List of Syndicators/GPs to AVOID?
Most Popular Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votesAs always, it will be a case by case basis.
This thread is about GPs to avoid. Many LPs thanked their sponsors for good returns with millions of dollars in guaranteed fees, and tens of millions in carried interest. To those sponsors, LPs shouldn't say "thank you." They should say, "you're welcome."
GPs solicited investors by promising huge returns and citing their track records. Some did this very publicly. Then those GPs "earned" fees just for buying the buildings... the same buildings that will now result in many cases in total wipeout for their investors. Some of them are now asking for more capital to bail out these buildings and have very real risk of losing that too.
LPs absolutely have a right to be mad, and a total or near total wipeout of invested capital in the last 3-5 years absolutely invalidates a decade of performance in many, but not all, cases, in my view, especially in the 2010s, when almost anyone with a pulse could make money in multifamily.
However, what matters more to me than whether a fund or deal is wiped out, is how the sponsor handles it.
"Good" in the context of losing, to me, looks like this:
Sponsor honestly appraises the situation, and provides a blunt assessment of where they made a bad bet, failed in due diligence, operated poorly, or were totally irresponsible with leverage and timing. Sponsor realistically and honestly susses out this from market challenges, which of course are real.
Sponsor tells investors that they are committed to operating their current business and stewarding investor capital. Sponsor recommits full-time attention to their job, which is to oversee the tens of millions, hundreds of millions, and/or billions of Assets they deploy.
Sponsor is regularly seen on-site at every property in their portfolio, regardless of personal cost.
They raised the big bucks, and things aren't going well. Are they going to be on vacation? Are they going to start up the next fun side project or fund? Or are they going to go to work and do everything they can to make their investors whole on their CURRENT deals?
I'm in a deal that's gone south as an LP. My sponsor is doing "Good" in the context of losing.
We all knew what we were getting into. We knew the bet. He executed it. It's his full-time job. It's all he does. He lives within an easy drive of every property in the portfolio.
Doesn't change that I am getting flushed on the deal. But, I may/will invest with him again. He operated it well. Executed the plan, keeps the units occupied. Just supply and interest rates crushed us. I expect many investors will not be happy, but they also won't publicly roast him for fleecing them.
Other sponsors aren't doing "good" in the context of losing. They will get roasted.
Some deserve it.
134 Replies
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Jay Hinrichs:
Quote from @Scott Trench:
Quote from @Forest Wu:
Quote from @Allan C.:
@Brian Burke I think a great sponsor is someone who pulls out of the market when all signs point to a very frothy bubble, even while every other sponsor is forging ahead.
I applaud you and the Praxis group for having discipline and integrity. You gained credibility when you took personal risk to protect your LPs during the prior downturn, and you’ve secured my trust with your actions during this cycle.
Counter-cyclic investing is an aspiration that few achieve - kudos to you.
That's a great story to hear. Did you invest with the Praxis group? If so, it would be helpful to hear some of the stories - both bad and good! If you can share some specifics of what Brian Burke did to protect LPs, that'd be great!
My understanding is that Brian Burke sold his portfolio by 2021, and has by and large sat on the beach twiddling his thumbs and working on his tan for the last three years. Dabbled in some low risk first position debt and credit funds.
During this period he was also a vocal bear on the market, including here on BiggerPockets. His warnings were largely unheeded.
Brian is not just twiddling his thumbs he has started debt fund and is being the bank you can invest in that today I believe.if Fed rate continue like this and inflation is sticky at 3% then we would see more biz switching from equity sid to the debt side. It almost make no sense to invest to equity when spread is so thin.
- Member since 2019 · 7k+ posts · 4k+ votes2y
i think what should really happen if Fed rate continue this high then lending industry has to change and adapt.
For residential they should introduce 40 years fixed mortgage and for multifamily, 15-20 years fixed debt agency loan.
I heard FM going into HELOC biz. - Investor · Newport Beach, CA · Member since 2019 · 190 posts · 176 votes2y
All good points but I don't think it's realistic to assume one can properly time exiting and entering a market. If you're invested with long term fixed rates, you'd be paying HUGE pre-payment penalties. I thought 2019 was the peak but it was delayed and the market saw a huge rally because of COVID stimulus. What can be done is switching to more risk averse investments (property quality, location and financial structure) during the later stages of a cycle. Variable rate loans and even high leverage aren't bad, they're just bad when applied to the wrong investments and/or at the wrong time of a cycle. The issue with most syndicators in 2021/2022 is that they used high leverage, floating rate loans on EVERY deal thinking the market was going to continue to take off.
As for exiting in 2021, I would just counter that there are plenty of investments done in 2021 with 10-year fixed rate loans at 3% (and less) that are still distributing strong cashflow and will be completely fine or HUD loans that now have sub-3% for the next 35 years. Investors should understand their own risk tolerance and should align with a sponsor's strategy. Stop chasing the highest stated returns because in order to achieve a 15-20% return, absent cap rate compression, it requires what's referred to as financial engineering (leverage mostly) and significant risk comes along with it.
@Carlos Ptriawan I think you're 100% right regarding 7 to 10 year debt. You avoid market volatility and while short term gains often don't look as impressive, long term gains over a 10 to 20 year period often surpass short term investment strategies because they don't lose capital. I often speak to two types of investor: Investor #1 say "Here's my money, when do I get it back?" and Investor #2 says "Here's my money, please don't sent it back quickly. Keep it compounding." Investor #1 is typically those with a moderate net worth while investor #2 is typically very very wealthy.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Bobby Larsen:
All good points but I don't think it's realistic to assume one can properly time exiting and entering a market. If you're invested with long term fixed rates, you'd be paying HUGE pre-payment penalties. I\
For me it is very easy Bobby, I would just wait for NI-0DE ( I may spelled it incorrectly) report and wait for two quarters report where the appreciation is not negative, two quarters are good. That's the mark of the bottom.
Everything is easy in real estate, there's no magic, it's not like we find cancer drug in biotech industry.For the rest, I am okay in general. I plan to invest long term and not short term.
- Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes2y
Quote from @Forest Wu:
Listen to Paul Moore’s how to lose money episode 157, you will gain a whole lot of respect for @Brian Burke
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Forest Wu:
Hi! One of my last posts was asking about syndications/PE opportunities. Unfortunately, I've come across quite a few people who are really upset with how their syndication experience has been. Quite a few people have lost a lot of money. I think it'll be very helpful to increase transparency on those operators who have betrayed their investors trust or simply are poor performers. So let's do the following:
1/ List the GP / syndication that you've had a terrible experience with
2/ At a high level (and as much as you're comfortable sharing), provide a reason for why the GP / Syndication should be avoided from your experience (or an acquaintance's experience)
3/ Any lesson learned to help future investors
Let's help each other avoid future mistakes and bring hold GPs/operators accountable.
You need to be quantitative.
Lets define the risk of multifamily :
1. Market Risk
2. Financing Risk
3. Property Risk
4. Business Plan/Operational Risk
5. Operational Risk
6. Regional Risk
Market Risk, The return/risk of MF is basically a spread between cap rate and Note risk. The widen the spread the better. R/R ratio in 2012-2015 is better than 2021-2026 for sure.
So MF that's purchased during 2021-2026 would have more risk than one that purchased on 2012.
Financing Risk, the longer the term of financing the better. Everyone know any DST that purchased 40% LTV Core-only Class A for agency loan for 8 years fixed debat would have lower risk than 90% bridge-loan from LoanCore.
Property Risk, some area and some class would have different risk depending on its location even if it's located on the same geographical area. If you invest in Oakland,CA compare to Berkeley,CA ; the risk is widely different, does not matter if you are Maradona-level of GP.Business Plan Risk, Each lender and bond-rating service has their own review to each apartment that's being offered as a loan, and they give rating for each biz. plan. THis one I found to be very facsinating. And I think this where individual LP expression may be useful.
Operational Risk, There's one GP that's losing money because eviction cost, another GP losing money because they miscalculated insurance cost and another GP is losing money because.......plumbing issue. Another GP is losing money is because their PM is not good,etc,etc..Regional issue, it's known that in regional issue, due to supply/demand mismatch and miscalculated of rent growth, the vacancy rate of one region is faster/slower than the others. The CBRE or brokers of your choice can have this info. In NJ the vacancy is better than in TX, for example
Quote from @Bobby Larsen:
All good points but I don't think it's realistic to assume one can properly time exiting and entering a market. If you're invested with long term fixed rates, you'd be paying HUGE pre-payment penalties. I thought 2019 was the peak but it was delayed and the market saw a huge rally because of COVID stimulus. What can be done is switching to more risk averse investments (property quality, location and financial structure) during the later stages of a cycle. Variable rate loans and even high leverage aren't bad, they're just bad when applied to the wrong investments and/or at the wrong time of a cycle. The issue with most syndicators in 2021/2022 is that they used high leverage, floating rate loans on EVERY deal thinking the market was going to continue to take off.
As for exiting in 2021, I would just counter that there are plenty of investments done in 2021 with 10-year fixed rate loans at 3% (and less) that are still distributing strong cashflow and will be completely fine or HUD loans that now have sub-3% for the next 35 years. Investors should understand their own risk tolerance and should align with a sponsor's strategy. Stop chasing the highest stated returns because in order to achieve a 15-20% return, absent cap rate compression, it requires what's referred to as financial engineering (leverage mostly) and significant risk comes along with it.
@Carlos Ptriawan I think you're 100% right regarding 7 to 10 year debt. You avoid market volatility and while short term gains often don't look as impressive, long term gains over a 10 to 20 year period often surpass short term investment strategies because they don't lose capital. I often speak to two types of investor: Investor #1 say "Here's my money, when do I get it back?" and Investor #2 says "Here's my money, please don't sent it back quickly. Keep it compounding." Investor #1 is typically those with a moderate net worth while investor #2 is typically very very wealthy.
Investor #1 is the typical investor that just got into money. #2 investor I've never heard of.
The very wealthy roll their money, but absolutely will come in and capitalize at times strategically. They never tell you to keep it compounding, they just don't outright say that or instruct that. They do it without saying, because when you least expect it they will be out there realizing their gains. We could be talking about different classes of wealth though.
Very, very wealthy to me is north of half bil. Investor one is someone with something small like 10 or 15 M that just got into inheritance or luck. Or even more small fry like BP real estate investor that focus on $100/mo cash flow in Akron like that one lady.
- Investor · Newport Beach, CA · Member since 2019 · 190 posts · 176 votes2y
Quote from @V.G Jason:
Quote from @Bobby Larsen:
All good points but I don't think it's realistic to assume one can properly time exiting and entering a market. If you're invested with long term fixed rates, you'd be paying HUGE pre-payment penalties. I thought 2019 was the peak but it was delayed and the market saw a huge rally because of COVID stimulus. What can be done is switching to more risk averse investments (property quality, location and financial structure) during the later stages of a cycle. Variable rate loans and even high leverage aren't bad, they're just bad when applied to the wrong investments and/or at the wrong time of a cycle. The issue with most syndicators in 2021/2022 is that they used high leverage, floating rate loans on EVERY deal thinking the market was going to continue to take off.
As for exiting in 2021, I would just counter that there are plenty of investments done in 2021 with 10-year fixed rate loans at 3% (and less) that are still distributing strong cashflow and will be completely fine or HUD loans that now have sub-3% for the next 35 years. Investors should understand their own risk tolerance and should align with a sponsor's strategy. Stop chasing the highest stated returns because in order to achieve a 15-20% return, absent cap rate compression, it requires what's referred to as financial engineering (leverage mostly) and significant risk comes along with it.
@Carlos Ptriawan I think you're 100% right regarding 7 to 10 year debt. You avoid market volatility and while short term gains often don't look as impressive, long term gains over a 10 to 20 year period often surpass short term investment strategies because they don't lose capital. I often speak to two types of investor: Investor #1 say "Here's my money, when do I get it back?" and Investor #2 says "Here's my money, please don't sent it back quickly. Keep it compounding." Investor #1 is typically those with a moderate net worth while investor #2 is typically very very wealthy.
Investor #1 is the typical investor that just got into money. #2 investor I've never heard of.
The very wealthy roll their money, but absolutely will come in and capitalize at times strategically. They never tell you to keep it compounding, they just don't outright say that or instruct that. They do it without saying, because when you least expect it they will be out there realizing their gains. We could be talking about different classes of wealth though.
Very, very wealthy to me is north of half bil. Investor one is someone with something small like 10 or 15 M that just got into inheritance or luck. Or even more small fry like BP real estate investor that focus on $100/mo cash flow in Akron like that one lady.
I frequently have these conversation, more often than Option 1 investors which I agree, tends to be new money or small investors. Probably why 90%+ of our investors roll over investments via our 1031 exchanges each time. I’d categorize ultra wealthy as those with $50-$100 million+ though so that’s probably the difference. At $500m+, you're probably not an LP with 50 other investors. You’re a family office and/or employ advisers trying to earn their salary and/or investing as 100% owner of a TIC (or JV) and can maintain continuous pre-tax compounding even after exiting a position. Most of our investors aren’t trying to time a market and I personally think that’s a fools game. Even if you timed it perfectly, which no one can, market timing does not exceed the benefits of pre-tax compounding. Rather than entering and exiting based on market timing, I prefer to change an investment focus/strategy depending where I think the investment cycle is. - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
This post has 30+ comments, but has anyone actually roasted a GP yet?
7e investments53 Reviews - 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Some GPs are rich and powerful. The biggest ego seems to coincide with the thinnest skin. Their reputation is everything, and poor performance in their fund will have them laughed out of the room when they try to sell their $10K course on using OPM to buy property and achieve financial freedom in 1 year.
“I have 10,000 units and $2B under management”
sounds a lot better than
“I raised $500M in equity financing and have lost at least 75% of that equity if I were to liquidate my portfolio right now”
They have already begun sending threatening legal notices to members who post on these forums, even when those members post factually correct information.That’s why a forum that allows discussion to take place on this subject that is designed to shine a light on GP behavior and performance is so important.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Scott Trench:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Some GPs are rich and powerful. The biggest ego seems to coincide with the thinnest skin. Their reputation is everything, and poor performance in their fund will have them laughed out of the room when they try to sell their $10K course on using OPM to buy property and achieve financial freedom in 1 year.
“I have 10,000 units and $2B under management”
sounds a lot better than
“I raised $500M in equity financing and have lost at least 75% of that equity if I were to liquidate my portfolio right now”
They have already begun sending threatening legal notices to members who post on these forums, even when those members post factually correct information.That’s why a forum that allows discussion to take place on this subject that is designed to shine a light on GP behavior and performance is so important.
Wow Saber rattling letters to their LP's that will quiet some but other I bet it will have the opposite effect on .
The internet/SM cuts both ways great tool for expanding ones business or it can tear it down.
The example you give and I have to believe with those facts the GPs are boxed into a corner IE they need to keep raising money or selling guru plans so they have cash flow since their LPS are leaking oil so badly. And of course what we see today is a very natural progression for how folks become on line training Guru's. Large SM presence that is positive. Public maybe has an impression of their skills sets that is inflated to reality of what their background is or their Actual experience.. In other words a popularity contest. So they leverage that popularity and go into the ridiculously profitable business of selling education. The question is do they change their personal lifestyle and use this income to help the struggling projects.. Or just fall back on the fine print in the offering memorandums that generally protect the GP and are the detriment of the LP>.
Keep in mind every offering i have ever seen and the few I have personally put together The first page is Generally in Bold print this is a risky there is no liquidity and you could lose 100% of your money.. this is disclosed up front.. I just think Lps gloss over it and in some cases they have the mind set HEY my GP has to much to lose there is no way he/she will be involved with something that would fail and or if it does they will rescue us. I just 100% believe this mindset is true with so many Lps that are newer to investing in syndication.
Anyone who has been in the trenches and or decades of experience is going to have bummers and loss's I know I have 08 to 2011 pretty difficult time for anyone in the space not to take some sort of loss. As I have learned following these threads it appears to me .
Some of these companies got there for these reasons.
1. Keeping up with the return delta their competition was offering.
2. to keep up they had to take on not so great short term or bridge debt so it juiced their out of the box return numbers.
3. Fomo reaching for deals for the sake of doing the deals and keeping the machine rolling.
4. Just plain lack of experience over the long haul.
5. Never really ran a business that all of a sudden had 100s of investors and no experience how to handle all these investors.
6. Fear of admitting they have a bummer until they get to a critical phase.
7. And a Major one in my mind simply very poor communication skills with their investors letting investors Stew and boil over.. We see it with little 5k investor who just goes ballistic when they don't get an email return in 24 hours. etc etc.
8. And what I personally experienced in the late 80s when it starts melting down the GPs make very poor choices and end up in real trouble trying to save deals that basically are already lost. - Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ? @Jay Hinrichs regarding your point #8, what is interesting going forward is seeing how capital calls play out. What percent of GPs making capital calls will actually manage to minimize losses vs GPs that end up loosing all that money too for the LPs?
Unfortunately LPs, in addition to being in bad deals are also deciding on capital calls. Personally I think more often than not it will be throwing out good money after bad, but seeing which capital call end up saving the day and which won’t will be interesting.Another good question is if the syndication failure rate will be lower or higher than during the Great Recession of 2008-2010. Of course we didn’t have as active of a BP, social media, etc. scene back then. But flipping SFHs was out of control during that time and got a lot of media attention. I think syndications were less known to the general public back then compared to this cycle
Some interesting post-mortem analysis to be had for sure; I’m just relieved that I’m sitting on the outside looking at all this. But it’s times like this that create valuable investing lessons to be had nevertheless.
Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ?Create 2nd BP account and post anonymously;)
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Bobby Larsen:
Quote from @V.G Jason:
Per Wells-Fargo analysis tomorow, the future is Fed 2/5 Notes yield around 4% so 50-70bps lower than today and it would not be like in the previous 40 years where there would be a huge spike down "reverse V".
So if we assume the Fed Note at 4.25% and healthy spread is 200bps, we expect the Commercial Rate Note to settle at 5.7-6.75% in the long run.
Having said that, if cap rate settles at 6.5-7.0 that's a pretty healthy spread, so I expect the valuation to down 50 to 100 bps from today.
I see lot of "funds" level syndication these days, almost none of them running in healthy financial metrics. Would wait til 2026 for all the mess to stop.
- Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Amit M.:
Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ?Create 2nd BP account and post anonymously;)
i would just dm you the list if someone interested, I don't want to make noise and like this guy is mad
in vimeo.com video:
843372979/8e2e83d257?share=copyAlso if you subscribe therealdeal.com it's kinda like investigative journalism for multifamily, almost everyname that's mentioned there is bad guy lol
- Member since 2019 · 7k+ posts · 4k+ votes2y
also i've mentioned in that Ashcroft thread, that some of the bridge-loan lenders have intentionally created conditions where they approve the loan so they can bankrupt the GP/LP syndication for cheaper assets to acquire. Literally in this business, there's no need to become GP/LP, lender can become the GP too if you think about it.
- 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Quote from @Amit M.:
Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ?Create 2nd BP account and post anonymously;)
You won’t make me mad.
I know some of the folks that have been involved in our content may be in deep trouble and could lose their investors capital. I feel it’s imperative that we shine a light on that and bring transparency.But I do agree that once you start naming names as an individual, these gurus and capital raisers will threaten you with legal action, and may follow through, whether it is legit or not.
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
@Chris Seveney - Yeah, it's very sad. BiggerPockets has become a joke for this topic. No accountability measures but a whole lot of self-promotion.
@Scott Trench To be honest, while insights here are pretty useful on BP, I'm finding myself going to other websites for info and better discussions on certain topics. Hopefully you can help fix this!
- Feel free to DM - I'll compile a list and start a new post. I doubt I have any stake in any of the GPs you've mentioned.
Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ? - 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Quote from @Forest Wu:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
@Chris Seveney - Yeah, it's very sad. BiggerPockets has become a joke for this topic. No accountability measures but a whole lot of self-promotion.
@Scott Trench To be honest, while insights here are pretty useful on BP, I'm finding myself going to other websites for info and better discussions on certain topics. Hopefully you can help fix this!
Thanks for the feedback.
We are investing in a new brand called PassivePockets to specifically address this problem.
In the meantime we have a structural problem. This is a public forum. Anyone can see who is posting what, and our content often ranks on Google. We ask people to use their real name.
Having people rip on syndicators is easy when there is no consequence, and you can do it anonymously on Wall Street Oasis.
Getting factual feedback with real people is way harder. Even if your feedback is true, GPs will (and ARE) send legal notices to take down posts to scare people into submission.
If you see self promotion going on, let us know and we will moderate it.
- As someone also on the outside looking in, I'm stunned that there is little to no info on BP about LPs' experiences from investing with syndications over the past few years. The only thing that I see are self-promotions or suspicious accounts promoting some GPs.
Quote from @Amit M.:
@Jay Hinrichs regarding your point #8, what is interesting going forward is seeing how capital calls play out. What percent of GPs making capital calls will actually manage to minimize losses vs GPs that end up loosing all that money too for the LPs?
Unfortunately LPs, in addition to being in bad deals are also deciding on capital calls. Personally I think more often than not it will be throwing out good money after bad, but seeing which capital call end up saving the day and which won’t will be interesting.Another good question is if the syndication failure rate will be lower or higher than during the Great Recession of 2008-2010. Of course we didn’t have as active of a BP, social media, etc. scene back then. But flipping SFHs was out of control during that time and got a lot of media attention. I think syndications were less known to the general public back then compared to this cycle
Some interesting post-mortem analysis to be had for sure; I’m just relieved that I’m sitting on the outside looking at all this. But it’s times like this that create valuable investing lessons to be had nevertheless.
It could just be that some LPs are unaware of what's happening but I highly doubt that. There are enough keys being handed back to the bank that I feel like there should be some level of discourse here - Member since 2019 · 7k+ posts · 4k+ votes2y
Quote from @Forest Wu:
Feel free to DM - I'll compile a list and start a new post. I doubt I have any stake in any of the GPs you've mentioned.Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ?I will give it to you personally as long as you do not broadcast and posting it
or
ask me for more details about it
or
quote me on these lists.
I don't want to be involved in any legal lawsuit or something like that.You can also complete your own list by:
1. following every therealdeal article
2. following CBRE/CoStar report
3. Following few names in Twitter
4. Following a lot of LP forumI used to be curious about these lists too in the past (as I wanna become GP too in the future) but over the years I realized 80% of the outcome of any real estate investment in the past is heavily dependent on market structure and market cycle.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Carlos Ptriawan:
Quote from @Chris Seveney:
This post has 30+ comments, but has anyone actually roasted a GP yet?
Chris I have list of 25 GP to avoid.
But if I post this I would have 30 people mad at me and maybe the BP CEO too.
Why I shall take the risk ?That video you shared "no one could see interest rates rising..." Really, hmmm lets print $6T and think that they will stay at zero....
7e investments53 Reviews - Member since 2019 · 7k+ posts · 4k+ votes2y
Also, if you read the history of a Fund or even a CrowdStreet Report from a year ago, even before covid you can see some asset classes like Hospitality already had trouble even before covid (2017-2021), I think about 10-20% of hospitality deals around these time frame is on trouble.
Post-covid you would see more office syndication gone foreclosure.For multifamily there was news yesterday that even Invesco is selling their multifamily in Bethesda,MD 25% from their 2016 valuation although they used fixed-debt in 2016. That was crazy we're talking about Invesco here.
You should read NYT article about BlackRock's suspicious NAV valuation.Cred_IQ reported 50% CRE is on trouble.
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