General Partner on Motel Investment has gone silent!!!

Syndications & Passive Real Estate Investing
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General Partner on Motel Investment has gone silent!!!

David Ptak
Investor · San Diego, CA · Member since 2016 · 49 posts · 8 votes

I participated in an investment in a motel property under the Brand "Extend-a-Suites" in El Paso, TX. The GP named David Gerlt out of Newport Beach, CA used Quinalt Investments, LLC as the operating business for the investment. 

This David Gerlt a member of Bigger Pockets has disappeared. I can't reach him. I've tried emails, phone, bigger pockets. This guy took my investment and disappeared. 

If there Is anyone that can offer their expertise on what options I may have I would greatly appreciate it. This person sent an annual report and a few letters updating the investors on the motel but that all ended in 2020. It's been 4 years now and I've heard nothing.

Thanks in advance for any replies!

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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
2y
Quote from @David Ptak:

I participated in an investment in a motel property under the Brand "Extend-a-Suites" in El Paso, TX. The GP named David Gerlt out of Newport Beach, CA used Quinalt Investments, LLC as the operating business for the investment. 

This David Gerlt a member of Bigger Pockets has disappeared. I can't reach him. I've tried emails, phone, bigger pockets. This guy took my investment and disappeared. 

If there Is anyone that can offer their expertise on what options I may have I would greatly appreciate it. This person sent an annual report and a few letters updating the investors on the motel but that all ended in 2020. It's been 4 years now and I've heard nothing.

Thanks in advance for any replies!

 Just out of curiosity, what took you so long to start looking for him? 2020 was 4 years ago; it seems to me that time was of the essence in trying to salvage an investment. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @David Ptak

    What’s the address

    I can tell you if he still owns it

    Have you skiptraced him to get new contact information?

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  • Danny Polanski
    Chicago, IL · Member since 2020 · 184 posts · 182 votes
    2y

    I would start with your states attorney general. They usually have a free online portal for fraud ime. And they will follow up. 

    0Reply
  • David Ptak
    OP
    Investor · San Diego, CA · Member since 2016 · 49 posts · 8 votes
    2y

    @Chris Seveney

    Hi Chris. This is the address.

    500 Executive Center Blvd, El Paso, TX 79902

    Thanks for your help!

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @David Ptak:

    @Chris Seveney

    Hi Chris. This is the address.

    500 Executive Center Blvd, El Paso, TX 79902

    Thanks for your help!


    owned by Relianse Extv LLC which was never owned by a Quianlt investments or a David Gerlt.

    The only file I can find on record is they were a lessee to Ace hospitality managers

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Chris Seveney:
    Quote from @David Ptak:

    @Chris Seveney

    Hi Chris. This is the address.

    500 Executive Center Blvd, El Paso, TX 79902

    Thanks for your help!


    owned by Relianse Extv LLC which was never owned by a Quianlt investments or a David Gerlt.

    The only file I can find on record is they were a lessee to Ace hospitality managers


     he is pretty easy to find online, linkedin etc as it appears if its the right one he is an attorney. 

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  • Scott TrenchPro Member
    Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
    2y

    A lot of accusations of GPs ghosting LPs going on right now. 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Scott Trench:

    A lot of accusations of GPs ghosting LPs going on right now. 


    well this one sounds like if the info is accurate money was collected and just absconded with. 
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  • Chris SeveneyBusiness Member
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    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Scott Trench

    People thought last year we reached the peak but reality is we are just scratching the surface as many deals that were in trouble were hoping for rates to come down have not - so it’s gonna get worse before it gets better

    This one seems sketch to me honestly as if original poster is reading this why wait four years ?

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  • Adrian Silva
    Realtor · El Paso, TX · Member since 2014 · 48 posts · 18 votes
    2y

    Wow that's wild. Public records show a deed transfer from Ace Hospitality Managers LLC to Relianse Extv LLC on 11/16/2022.

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2y
    Quote from @David Ptak:

    I participated in an investment in a motel property under the Brand "Extend-a-Suites" in El Paso, TX. The GP named David Gerlt out of Newport Beach, CA used Quinalt Investments, LLC as the operating business for the investment. 

    This David Gerlt a member of Bigger Pockets has disappeared. I can't reach him. I've tried emails, phone, bigger pockets. This guy took my investment and disappeared. 

    If there Is anyone that can offer their expertise on what options I may have I would greatly appreciate it. This person sent an annual report and a few letters updating the investors on the motel but that all ended in 2020. It's been 4 years now and I've heard nothing.

    Thanks in advance for any replies!

     Just out of curiosity, what took you so long to start looking for him? 2020 was 4 years ago; it seems to me that time was of the essence in trying to salvage an investment. 

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  • David Ptak
    OP
    Investor · San Diego, CA · Member since 2016 · 49 posts · 8 votes
    2y

    @Chris Seveney

    It’s 3.5 years since I tried posting here about this but I was trying myself to reach out well before. I was trying to give the benefit of the doubt since there was a pandemic. I really had no idea people could act like this. I just buried my head for a while hoping things would turn around. I thought no news might be good news for too long. I’d like to fight this but it sounds like I have no recourse at this point. I had no idea you could sign a contract and people could just walk away with your money and do whatever they want with it.

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  • Craig Janet
    Member since 2019 · 223 posts · 261 votes
    2y

    You can file a claim in small claims court. In my area it's up to 10K. With a signed contract it should be a slam dunk to get a judgement. Collecting the money is another story.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @David Ptak:

    @Chris Seveney

    It’s 3.5 years since I tried posting here about this but I was trying myself to reach out well before. I was trying to give the benefit of the doubt since there was a pandemic. I really had no idea people could act like this. I just buried my head for a while hoping things would turn around. I thought no news might be good news for too long. I’d like to fight this but it sounds like I have no recourse at this point. I had no idea you could sign a contract and people could just walk away with your money and do whatever they want with it.


    Oh Man in real estate investing this is so much more common than one would even have a clue about. As a HML since the late 80s this space along with the syndication space is just full of these stories. it is so important to make sure you invest with sponsors that are rock solid.. Or only invest what you happy to walk away from if your taking a flyer with someone starting out with no real track record.
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  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    2y
    Quote from @David Ptak:

    I had no idea you could sign a contract and people could just walk away with your money and do whatever they want with it.

    I mean...he didn't just walk away and do whatever he wanted with it...you (at some point) felt that he wasn't upholding the contract and chose to sit back and wait. If he did use the funds inappropriately, which may or may not have happened, then there is recourse through the courts. But you have to actually start the process.

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  • Paul Azad
    Member since 2024 · 162 posts · 232 votes
    2y

    David, please talk with a lawyer about this, there may be criminal, ie SEC violations, or at least civil claim you can bring. If you don't, you are kind of complicit in the all the crimes he may have committed since and in the future against others you don't even know about yet, which you could have helped prevent. A better world can only be made not granted. sorry if this sounds a bit harsh

    1Reply
  • Ian IppolitoBusiness Member
    Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
    2y
    Quote from @David Ptak:

    I participated in an investment in a motel property under the Brand "Extend-a-Suites" in El Paso, TX. The GP named David Gerlt out of Newport Beach, CA used Quinalt Investments, LLC as the operating business for the investment. 

    This David Gerlt a member of Bigger Pockets has disappeared. I can't reach him. I've tried emails, phone, bigger pockets. This guy took my investment and disappeared. 

    If there Is anyone that can offer their expertise on what options I may have I would greatly appreciate it. This person sent an annual report and a few letters updating the investors on the motel but that all ended in 2020. It's been 4 years now and I've heard nothing.

    Thanks in advance for any replies!


    In my opinion, good sponsors communicate regularly (and at a minimum are sending yearly financials and quarterly updates). I personally would not have been okay with 4 years of silence. In my opinion, 4 years means that you're very unlikely to ever hear from him again. 

    If he absconded with your money then you can report him to the SEC and other authorities for a crime.

    If it wasn't fraud but simple incompetence (and he lost the money), then that isn't a crime and your options are more limited.

    Your legal contract (and/or the state laws the entity was incorporated in...depending on where) most likely requires the sponsor to share books and records with you (so you can at least know what happened). If they don't then they are exposed to legal penalties.

    A good attorney can advise you on this and all of your options.


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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @David Ptak:

    @Chris Seveney

    It’s 3.5 years since I tried posting here about this but I was trying myself to reach out well before. I was trying to give the benefit of the doubt since there was a pandemic. I really had no idea people could act like this. I just buried my head for a while hoping things would turn around. I thought no news might be good news for too long. I’d like to fight this but it sounds like I have no recourse at this point. I had no idea you could sign a contract and people could just walk away with your money and do whatever they want with it.


     Any update on this?

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