Who Has Done a Syndicated Deal with Scott Meyers?
Kenmore, WA · Member since 2017 · 9 posts · 3 votes
Who Has Done a Syndicated Deal with Scott Meyers?
Most Popular Reply
Member since 2022 · 4 posts · 4 votes
1yAs Jeff very nicely pointed out, I am deeply concerned about Tricore Fund I and will not be investing again with Scott. It's nothing personal, just business. Communication was rocky from the start and the repeated attempts to boost occupancy have done nothing but slide downward month to month. I'm at the point where I want them to liquidate even at a slight loss. It's time for the portfolio to trim some losers or actually refinance when they say they will. Tons of overpromising and hand waiving rather than results. IRR is dropping like a rock, and it's clear to me inadequate sensitivity analysis around interest rates and occupancy stabilization was done. The Canton facility has hovered near 10-12 percent occupancy since last year and utility expenses are 4x what other facilities in the portfolio exhibit. Investing in Ohio requires stupidly complex K-1 forms for the invididual partner (I'm a sucker for doing my own taxes). Sure, the interest rate environment has changed. Sure, cap rates have changed. But that does not change the fact that occupancy is dismal.
30 Replies
- Rental Property Investor · Cincinnati, OH · Member since 2017 · 258 posts · 207 votes5y
I have not done a deal with him, but I have met him numerous times and feel he is a man of good character.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes3y
I’m in his Tricore storage fund. I would not invest again. There has been no distributions for 2 yrs. There are no quarterly reports.
- Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes11mo
Quote from @Jeff Fortuna:
I’m in his Tricore storage fund. I would not invest again. There has been no distributions for 2 yrs. There are no quarterly reports.
What? You should get a monthly report, but quarterly is the bare minimum! Sorry to hear about that.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
@Jeff Fortuna
Sorry to hear that. For people reading this - I don’t know the sponsor and this is a general comment but if a sponsor had issues reporting to their customers that should be a giant red flag. Communication and trust is the key to any fund.
7e investments53 Reviews - Investor · Fishers, IN · Member since 2012 · 520 posts · 499 votes3y
The four partners in TriCore Storage Fund I (MGT1) each have over 15 years in the self storage industry and have syndicated over $160 Million in self storage projects during that time. Our track record of over 36% IRR to our investors is hard to match in this industry or any other (and that includes two recessions, unlike most of the currently active syndicators in our space).
To clarify some of the questions, we did not project a quick sale at a low cap rate with aggressive rent appreciation, nor were our projections based on 2021 occupancy levels. We would not have been able to attract a single investor with that strategy.
Secondly, regarding “Fund I” investors, we are not offering any more single asset or portfolio acquisitions to selectively place certain properties inside or outside of our fund.
As we moved from a syndication model to a fund model, we made several changes to our business model. One was to migrate over to a 3rd party management company for the portfolio. Unfortunately, this relationship did not turn out the way we had hoped, and after falling short of their budgets and projections, we terminated them and proceeded to build out our own property management company to manage the facilities in the fund. This was a costly venture that, combined with several months of lackluster performance, did not allow for distributions to our shareholders.
We don’t ever use the “best case scenario” or quick sale strategies in our projections. Rather, we use a 2-point bump in our exit cap rate with realistic/conservative rent appreciation and occupancy based upon both our internal projections and a thorough market analysis. This is compared against our own internal historical performance with similar properties in the same/similar markets in which we operate.
One component of our communication consists of monthly news updates on the portfolio and individual site performance, which are uploaded to our investor portal, including monthly reporting of financials and individual facility performance. Our investors may login at any time to view or download this information. In addition, we hold live webinars with extended updates and the opportunity for investors to ask questions. Having encountered bandwidth difficulty with our accounting firm and CPA, we replaced them with a national company with capacity to handle our ever-growing portfolio.
Due to the nature of a fund model, the projections we shared with our investors, changes in the post-pandemic market, and the fact that a significant portion of the returns to our shareholders are realized as the facilities become stabilized and begin to churn out cash, high cash-on-cash returns during the first year of this fund – designed to acquire troubled, turn around assets – did not result. Distributions will commence as of Q3 of 2023, and the majority of profit will be realized upon the sale of stabilized assets in year 5, also per our projections.
We excel under current market conditions – the same ones that have many people panicking, as several of the major players in the real estate fund space are reporting losses, forced sales, foreclosures, and SEC investigations. We understand the concern and fear that some investors may have. Fortunately, that same fear and lack of experience in these market conditions have worked in our favor over the last two recessions, which is how and where we have seen our greatest growth and success.
- Member since 2022 · 4 posts · 4 votes11mo
Quote from @Scott Meyers:
The four partners in TriCore Storage Fund I (MGT1) each have over 15 years in the self storage industry and have syndicated over $160 Million in self storage projects during that time. Our track record of over 36% IRR to our investors is hard to match in this industry or any other (and that includes two recessions, unlike most of the currently active syndicators in our space).
To clarify some of the questions, we did not project a quick sale at a low cap rate with aggressive rent appreciation, nor were our projections based on 2021 occupancy levels. We would not have been able to attract a single investor with that strategy.
Secondly, regarding “Fund I” investors, we are not offering any more single asset or portfolio acquisitions to selectively place certain properties inside or outside of our fund.
As we moved from a syndication model to a fund model, we made several changes to our business model. One was to migrate over to a 3rd party management company for the portfolio. Unfortunately, this relationship did not turn out the way we had hoped, and after falling short of their budgets and projections, we terminated them and proceeded to build out our own property management company to manage the facilities in the fund. This was a costly venture that, combined with several months of lackluster performance, did not allow for distributions to our shareholders.
We don’t ever use the “best case scenario” or quick sale strategies in our projections. Rather, we use a 2-point bump in our exit cap rate with realistic/conservative rent appreciation and occupancy based upon both our internal projections and a thorough market analysis. This is compared against our own internal historical performance with similar properties in the same/similar markets in which we operate.
One component of our communication consists of monthly news updates on the portfolio and individual site performance, which are uploaded to our investor portal, including monthly reporting of financials and individual facility performance. Our investors may login at any time to view or download this information. In addition, we hold live webinars with extended updates and the opportunity for investors to ask questions. Having encountered bandwidth difficulty with our accounting firm and CPA, we replaced them with a national company with capacity to handle our ever-growing portfolio.
Due to the nature of a fund model, the projections we shared with our investors, changes in the post-pandemic market, and the fact that a significant portion of the returns to our shareholders are realized as the facilities become stabilized and begin to churn out cash, high cash-on-cash returns during the first year of this fund – designed to acquire troubled, turn around assets – did not result. Distributions will commence as of Q3 of 2023, and the majority of profit will be realized upon the sale of stabilized assets in year 5, also per our projections.
We excel under current market conditions – the same ones that have many people panicking, as several of the major players in the real estate fund space are reporting losses, forced sales, foreclosures, and SEC investigations. We understand the concern and fear that some investors may have. Fortunately, that same fear and lack of experience in these market conditions have worked in our favor over the last two recessions, which is how and where we have seen our greatest growth and success.
Love those zero distributions...I regret every minute of having invested in this fund at this point, because I cannot see the exit strategy forming. I think there are glimmers of hope with the potential for lower interest rates to refinance or attract buyers for some of the facilities, but quite frankly occupancy has not been stable in many of the facilities, and I feel that the Canton property was a poor fit. The utilities are off the chart expensive, occupancy is around 15 percent and very slowly climbing while debt service eats away everything. This was a poor choice in my opinion. It's outside their typical geographical area where most of the team lives and it is in an area they just don't have as much experience in. I'd like to see the team deliver on their continued hand waiving of refinance or sale activities. They just BS down the road every call and no longer answer the hard questions.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes2y
Quote from @Jeff Fortuna:
I’m in his Tricore storage fund. I would not invest again. There has been no distributions for 2 yrs. There are no quarterly reports.
2024 q1 and q2 are over and the storage fund has not issued any distributions because the income statement is losing cash. I do get promises.
- Member since 2024 · 1 post · 1 vote1y
Quote from @Jeff Fortuna:
Quote from @Jeff Fortuna:
I’m in his Tricore storage fund. I would not invest again. There has been no distributions for 2 yrs. There are no quarterly reports.
2024 q1 and q2 are over and the storage fund has not issued any distributions because the income statement is losing cash. I do get promises.
Jeff, Have distributions returned with back payments?
- Member since 2021 · 4 posts · 2 votes1y
Quote from @Tim Reardon:
Quote from @Jeff Fortuna:
Quote from @Jeff Fortuna:
I’m in his Tricore storage fund. I would not invest again. There has been no distributions for 2 yrs. There are no quarterly reports.
2024 q1 and q2 are over and the storage fund has not issued any distributions because the income statement is losing cash. I do get promises.
Jeff, Have distributions returned with back payments?
I believe Jeff and I invested around the same time. Not a nickel in payments to date. For me, thats 3.5 years.
- 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Chris Seveney:
@Jeff Fortuna
Sorry to hear that. For people reading this - I don’t know the sponsor and this is a general comment but if a sponsor had issues reporting to their customers that should be a giant red flag. Communication and trust is the key to any fund.
I dont know this fund but I do know Scott and have been to some of his training events and met many folks who took his training and a few of them I have followed over the years and they have built monstor business's really something.. I suspect this will all work out as its the SS space not MF- Longboat key florida · Member since 2011 · 21 posts · 13 votes1y
Quote from @Jay Hinrichs:
The reason the ss works is because the operator is motivated to collect rents and create value. The fund that Scott sold me has very poor directors (fat cats that are very rich and sleep in all day) the ceo is trying to manage 8 properties all over USAQuote from @Chris Seveney:
@Jeff Fortuna
Sorry to hear that. For people reading this - I don’t know the sponsor and this is a general comment but if a sponsor had issues reporting to their customers that should be a giant red flag. Communication and trust is the key to any fund.
I dont know this fund but I do know Scott and have been to some of his training events and met many folks who took his training and a few of them I have followed over the years and they have built monstor business's really something.. I suspect this will all work out as its the SS space not MF
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Jay Hinrichs:
Quote from @Chris Seveney:
@Jeff Fortuna
Sorry to hear that. For people reading this - I don’t know the sponsor and this is a general comment but if a sponsor had issues reporting to their customers that should be a giant red flag. Communication and trust is the key to any fund.
I dont know this fund but I do know Scott and have been to some of his training events and met many folks who took his training and a few of them I have followed over the years and they have built monstor business's really something.. I suspect this will all work out as its the SS space not MFI have been hearing SS is having similar issues as MF. Speaking with one of our attorneys she mentioned the largest area of defaults she has seen is in SS space as it got over saturated in some markets and rent appreciation has not been as advertised. Cannot comment at all as I know nothing about this fund, but they must be experiencing greater than anticipated issues since last year they noted distributions will commence in Q3 of last year and they excel under the current economic conditions but if Jeff is correct, they are still in the red
7e investments53 Reviews - Longboat key florida · Member since 2011 · 21 posts · 13 votes1y
I am in 2 mobile home CRE Funds and both are distributing an annual distributions north of 8 percent. I am also in a few of the crystal view funds that invest in self storage and they are distributing 8+ annually.
It is not that self storage is a bad industry right now it is the skipper running the cre. a great manager can make a poor location produce! And……I have seen great real estate locations become destroyed by bad management.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes1y
There are no distributions. The ceo told me it is now a growth fund; although 3 yrs ago the salespeople (Scott Meyers) told me that it takes a few months for the distributions to start;
there are 2 types of syndications. 1. Sales pitch oriented 2. Operations oriented. I have learned the hard way to kindly choose operations oriented deals. It’s really frustrating because I am in some other ss funds and they are doing very well.- 1yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesI have no knowledge of the principal or his investment vehicles. His response is over a year old. Jeff has informed us that he still received 0 in distributions.
Quote from @Jeff Fortuna:
There are no distributions. The ceo told me it is now a growth fund; although 3 yrs ago the salespeople (Scott Meyers) told me that it takes a few months for the distributions to start;
there are 2 types of syndications. 1. Sales pitch oriented 2. Operations oriented. I have learned the hard way to kindly choose operations oriented deals. It’s really frustrating because I am in some other ss funds and they are doing very well.
I have two comments about the response Mr Meyers wrote over a year ago. First, if I understand correctly, the syndication made no distributions at the time because money needed to be spent to develop management capabilities for the sponsor. Why were the investors in a real estate investment paying for the sponsors business?
Second, the post reads like a promotional marketing piece with 95% stating how great the sponsor is and how successful their investments have been, while very little is stated that specifically addresses the particular investment the OP is concerned with.
past performance is one thing, I’m also interested in the CHARACTER of the sponsor. Do they take the time to address investor concerns and reach out and call an investor when he expresses disappointment as results are not what was anticipated? Or does the sponsor issue a statement obviously “sanitized” by legal counsel with only a generalized reference to any problems with a general tone of the investor is lucky to have invested with us? - Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Jeff Fortuna:
There are no distributions. The ceo told me it is now a growth fund; although 3 yrs ago the salespeople (Scott Meyers) told me that it takes a few months for the distributions to start;
there are 2 types of syndications. 1. Sales pitch oriented 2. Operations oriented. I have learned the hard way to kindly choose operations oriented deals. It’s really frustrating because I am in some other ss funds and they are doing very well.Have they provided financial updates? What did your K-1's state? You should be getting finnanical updates and projections.
7e investments53 Reviews
- Member since 2021 · 4 posts · 2 votes1y
I'm an investor and have messaged with Jeff privately. He echos the same sentiments that I have, just much more politely.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes1y
So here is the story on the financials for Scott Meyers and Scott Dahin. I get a balance sheet and an income statement. The owners equity has been deteriorating every year and the income statement operates at a loss every year.
Scott will not produce year over year numbers. It is difficult to figure out how much the syndication is losing.
The second point I’m frustrated with is a property they purchased in Ohio. The bought it as a good deal and then destroyed any cash flow - equity by obtaining a huge loan on it. They say that the loan was used to increase its value but it has yet to produce any cash flow.
Im involved personally in other similar syndications and they are doing well with positive monthly returns and real audited financials that show year over year gains. I have really learned my lesson with guru salespeople.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Jeff Fortuna:
So here is the story on the financials for Scott Meyers and Scott Dahin. I get a balance sheet and an income statement. The owners equity has been deteriorating every year and the income statement operates at a loss every year.
Scott will not produce year over year numbers. It is difficult to figure out how much the syndication is losing.
The second point I’m frustrated with is a property they purchased in Ohio. The bought it as a good deal and then destroyed any cash flow - equity by obtaining a huge loan on it. They say that the loan was used to increase its value but it has yet to produce any cash flow.
Im involved personally in other similar syndications and they are doing well with positive monthly returns and real audited financials that show year over year gains. I have really learned my lesson with guru salespeople.
Have you considered legal action to have them produce documentation that most likely is required per the PPM and operating agreement?
This is my recommendation to people in certain instances - not saying this is you but many wait until you get an email that the investment was lost to foreclosure. LP's need to put the GP's feet to the fire.
7e investments53 Reviews
- Member since 2022 · 4 posts · 4 votes1y
As Jeff very nicely pointed out, I am deeply concerned about Tricore Fund I and will not be investing again with Scott. It's nothing personal, just business. Communication was rocky from the start and the repeated attempts to boost occupancy have done nothing but slide downward month to month. I'm at the point where I want them to liquidate even at a slight loss. It's time for the portfolio to trim some losers or actually refinance when they say they will. Tons of overpromising and hand waiving rather than results. IRR is dropping like a rock, and it's clear to me inadequate sensitivity analysis around interest rates and occupancy stabilization was done. The Canton facility has hovered near 10-12 percent occupancy since last year and utility expenses are 4x what other facilities in the portfolio exhibit. Investing in Ohio requires stupidly complex K-1 forms for the invididual partner (I'm a sucker for doing my own taxes). Sure, the interest rate environment has changed. Sure, cap rates have changed. But that does not change the fact that occupancy is dismal.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes1y
Scott Meyers syndication update for 2q 2025.debt service is substantially more than net operating income. Here is what they do: they will buy a commercial building for a few million in a bad location. Step 2 is to refinance the real estate for double what they paid for it. Step 3 is to tell investors that the money is being used to rehab the property to create value. There are zero distributions.
The end result in the last 2 yrs is a vacancy rate of 88 percent. It feels very unethical.
- Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes1y
Quote from @Jeff Fortuna:
Scott Meyers syndication update for 2q 2025.debt service is substantially more than net operating income. Here is what they do: they will buy a commercial building for a few million in a bad location. Step 2 is to refinance the real estate for double what they paid for it. Step 3 is to tell investors that the money is being used to rehab the property to create value. There are zero distributions.
The end result in the last 2 yrs is a vacancy rate of 88 percent. It feels very unethical.
Now this is a thread with some history.
So is Scott taking a percentage for his syndication compensation, then letting investors lose $ until the property gets bought for a loss or foreclosed on
- Longboat key florida · Member since 2011 · 21 posts · 13 votes1y
Scott Meyers hired a young man named Scott Dahin to run the 8 assets in the fund. I’m not sure how Scott Meyers gets paid… it would be too stressful for me to guess
I wish the zoom meetings the syndicators put on would answer year over year gross and net figures and discuss the debt service. The zoom meetings are useless because they do not share pro forma goals. The tuff questions are usually responded with- “ contact us and we will set up a special one on one meeting with the individual investor.”
- Longboat key florida · Member since 2011 · 21 posts · 13 votes11mo
They refinanced canton and they kept the money. They bought it well and then pulled millions out of it. Scott Dahin manages and oversees the asset. I wrote him and am still waiting for a response.
- Member since 2022 · 4 posts · 4 votes6mo
Quote from @Jeff Fortuna:
They refinanced canton and they kept the money. They bought it well and then pulled millions out of it. Scott Dahin manages and oversees the asset. I wrote him and am still waiting for a response.
Jeff, not sure if you saw the latest Feb 17 update, but they used $370,000 in refinance proceeds to pay "deliquent" taxes? I fear my investment is gone on this one unless they can get Canton leased up quickly and get their HS 1 expansion fully cash flowing soon. I honestly don't care about gaining anything on this fund. I would be happy if I got back half my investment so I can invest it. I should have just parked $50K in JEPI and I'd be up a bunch more. This one has soured me on some syndications. I'm going to be much more picky going forward. Definitely will not invest in someone who has successfully done a large "fund" syndicate before. He may have had success on some individual assets, but I feel the fund is straining their internal resources too much as the assets are too spread out away from their geographic expertise.
- 11moHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
I have followed this post for a while and have intentionally not commented. 1. Not having all of the information. 2. Most Syndication LPs I have found approach investments emotionally versus from due diligence.
Don't know any of the parties.
Have owned 9 storage locations and developed 7 of them from ground up. Thus, fully aware of costs, market analysis, operations and financial rewards both Cashflow and equity buildup.
1. What is the name of the Storage location in Canton? Is this one of the main properties in the fund you are concerned with? Don't say yes, only to find out it is not in the fund you are concerned with.
2. Why is the fund not meeting your expectations? From a business standpoint. Forget communications, payouts, etc. What are the functional issues? Why did you originally pick this fund from a business standpoint? Which of those actionable items has failed? Rental Rates, occupancy, build out costs, operational costs, exit valuation, financing structure, etc. Don't respond unless you have a business item.
We don't do Syndications, thus the funding and payout for the syndicators would be under your purview as LPs to have considered.
I'll take a look at it.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes6mo
Scott Meyers gave an update on Feb 17th. canton and high springs lease up stinks of laziness
and Using the 70% purchase price recording to blunt the tax man is a classic business maneuver, though the refi of 370,000 cash out with stanCorp to cover back taxes and pay the cronies Makes me want to buyout the entire fund
- Member since 2022 · 4 posts · 4 votes6mo
Quote from @Jeff Fortuna:
Scott Meyers gave an update on Feb 17th. canton and high springs lease up stinks of laziness
and Using the 70% purchase price recording to blunt the tax man is a classic business maneuver, though the refi of 370,000 cash out with stanCorp to cover back taxes and pay the cronies Makes me want to buyout the entire fund
Jeff, I'm VERY worried about this one. I emailed them demanding a webinar to explain the statement on back taxes. I think they are stretched too thin and too geographically spread out to actively manage their portfolio. I won't invest in another group that operates a fund for the first time, it's very different than a single-asset portfolio. Buying the property in Ohio and leveraging the crap out of it with no occupany disturbs me. They need to lease that thing up quickly.
- 6moHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
Folks no skin in the game. Following since we do self storage.
We love Selfstorage because it is pure numbers. Being an accountant by profession it is so easy to understand operations, financing and market study.
Right now your conversation are Red/Black on a roulette wheel type of decision process. If that is your approach dont invest in Self storage. It is a true numbers driven Investment.
Occupancy day starts at zero. Yes you finance heavily compared to revenue or cashflow stream. To stabilize occupancy may take 3 years in a good market. Are you in a good market both from occupancy and rate standpoint? That should be in your PM or due diligence. It is pure numbers.
Cashflow up front is tight to pay property taxes and other? That is built into the proformas. In a new location we always build in cash flow breakeven at 65% occupancy in phase 1. Phase 2 expansion break even is around 40% occupancy. This includes P/I. Your proforma should have shown Cash negative the first 1 to 1.5 years from 0 occupancy. This would have been funded by the first equity infusions as part of the model.
If you can’t respond or talk in numbers dont invest in Self Storage in the future. It is all numbers. Self storage is the simplest investment to do and understand I have found. The only thing easier is a 3 month CD at a bank. Talk in numbers.
- Longboat key florida · Member since 2011 · 21 posts · 13 votes3w
In December 2022, I invested in a syndication fund through Scott Meyers. Today, I contacted them for updates and was informed that neither the 2026 Q1 nor Q2 reports are available yet. They claim these documents will be "ready soon."
Waiting over half a year for standard quarterly financial performance updates is completely unacceptable. Transparency and timely communication are critical in fund management, and this team has failed to deliver.
I am highly disappointed by their performance and communication standards. If you are considering investing with Scott Meyers or want to hear more details about my experience, please reach out to me directly.
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