Urgent: AG Value Add Funds II & III (Ashland Greene), part of AGREOF I Fund – Foreclo

Dallas, Texas
Syndications & Passive Real Estate Investing
3moFollow

Urgent: AG Value Add Funds II & III (Ashland Greene), part of AGREOF I Fund – Foreclo

Heather Smith
Member since 2019 · 3 posts · 1 vote
Hello everyone, I am an LP with a significant investment in Ashland Greene, specifically tied to AG Value Add Funds II & III, both part of the AGREOF I portfolio. As noted in the official sponsor communication sent on Friday, May 22, 2026, senior lenders have halted negotiations. The firm stated that lenders intend to proceed with a full foreclosure on June 2, 2026, and they expect the equity invested in Funds II and III to be completely unrecoverable. With the foreclosure auction less than 10 days away, a core group of LPs is urgently organizing a coalition to protect our collective interests. We are actively: * Consulting with Texas-based securities and commercial real estate litigators regarding an emergency Temporary Restraining Order (TRO) to pause the June 2nd sale. * Pooling resources to fund a formal legal review, books and records audit, and potential breach of fiduciary duty actions. * Coordinating legal strategies tailored for both Self-Directed IRAs (SDIRAs) and regular cash positions. If you are an investor in AG Value Add Fund II, Fund III, or the related AGREOF I fund, please direct message (DM) me immediately. Please include: 1. Your specific fund number 2. Confirmation of your Friday email receipt. Time is absolutely of the essence to pool our voting power and legal resources before the June 2nd deadline. *Disclaimer: This is an informal investor-led coordination group. This message does not constitute legal or financial advice.*
0Reply
433 views

Most Popular Reply

Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
1d

I of course don’t know any specifics about this fund, which means I have no basis to question if the investors have legal recourse. However, I do have informed knowledge of investment compliance in general.

In my experience here is how these things go

  1. 1. Investors find out that they’ve lost money in subject passive investments, connect on social media, and decide that they ‘MUST’ have a basis for a lawsuit.

  2. 2. Investors agree to a modest amount of contribution to engage attorney.

  3. 3. The amount demanded by experienced, knowledgable securities attorney specialist is well beyond what investors want to pay so they engage “third tier” counsel.

  4. 4. Counsel informs them that he needs to hire accountant and so deep dive into the sponsor, offering etc, and therefore needs additional funds upfront.

  5. 5. A number of investors drop out as they don’t want to commit more money, some do raise the funds and continue with legal engagement.

  6. 6. Either the attorney finds that the sponsor fully complied with REG D and so informs investors that the sponsor has a DEFINITIVE defense against any claims absence fraud (98% of the time). Or the attorney finds noncompliance with Reg D which requires more in-depth study.

  7. 7. If attorney finds noncompliance investors are asked for more money to determine if there is actual factual basis for legal action, and if so if a recovery is possible.

Private Mortgage Financing Partners, LLC
WebsiteView Page
1Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Jack Salomoner
    Member since 2026 · 1 post · 0 votes
    2mo

    Hey is legal action being taken here. Happy to join as an LP with a loss. 
    Thanks 

    0Reply
    • Alyson Simpson
      Member since 2026 · 3 posts · 0 votes
      1d

      Please text me 8563513902

      0Reply
    • Alyson Simpson
      Member since 2026 · 3 posts · 0 votes
      1d

      Heather smith please reach out to me as well - you can text 8563413902.

      0Reply
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1d

      @Jack Salomoner curious as to what legal basis there is to take action? 
      There is a difference between a poor investment decision and illegal dealings. Most of the failed syndications in multifamily were due to poor judgement along with limited experience in that field which unfortunately is not illegal. 

      7e investments53 Reviews
      WebsiteView Page
      0Reply
    • Don KonipolBusiness Member
      Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
      1d

      I of course don’t know any specifics about this fund, which means I have no basis to question if the investors have legal recourse. However, I do have informed knowledge of investment compliance in general.

      In my experience here is how these things go

      1. 1. Investors find out that they’ve lost money in subject passive investments, connect on social media, and decide that they ‘MUST’ have a basis for a lawsuit.

      2. 2. Investors agree to a modest amount of contribution to engage attorney.

      3. 3. The amount demanded by experienced, knowledgable securities attorney specialist is well beyond what investors want to pay so they engage “third tier” counsel.

      4. 4. Counsel informs them that he needs to hire accountant and so deep dive into the sponsor, offering etc, and therefore needs additional funds upfront.

      5. 5. A number of investors drop out as they don’t want to commit more money, some do raise the funds and continue with legal engagement.

      6. 6. Either the attorney finds that the sponsor fully complied with REG D and so informs investors that the sponsor has a DEFINITIVE defense against any claims absence fraud (98% of the time). Or the attorney finds noncompliance with Reg D which requires more in-depth study.

      7. 7. If attorney finds noncompliance investors are asked for more money to determine if there is actual factual basis for legal action, and if so if a recovery is possible.

      Private Mortgage Financing Partners, LLC
      WebsiteView Page
      1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1d

      IN addition I dont think a TRO is going to stop a foreclosure by the lender.. thats what BK chapter 11 is for but attorneys to do that will require 6 figure up front retainer . the other issues with the GP is after the fact if the property is lost.. of course I could be wrong about the TRO but I am correct about the chapter 11 that will stay the foreclosure and give folks time to do a work out if there is truly any real equity.

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    1d

    Hi @Chris Seveney Looking forward to grabbing coffee with you personally in Orlando in a couple of weeks. I saw your post and looked into AGROF. It's a real thing, but one thing that is plaguing social media, including BP, are data harvesters...I am 99% sure that's what this post is. If I am wrong, my apologies. The poster has only posted about this event and nothing else. Jack and Alyson are both new accounts with 1 post. The new management group at BP (@Eric Augustyn and the others) I know, are really trying to clean this up, but it's getting really hard to sift through the noise, scammers, and cut-and-paste AI posters. I really miss real dialogue. I stopped engaging on here because of it until is saw how hard Eric and his team are working.

    1Reply
    • Eric AugustynPro Member
      Investor · Chicago, IL · Member since 2017 · 14 posts · 29 votes
      1d

      @Doug Smith - It is getting trickier as we are seeing a lot of posts in relation to upside down RE PE investments (many frustrated first of second time LPs). Myself included on a few investments. With that said, we are rolling out AI to combat this and find suspicious patterns in posting. @Laurence J.

      Look forward to seeing everyone in Orlando!

      BiggerPockets
      1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1d

      too funny AI to Combat AI AI going toe to tow !!! :)

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1d

    I’m contacted weekly by LPs in underperforming syndications looking for representation against the GP or syndicator, often claiming fraud. Within a minute of speaking with most of them, it becomes clear that they cannot explain how the investment was supposed to generate the projected return or how their money was supposed to be returned.

    How can you suggest there were bad acts if you cannot explain how the transaction was supposed to work?

    Something that is not discussed nearly enough is the importance of vetting your LPs beyond confirming that they qualify financially for a 506(c) offering or understanding Reg A and 506(b) requires more time and effort educating those who invest because they inherently attract less sophisiticated investors.

    There are plenty of posts about vetting the GP and the syndication. But at a time when everyone is being taught to use social media to cast a wide net and bring in LPs, there will continue to be a lot of unnecessary aggravation for GPs who accept money from investors who do not understand the investment, its risks, or the limits of their rights.

    I’ve heard horror stories of LPs making baseless claims and trying to take over projects through combative tactics—attempting to cause technical defaults under the real estate loans, withholding information needed for tax preparation, and creating other unnecessary problems. Sometimes they are assisted by what Don calls “third-tier attorneys.”

    GPs should be held accountable for actual misconduct. But GPs also need to vet whether a prospective LP understands the transaction and is someone they want as a partner when things do not go exactly as projected.

    [email protected]
    0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      21h

      i was front and center on one of those hostile investor take overs led by a less than what I would call honest or moral attorney who just bled the investors and the projects ended up going under in the end..

      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      0Reply
    • Don KonipolBusiness Member
      Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
      21h

      Some more really good points from Stuart. We had a limited partner (actually non managing member, which is the LLC equivalent) who began negatively commenting on every email update we sent about a particular investment that had been somewhat of a (small) problem for some time. We had restructured the loan (this is a $4 million 1st mortgage investment we syndicated) and collected a fairly significant amount in forbearance fees. The borrower "missed" the deadline to take us out, and we had the right to record the deed he had signed over to us as part of the forbearance agreement. However, his takeout loan had been held up on issues that were about to be resolved, and we had negotiated an additional $200,000 payoff for 15 days extension. Further, his attorney threatened to sue us if we did record the deed, and although our attorney believed he had no grounds, did acknowledge they would be able to tie us up for at least 6 months.

      Well, the LP raved about how we should have “punished” the borrower by taking ownership; how we as GP s were not acting in the best interest of the partnership, how he’d never invest with us again, how unhappy he was, how much money we cost him, etc. we informed him we were about10 days from payoff, but if he wanted we would personally purchase his interest at exactly what he paid. He jumped at that, we paid him the $100 000 he invested, and10 days later received a payoff of $122,000 on our $100k investment when the borrower successfully completed the refinance.

      Here’s what our syndication attorney told me: 90% of investors NEVER read the PPM or OperatingAgreement. They never ask what, how, or when. They think that receiving monthly or quarterly distributions is the sign that their investment is safe (it’s not, that’s what keeps Ponzi schemes going).

      That being said, GPs don’t help themselves when they avoid phone calls and emails because they don’t want to deliver bad news or answer hard questioning. The truth is that many GPs (sponsors) are “lightweights” with little experience, few professionals, and very “thin” operating/management. Many of the so called (and actually MIS LABELED) real estate crowdfunding sites went out of business because the only experienced personnel they hired where the tech people; the finance and real estate personnel were one year out of undergraduate school.

      Private Mortgage Financing Partners, LLC
      WebsiteView Page
      0Reply
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      21h

      @Stuart Udis - Great post

      at end of day today's society people don't want to take responsibility. 
      I just saw a post in another forum that the commenter was stating owners of rental properties should be held liable for what their tenants do... 

      7e investments53 Reviews
      WebsiteView Page
      0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free