All Forum Posts by: Brett Henricks

Sure Shalane, PM me your email address.

Investors need evidence of malfeasance on the part of Crew, simply Blake and Tonya. And it exists in the KHCA lawsuit. Mark Jennings resigned as Controller of Crew due to Blake basically giving him direction to divert funds to self serving and personal interests of Wittengal and Muro.

It's public record.

PM me and I will share it with you. 

This is what can open the can of worms that the FBI might actually take action on.

Johan, please shoot me a PM and I will send along the contact info for the FBI, Special Agent Kline. I think your detailed insight would go a long way for her in making an argument that something criminal has gone on.

As one investor pointed out, an investment going bad is not a crime but certainly the circumstances here should be looked at by someone like agent Kline who would better know when a line has been crossed.

Typically a DST can not refinance. In a last ditch effort to try and save a property a DST can be converted to a "swinging" LLC. Once done such things become possible. If the effort to save the property is successful it can be converted back to a DST. Problem becomes, your money is tied up for a long time for that all to play out.

I have heard from quite a few investors in Vintage Horizon West, Winter Garden, Florida. Send me a PM I would like to hear about your experience. 

Replying to Harlan's fear of Crew continuing to collect rents and keep his principal for a Decade.

Crew will not be able to continue much longer. One, the loans will be amortizing in the next year or so. So the primary lender will be looking for principal payments too. Two, the primary lender's note is a ten year note. So in 2031/2032 Crew will have to pay the primary lenders note no matter what. Since we know that in most cases Crew hasn't been paying the mortgages foreclosure is likely before then. Crew hasn't paid the bridge lenders and they have already filed their own lawsuits. The future for Crew properties is a couple of years most, probably sooner, as the rumor is they are going to dump the properties. 

Better question for a CPA, but it's likely you can claim losses after everything has been settled and you know what your actual losses are. 

You probably should retain an attorney, not so much for Crew, but for your Broker/Dealer. Their are instructions at the very top of this post, attached to the original post.

For those Versity Investors who were not able to see the webinar yesterday. Here are some takeaways that I have. Please feel free to add takeaways to this Post that you feel I have missed.

Since May, Versity/Brian Nelson, has been holding these webinars to update investors on the state of affairs of the Versity Crew mess. Mostly these webinars left investors with a "where's the beef" feeling. Promises that went unfilled for restarting distributions, lack of evidence or anything really tangible about the real state of affairs of the properties that were being claimed to be returning to the control of Versity/Brian Nelson.

Yesterday's webinar finally had something tangible that hopefully will produce some real results for the investors property interests. Effective September 9th Book and Ladder are no longer the property management. The new property managers were introduced. They are hopefully real "3rd" parties and come with experience. The new property manager for the student housing properties is Redstone. They have previous experience with the Versity properties and come with 750 employees. 80% of what they manage is student housing. Over 168 properties they have an overall occupancy rate of 96% and 80% are occupied 100%. The three multi-family properties will be managed by Avenue 5. Both management companies spoke to how they would be marketing their properties and gave some resume. Both have been on site at the properties for two weeks.

While getting serious property mangement is the biggest takeaway there were some updates on the arbitration. Versity now has control of the bank accounts and Brian claims he has 85 to 90% of everything he needs, whatever that means. It appears Crew stopped paying on almost all the mortgages so there is damage control with the lenders going on. Certainly there is a risk of foreclosure. Again, probably overly optimistic projections of distributions returning now for as many as 80% of the properties by November. Brian put a year to 18 month time frame for the sale of properties. Promises were made for audit results by late October. Individual property webinars will return in October.

Certainly better than past webinars but we still need to see "hard" data on our properties in real time and tangible results reported by the new property management. 

Really good stuff Johan. Thank you so much. So the Bridge lender has an equity position. He doesn't have collateral in the Real Estate? Help me with that.

Does the position decrease as investors put money in to eventually take out the Bridge lender?

Investors get a fractional interest, i.e. 0.934%, or something. Is a equity position the same kind of math?

Ultimately, whose loan is it? Crews? Or the property and investors?

Hopefully it's CREW, they can go bankrupt all they want. The investors could still get some kind of money out when the property is sold. Unfortunately that's not what I have heard.

So let me join some of this conversation on the Post. Some of this has been in the Post before so bare with me.

First, you can sue CREW, but at this point your damages are the missed distributions. An attorney will likely cost you more than that. Your property is still a going concern as far as you know it. It is collecting rents and marketing property. There is a lot of conversation and communication from employees and now even a renter that there is gross mismanagement going on. But your property still is not a loss, yet. You have recourse with the Broker/Dealer for getting you into this mess. See my very first post where we have supplied various tools which include attorneys that do this kind of thing as far as your Broker/Dealer. Obviously going with attorney's that specialize in this type of thing might be an advantage.

Second, CREW currently has a $47 million judgement on the Apex South property to a Bridge lender. It is public record. They have the end of August to respond and so far have not. The pending $56 million law suit with that Bridge lender will likely go the same way. The Court has either got very feeble and weak response from CREW or none at all. Also public record. 

I would like to hear more from Jane A. about the Bridge loan being to the Sponsor and not the property. Please tell me more about that.

Not sure how to answer your question Thomas. Even the most sincere fiduciary broker/dealer would not have known that once Versity became Versity Invest and then CREW (all after Brian Nelson lost his company, Versity, to Balke and Tonya, who are Versity Invest and then Crew, that they would take investors money and not pay back the Bridge lender. 

What your broker/dealer who is a fiduciary should have told you is not to invest with a DST Sponsor who uses Bridge loans in the first place. Bridge loans are extremely RISKY.