711 Rescue - does it help LP in case of imminent foreclosure
Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes
711 Rescue - does it help LP in case of imminent foreclosure
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Ronald Rohde:
Have you contacted a lawyer? SEC will help only much later and only to try and seek jail or financial remedies.
You're trying to save the property today? You need to be talking to the lender.
I dont know anything about this company but it sure sounds like and advance fee scheme. And it sounds like OP is smart enough to know not to send 65k up front only to never see it again and get no help.. Sometimes a good commerical Broker could come in and deal with the bank and or their captial markets.. Just another tail of MF not working for investors seems to be a real run on it these days.
19 Replies
- 1yRandall AlanPro MemberInvestor · Lakeland, FL · Member since 2017 · 1k+ posts · 1k+ votes
I will post this as a cautionary tale... up front - I know nothing about the company you mention. So I am not speaking about them whatsoever. But it sounds like they are just positioning themselves in the middle of your 'deal gone bad' to make some money for themselves. A lot would have to go right for them to be able to help. Notice how they presume they are going to buy the asset at a substantial discount from the lender. Maybe that happens... but what if it doesn't? Again, knowing nothing about this particular company, my bet is that type of company will require money up front just to consider whether they can help you out. Maybe it's a processing fee, an application fee, etc? So now you are throwing good money after bad probably without a guarantee of any actual performance of the company until much later down the line. If you have to front money to them before they perform, I would be very careful. I have personally seen that scenario take place and what ultimately happened was that the company just came back to the debtor and said, "You have to come up with $XXX,XXX for us to be able to qualify you for help. In short, it was an unrealistic ask on the part of the company, and they knew it, but didn't care because they had already made their money off of the up-front fees they charged the debtor and ultimately didn't care whether the debtor got help or not. My buyer was charged $4,000 by a company to try and get them a loan when it was pretty obvious they weren't normally qualified. They ended up with no help, and less money in their bank account.
So I would definitely do some independent research on any company that is actively offering life-lines to real estate companies in trouble.
All the best!
Randy
- Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1yThank you @Randall Alan. I did ask the other LP what kind of due diligence he and other LPs have made. If I have a JV with other investors and we need to pursue legal actions, I always involve the other investors when interviewing attorneys. I would not pay for anyone I did not interview myself. Thank you for the advice.
Quote from @Randall Alan:
- 1yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Have you contacted a lawyer? SEC will help only much later and only to try and seek jail or financial remedies.
You're trying to save the property today? You need to be talking to the lender.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Ronald Rohde:
Have you contacted a lawyer? SEC will help only much later and only to try and seek jail or financial remedies.
You're trying to save the property today? You need to be talking to the lender.
I dont know anything about this company but it sure sounds like and advance fee scheme. And it sounds like OP is smart enough to know not to send 65k up front only to never see it again and get no help.. Sometimes a good commerical Broker could come in and deal with the bank and or their captial markets.. Just another tail of MF not working for investors seems to be a real run on it these days. - Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1yHi Ronald,
Quote from @Ronald Rohde:
Thank you for the reply. Do you know of any good syndication attorney that could help us handle this? I do see the language in the PPM that would allow us to vote the manager out. Want to discuss this with fellow LPs. I am looking into the lender info. - Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
Jay, it does look like one of the strategies of this 711Rescue is to restructure the loan for their clients, but at 2x DSCR! Whoever qualifies for that probably won't need them.
Yes many GPs have experienced hardship but you can see those who really care about what they are doing and those who don't. Most will work hard when they are doing the capital call (a few of my deals did that) but some actually called to discuss the situation. I think so far all the capital calls have been successful. Some used more creative ways to handle the needs but it is still a capital call and dilutes the return (if anything left). Of course most GPs have personally put in money to keep the deals from sinking. But this one doesn't return investor phone calls or request for financials. I won't fault those syndicators that have stopped distribution or even doing capital calls if they do spend time manage the property and try to find solutions to the problems.
I suggest BP have a hall of fame and hall of shame for these syndicators.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Marina Wong:
It does look like one of the strategies of this 711Rescue is to restructure the loan for their clients, but at 2x DSCR! Whoever qualifies for that probably won't need them.
Yes many GPs have experienced hardship but you can see those who really care about what they are doing and those who don't. Most will work hard when they are doing the capital call (a few of my deals did that) but some actually called to discuss the situation. I think so far all the capital calls have been successful. Some used more creative ways to handle the needs but it is still a capital call and dilutes the return (if anything left). Of course most GPs have personally put in money to keep the deals from sinking. But this one doesn't return investor phone calls or request for financials. I won't fault those syndicators that have stopped distribution or even doing capital calls if they do spend time manage the property and try to find solutions to the problems.
I suggest BP have a hall of fame and hall of shame for these syndicators.
bp came out with Passive pockets thats where you will find syndicators and reveiws. I am only in two syndications and my GP just refinanced us and got 5.7 I think plus 3 mil cash out that is going into further reserves.. I dont personally care about distributions as its just pocket change but i do care about the principal and getting some equity when they are sold..
I certainly can see how this all happened though Guru's charging folks how to be a synidcator so lots of beginners.. then of course competing offerings and knowing how investor gravitate to the highest returns without really understanding the risks etc. - Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
I saw Passive Pockets before I post this. Looks like it was launched in Nov 2024. While I know BP founder started syndicating a while ago, I wonder why they wait till now to launch PP. Many of the investors I know have dialed back on their private equity investment or have changed to doing debt instead of equity so it was not prime time. I guess they think these investors are accredited so a fee structure is a good model. I am not sure how many investors are in PP. Maybe they should use Richard Wilson's model and only charge sponsors. I think that would be a win-win for everyone.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Marina Wong:
I saw Passive Pockets before I post this. Looks like it was launched in Nov 2024. While I know BP founder started syndicating a while ago, I wonder why they wait till now to launch PP. Many of the investors I know have dialed back on their private equity investment or have changed to doing debt instead of equity so it was not prime time. I guess they think these investors are accredited so a fee structure is a good model. I am not sure how many investors are in PP. Maybe they should use Richard Wilson's model and only charge sponsors. I think that would be a win-win for everyone.
not sure if PP cost money for BP members does it ?? and for sure I would think BP charges sponsors to advertise on the forum just like they charge to advertise on this forum
they are having some sort of event and the guest I saw were Brian Burke ( top shelf ) and Jeremy Roll ( another wickedly smart dude) compared to the guru trainers who I really dont know much are anything about so cant comment on them. But these two live and work it and dont sell e ducation. - 1yRene HosmanPro MemberRental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
Quote from @Marina Wong:
I wonder if anyone has heard of 711 Rescue (https://711rescue.com/) and can let me know if this kind of company might be able to help the LPs in case of imminent foreclosure.
I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly. They stopped paying the lender and wanted to work something out with the lender but the time is running out (ie the management company did not do any significant improvement during the forbearance period)
One of the LP just emailed me and said we need to raise 65k to enlist help from this company. Any info on what you think can be helpful for the LPs is greatly appreciated. If you know of any legal entity in TX that can help in a case where GP is not doing their job (maybe a branch of SEC), please let me know.
TIA
Hey Marina, I'm so sorry you're dealing with this, what a terrible situation.
I'm wondering if you've ever looked at PassivePockets.com ? While the forums here may be helpful, those forums are private and specifically for LPs of any syndication deal, that niche group may have more expertise for you in this situation.
To clarify your question - BP is not syndicating any deals itself so the reason for the charge for PassivePockets is charged on both the syndicator side and on the LP side, though LPs pay a marginal amount, less than $500 annually. For any LP who is likely spending a minimum 25k investment, this is a no-brainer expense, and quite small. It ensures the community is full of active LP investors, not just anyone. This is a one-of-a-kind closed and private community where every member is vetted before they are admitted. The reason for that is that PassivePockets has two different kind of memberships one for fundraisers/GPs, and one for LPs. Certain forums are private for LPs only, and those with GP memberships cannot access those forums. That is where LPs can feel free to share their real experiences without fear of any potential bad blood or retaliation from GPs. This is the only way we've found that LPs can feel safe enough to share their true experiences - good, bad, and ugly.
There is a free 7-day trial of PassivePockets available if you'd like to check it out before committing to the membership
Best of luck, and again, I'm sorry for the situation you're in that's really awful.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Marina Wong:
I wonder if anyone has heard of 711 Rescue (https://711rescue.com/) and can let me know if this kind of company might be able to help the LPs in case of imminent foreclosure.
I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly. They stopped paying the lender and wanted to work something out with the lender but the time is running out (ie the management company did not do any significant improvement during the forbearance period)
One of the LP just emailed me and said we need to raise 65k to enlist help from this company. Any info on what you think can be helpful for the LPs is greatly appreciated. If you know of any legal entity in TX that can help in a case where GP is not doing their job (maybe a branch of SEC), please let me know.
TIA
Just looking at their website, it does not look professionally done and I would be very cautious. If they charge $65k upfront that would even be more suspicious. Who is the person behind the curtain? What is there name? Did you meet them or see them? If i was giving someone 65k I would be on a plane and meeting them in person.
Cannot say this about this website, but there are plenty of scams out there to take advantage of those in distress, including syndicators. I know of one who sent millions for a loan only to be scammed.
7e investments53 Reviews - Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
Yes I do like Brian Burke. He seems to be a decent and smart guy though I have not invested with him. Jeremy is more like a capital raiser in some deals and I know he is super experienced. He is knowledgeable but he has no control over the GP. When deals go south (yes it has happened to his deals) there's not much he can do.
- Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
Thank you for reaching out and give some clarification for the PP structure. I know Brandon, the part owner of BP is not syndicating on BP. I am not sure how active his company Open Door is on BP. Frankly I used to be on BP a lot, then when I started doing syndication, no one discussed much about syndication on BP so I just went to other places to learn. When I come back maybe 2 or 3 years ago, I noticed a lot of people here on BP are talking about syndication too. Anyways, I might take advantage of the free trial. I am in a large syndication group too where GPs are not even allowed. It is absolutely free. Not sure how much you know about Richard Wilson. He holds meetups for family offices around the world and those are free to LPs (at least those in the US). While I don't object to spending money to do one's due diligence, I don't know if $500 is called for when you can get very high quality syndication groups/meetups/information for free. Yes I know people spend hundreds of $ for Best Ever and other meetups just to meet other LPs/GPs, but those are in person meetups where they have to pay for a venue. BTW, how many LP members do you have currently in PP?
- Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
I agree it is not the most professional website I have seen. Hopefully I will learn more about them when I talk to the LP who brought this up to me on Monday.
- 1yRene HosmanPro MemberRental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
Quote from @Marina Wong:
Thank you for reaching out and give some clarification for the PP structure. I know Brandon, the part owner of BP is not syndicating on BP. I am not sure how active his company Open Door is on BP. Frankly I used to be on BP a lot, then when I started doing syndication, no one discussed much about syndication on BP so I just went to other places to learn. When I come back maybe 2 or 3 years ago, I noticed a lot of people here on BP are talking about syndication too. Anyways, I might take advantage of the free trial. I am in a large syndication group too where GPs are not even allowed. It is absolutely free. Not sure how much you know about Richard Wilson. He holds meetups for family offices around the world and those are free to LPs (at least those in the US). While I don't object to spending money to do one's due diligence, I don't know if $500 is called for when you can get very high quality syndication groups/meetups/information for free. Yes I know people spend hundreds of $ for Best Ever and other meetups just to meet other LPs/GPs, but those are in person meetups where they have to pay for a venue. BTW, how many LP members do you have currently in PP?
Great question about how many members, I'm not entirely sure but @Lindsey Buxton may have some more clarifying information about PassivePockets!
I will say from personal experience, I think that because it is a paid platform that people take it more seriously and are more active in the community. So I would say even though it may likely be smaller in numbers than some free groups because it requires users to purchase membership, the members of the community are very active and engaged
- Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
Just had a meeting with the LP who brought me the news. Apparently there was supposed to be an emergency meeting last week with all GPs and LPs but somehow I did not get the email. The LP said he now thinks no other LP got the email either because no LP besides him showed up. I got from this LP the name of the owner of 711Rescue: Zak Shaik. The LP got it from a friend who is in some kind of real estate mentoring program. They were not able to get any references. One of the GPs paid for the money up front to engage 711Rescue and they need to give part of the ownership over to Zak. My preliminary research on Zak has not shown much negative things yet. So we will see if he indeed will do what he said he would do and will report back.
- 1yRene HosmanPro MemberRental Property Investor · Denver, CO · Member since 2024 · 583 posts · 653 votes
Quote from @Marina Wong:
Just had a meeting with the LP who brought me the news. Apparently there was supposed to be an emergency meeting last week with all GPs and LPs but somehow I did not get the email. The LP said he now thinks no other LP got the email either because no LP besides him showed up. I got from this LP the name of the owner of 711Rescue: Zak Shaik. The LP got it from a friend who is in some kind of real estate mentoring program. They were not able to get any references. One of the GPs paid for the money up front to engage 711Rescue and they need to give part of the ownership over to Zak. My preliminary research on Zak has not shown much negative things yet. So we will see if he indeed will do what he said he would do and will report back.
Interesting that only one person showed up?? Please keep us updated on how this unfolds!
- 1yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votesI think your need a corporate and litigation attorney. Where is the property/GP entity located? I can send a referral
Quote from @Marina Wong:
Hi Ronald,Quote from @Ronald Rohde:
Thank you for the reply. Do you know of any good syndication attorney that could help us handle this? I do see the language in the PPM that would allow us to vote the manager out. Want to discuss this with fellow LPs. I am looking into the lender info. - Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes1y
The property is located in TX, near Houston if that matters. There are several GPs. One of them is in TX, another one in MA and I am not sure about the remaining.
TIA
Join the conversationCreate a free account to reply, vote on answers and follow this thread.