:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Chris Seveney:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
I agree. these same people were nto complaining when they were getting 20% returns, but that is the risk with this type of investment which is one deal could wipe out five years or more of earnings.
Never been in one nor complained. Respectfully, since you're a syndicator; you may be a bit bias. I am posting neutral thoughts based on my 40+ years in the real estate game. But, what do I know.
I don't know what you know Calvin, but I know it's not syndications. Because your very NOT neutral statements that syndication "should" be SEC regulated is clearly uninformed, and calling syndications a Ponzi scheme is clearly without comprehension of the components of a Ponzi scheme, and/or without comprehension of syndications, again.
I know what I know. I know I have more knowledge in real estate than you just by the basic difference in our ages. No disrespect, it's just experience. When you start in NYC in the mid 70's, you really get to learn a lot over the decades. I am sure, in the future decades, you will also learn the same. While they are registered with the SEC, they are not held to the strict standards as a public offering would be. Once a private company (or offering) has over a certain amount of owners, partners, etc., they must file a registration statement with the SEC. However, that doesn't mean the SEC is providing any oversight on the company. Look at any of these syndicators who start out of nowhere in 2020/2021. Do you think Warren Buffett, Sam Zell, or Steve Ross would be involved with these clowns? NO.
Read up, but it's clear we cannot agree; and that is fine. You are welcome to have your opinion, and I have mine. Mine is backed with 40+ years of experience in NY, NJ, PA, CT and FL markets. For disclosure, early on Cardone reached out to me and I've heard from him head on. He's such a piece of s**t for basically stealing honest people's money. The slime ball should be in jail. So, I know more than you think about these syndicators.
Read up -
https://terms.law/2023/06/05/the-sec-compliance-process-for-...
LMAO.... You Sir are the very living definition of "Arrogant Ignorance".
Problem you present me here is you made this Grandpa's ego smile, ranting on how I am oh-so-young, and it kinda likes such an accusation, lol. My Grandkid's will get a kick out of it.
Not sure if your inferring my 30+ yrs knowledge and experience isn't enough or just telegraphing your supreme deficiency in powers of assumption.
Either way you've well earned my block and oblivion in my world. As Mr Wonderful so beautifully coined "your dead to me".
- Member since 2024 · 1 post · 0 votes2y
I'm a little confused about the situation with Ashcroft. Everyone here is talking about how distributions are paused, but when I emailed their director of investor relations, Danielle Jackson, she said distributions are being made as scheduled. If distributions aren't being made, is this illegal?
- Member since 2020 · 9 posts · 8 votes2y
Quote from @Michael Smittelles:
I'm a little confused about the situation with Ashcroft. Everyone here is talking about how distributions are paused, but when I emailed their director of investor relations, Danielle Jackson, she said distributions are being made as scheduled. If distributions aren't being made, is this illegal?
They have certainly paused distributions on some of, if not all of their deals. I would ask again specifically what deals they have paused on and why they might be making misrepresentations like this.
- Investor · Naples, FL · Member since 2016 · 256 posts · 75 votes2y
@Christie Gahan
Basic Economics Thomas Sowell
- Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes2y
Quote from @Michael Smittelles:
I'm a little confused about the situation with Ashcroft. Everyone here is talking about how distributions are paused, but when I emailed their director of investor relations, Danielle Jackson, she said distributions are being made as scheduled. If distributions aren't being made, is this illegal?
@Michael Smittelles Just you doing some due diligence. Sounds good!
- Investor · Member since 2019 · 74 posts · 70 votes2y
Quote from @Michael Smittelles:
I'm a little confused about the situation with Ashcroft. Everyone here is talking about how distributions are paused, but when I emailed their director of investor relations, Danielle Jackson, she said distributions are being made as scheduled. If distributions aren't being made, is this illegal?
For some properties with permanent debts, there hasn't been any disruption in the actual distribution payout. For some properties, they refinanced and restarted the distribution payout.
for many properties, distribution payout is paused but it's still accruing.
I don't think this is illegal.... you are basically a silent partner in an apartment business. If the business is not doing well, you don't get paid.
- 2yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
One of you Syndication GP's can help me understand. Why do a Syndication, versus just do the deal by yourself.
Understand the basics:
1. So, you can scale and do bigger deals.
2. Reduce your risk by spreading the investment.
3. Make money off of management.
4. Even you get more juice from doing more deals faster.
But I don't see sharing the profits and having to answer to investors. Would rather keep all of the profits and only answer to myself. Would rather do 1 deal and make $1.3mm versus 3 syndication deals and make say $1.7mm. We manage our risk, so Risk reduction isn't very valuable to us.
We do Self Storage and Country Subdivision lots only. Depending on if we do SBA 10% or commercial 25% downpayment, our Cash on Cash is different. Sometimes we will do 100% cash on a development, especially when the interest rates are high. We seek an 8 to 12 year payback. With a large upfront Value Add appraised value. Our returns differ whether we do a ground up development versus an existing business purchase. Expect either a 100% cash on cash or a 400% cash on cash over a 2 year period from the Value Add valuation. Not counting the annual NOI stream.
Beyond 1 thru 4 above, why are you doing a syndication?
Are your numbers so great, which I can't see, or is your risk so low based on your terms? I have never really looked behind the scenes on a Syndication, so can't answer those two last items. Thanks.
- Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes2y
@Henry Clark Well, part of it I think is "doing something I can't do..." For example, I don't have the knowledge or deal flow to invest in Self Storage and Coutnry subdivision lots. I don't have the time either. But, if its something I want to invest in, this is one way to do it. Also, you have the resources to do 1 of your own deals. Not everybody does, or has insufficient resources to diversify.
Just another viewpoint...
- 2yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votesAre you a GP? Wondering from a GP standpoint on any type of REI type. Thanks.
Quote from @David M.:
@Henry Clark Well, part of it I think is "doing something I can't do..." For example, I don't have the knowledge or deal flow to invest in Self Storage and Coutnry subdivision lots. I don't have the time either. But, if its something I want to invest in, this is one way to do it. Also, you have the resources to do 1 of your own deals. Not everybody does, or has insufficient resources to diversify.
Just another viewpoint...
- Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes2y
@Henry Clark No, I'm not. Sorry I interjected.
- Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes2y
Quote from @Henry Clark:
One of you Syndication GP's can help me understand. Why do a Syndication, versus just do the deal by yourself.
Understand the basics:
1. So, you can scale and do bigger deals.
2. Reduce your risk by spreading the investment.
3. Make money off of management.
4. Even you get more juice from doing more deals faster.
But I don't see sharing the profits and having to answer to investors. Would rather keep all of the profits and only answer to myself. Would rather do 1 deal and make $1.3mm versus 3 syndication deals and make say $1.7mm. We manage our risk, so Risk reduction isn't very valuable to us.
We do Self Storage and Country Subdivision lots only. Depending on if we do SBA 10% or commercial 25% downpayment, our Cash on Cash is different. Sometimes we will do 100% cash on a development, especially when the interest rates are high. We seek an 8 to 12 year payback. With a large upfront Value Add appraised value. Our returns differ whether we do a ground up development versus an existing business purchase. Expect either a 100% cash on cash or a 400% cash on cash over a 2 year period from the Value Add valuation. Not counting the annual NOI stream.
Beyond 1 thru 4 above, why are you doing a syndication?
Are your numbers so great, which I can't see, or is your risk so low based on your terms? I have never really looked behind the scenes on a Syndication, so can't answer those two last items. Thanks.
As a GP, if you do it correctly, you can make $1-$5mm+ off of a $50k+ investment. Plus you can make your LP investors a bunch of money as well.
I'll give an example of a deal we did. I paid my investors their money, plus a 26% IRR on their investment. I received a $117,000 acquisition fee upfront, then $25k/year asset management fee, plus cash flow of about $15,000/year. Then 3 years later at the sale, I received $800k profit.
- Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes2y
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Chris Seveney:
Quote from @James Hamling:
Quote from @Calvin Thomas:
Quote from @Melanie P.:
Quote from @Calvin Thomas:
I will also be looking for deals to scoop these failed syndications on pennies on the dollar during the end of 2024 and through 2025. No outside money necessary. It's going to be 2008-2012 all over again. Rest assured, Wall Street and private money know of this too. It was a perfect trap for the inexperienced "syndicators".
100%. I told my husband it's going to be blood in the streets soon. Patience in deploying capital and willingness to shift sectors are key to successful real estate investing.
You ever meet someone at the cigar shop or country club, clearly very successful and they told you, "I'm just so thankful I learned about Big Larry's Foolproof Apartment Syndications?
TBills are paying 5.6% right now. No need to take huge risk for minimal reward. Haven't people seen "Boiler Room" or any of the movies about Madoff? Wolf of Wall Street? I just don't get what is in someone's head who is good enough with money to be an accredited investor but they send money off to a slick telemarketer with a fancy website.
They watch these stupid shows like Million Dollar Listing and other Bravo TV shows which make real estate investing so easy. Then, when they don't have the funds to purchase a large property, they parlay those funds into these syndications; which should be regulated by the SEC. When the sh!t hits the fan, the originators are fine and the "investors" are lost out of most if not all of their money.
Very rarely, unless it's massively huge (5 billion plus), would the feds get involved. It's a Ponzi scheme for may of them. Are there ligit ones, I'm sure. But they are few and far between.
aaaaaahhhh.... Calvin, you may wanna google some of this, ya know, just double check comprehension, just sayin.
For something to be a syndication, it is SEC regulated. A syndication is a real estate entity that creates and sells securities, hence, SEC regulated.
And Ponzi scheme doesn't apply to syndications because a Ponzi requires an ongoing consistent inflow of investor capital, which funds the consistent outflow of "returns" to prior investors. In a syndication, investment capital is placed a limited time, generally speaking once. Yes, there can be additional capital calls for various reasons but nothing like a Ponzi, it's not an "open door" of weekly investor capital coming in at random, and going out at random.
And lastly, there is only about 47 different times a person is told risk is involved, it's investing, results may vary INCLUDING bad potential results that can loose some or even ALL investors capital.
Death and tax's, those are your 2 "guarantees" in life, everything else has a risk factor, a component of "chaos" in it.
Plenty of poor syndicators out there but let's keep things accurate and fair.
I agree. these same people were nto complaining when they were getting 20% returns, but that is the risk with this type of investment which is one deal could wipe out five years or more of earnings.
Never been in one nor complained. Respectfully, since you're a syndicator; you may be a bit bias. I am posting neutral thoughts based on my 40+ years in the real estate game. But, what do I know.
I don't know what you know Calvin, but I know it's not syndications. Because your very NOT neutral statements that syndication "should" be SEC regulated is clearly uninformed, and calling syndications a Ponzi scheme is clearly without comprehension of the components of a Ponzi scheme, and/or without comprehension of syndications, again.
I know what I know. I know I have more knowledge in real estate than you just by the basic difference in our ages. No disrespect, it's just experience. When you start in NYC in the mid 70's, you really get to learn a lot over the decades. I am sure, in the future decades, you will also learn the same. While they are registered with the SEC, they are not held to the strict standards as a public offering would be. Once a private company (or offering) has over a certain amount of owners, partners, etc., they must file a registration statement with the SEC. However, that doesn't mean the SEC is providing any oversight on the company. Look at any of these syndicators who start out of nowhere in 2020/2021. Do you think Warren Buffett, Sam Zell, or Steve Ross would be involved with these clowns? NO.
Read up, but it's clear we cannot agree; and that is fine. You are welcome to have your opinion, and I have mine. Mine is backed with 40+ years of experience in NY, NJ, PA, CT and FL markets. For disclosure, early on Cardone reached out to me and I've heard from him head on. He's such a piece of s**t for basically stealing honest people's money. The slime ball should be in jail. So, I know more than you think about these syndicators.
Read up -
https://terms.law/2023/06/05/the-sec-compliance-process-for-...
LMAO.... You Sir are the very living definition of "Arrogant Ignorance".
Problem you present me here is you made this Grandpa's ego smile, ranting on how I am oh-so-young, and it kinda likes such an accusation, lol. My Grandkid's will get a kick out of it.
Not sure if your inferring my 30+ yrs knowledge and experience isn't enough or just telegraphing your supreme deficiency in powers of assumption.
Either way you've well earned my block and oblivion in my world. As Mr Wonderful so beautifully coined "your dead to me".
Didn't mean to get your panties in a bunch. I guess people are more sensitive that us older guys these days. Good luck to you and your future endeavors my friend. Toughen up. It's nothing personal, just a difference of opinion. I believe we are still allowed to have a difference of opinion these days..
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