All Forum Posts by: Chris Seveney

Quote from @James Wise:

Quote from @Mike Williams:

We’re aware of the chatter circulating in online forums, as our investors often bring it to our attention. Recently, some misinformation has been shared regarding our investment in Heights on Katy Apartments in Houston.

We typically don’t get involved in forum discussions since they’re meant to be spaces for investors to speak freely, share opinions, and sometimes even vent. A little banter or criticism comes with the territory, and that’s fine. But in this case, speculation has crossed the line into misinformation.

To be clear: the claim that Open Door Capital or its principals “pocketed” $4.4 million from the Heights on Katy investment is false. No such distribution ever occurred. The property was purchased for $70.4 million, and any fees associated with the acquisition were standard and fully disclosed in the offering materials.

Real estate markets over the past two years have been challenging, especially multifamily in Sunbelt regions, and Heights on Katy has not been immune. We’ve worked closely with our partners and investors to navigate those headwinds responsibly, to try and protect investor capital, and to communicate openly throughout the process.

We can’t monitor every forum thread out there, but if you’re an investor (or even a prospective investor) and have questions, just call us directly. Our team is always available to discuss and provide any supplemental information or property specifics with investors.

-Mike Williams
Open Door Capital | odcfund.com/disclosures

So to clarify Mike. You're saying the purchase price was $70.4 Million, not the $66 Million as shown in what appears to be a screenshot from Costar?

Are you saying this screenshot that's been published online is fake and or doctored?

I don’t know about this deal and I’m interested in Mike’s answer, but Texas is a non-disclosure state.  That means that purchase prices aren’t publicly disclosed and CoStar and other data providers are forced to use other means to arrive at an estimate of purchase price.  These methods include reverse engineering the loan amount (like that is even remotely reliable?!).  Sometimes they do contact the buyer, seller, and broker and ask to confirm the price, and sometimes they will share the actual price. And often times they don’t—it compromises their argument for tax protests.

I’ve owned a lot of apartments in Texas (don’t anymore) and I subscribe to CoStar. I’ve looked up my own properties over the years, and once in a while CoStar was right, and often they weren’t. 

if the basis for the allegations lodged against ODC in this thread are based only on a CoStar reported purchase price, there is very likely much ado about nothing here.  Not to minimize the claim that investors lost money—I wouldn’t know. But the only way to know the price, fees, and what the sponsor pocketed is to hear it from the sponsor or their investors.  Costar isn’t much help here—especially in Texas.

What’s your preferred move — hold, flip, or restructure? I’d love to compare approaches with others in the note investing space.

I think forums are almost dead these days. Most of the people contacting me now are seeing me on dozens of podcasts or asking chat GPT or similar about NNN and I pop up. Life is so fast for high income earners they want answers in seconds or minutes to find someone to do business with. They don't want to search for days or weeks.

I am talking people making millions of dollars a year of income or higher.

I haven't gotten a direct lead off this site worth anything in years. Most of it is spam or junk.

If indeed you have the option of taking a 100% financing for your residential and commercial deals, would you consider it useful?

Hi BP Community,

I’m curious how other investors are navigating performing residential mortgage notes. Some investors sell notes they hold to unlock liquidity for new flips or investments, while others prefer to hold them for ongoing cash flow.

A few discussion questions:

- Have you sold performing notes before? What influenced your decision?

- How do you handle due diligence on smaller notes versus larger pools?

- What lessons have you learned in pricing or timing the sale of notes?

Technically the 2nd lien slid into FIRST Lien position when the superior 1st lien got paid off and released. However I agree with the Motion for summary judgment surrounding the QUIET TITLE action affirmed its likely NOT a collectable debt and YES we are getting a more firm legal opinion on that... 

Appreciate the insights....and caution 

Hi BP Community,

I’ve been focusing lately on buying and selling residential mortgage notes, particularly first-position, performing notes. I'm curious to hear how others in this space are valuing and exiting notes.

A few discussion questions:

• What metrics do you weigh most heavily (LTV, payment history, discount rate, etc.)?

• When do you decide to hold a note vs sell it?

• For those who sell, how do you find buyers and structure closing?

Happy to share what I look for as a note buyer too, if that’s helpful for others.

Private funding has become a big part of how investors scale their portfolios.

If you’ve raised or used private money, what tips would you give to someone just starting out?

Hello,

I am on the look for a CRM. I was wondering anyone has any experience with them. How much are you spending for them? 

Stephen