All Forum Posts by: Darrell Odum

Has anyone else seen the video from Shaun Cohen?  I'm wondering how we can form a collective group to discuss this.  Anyone have a suggestion?

Shaun Cohen has just sent a video to investors.  He lays out possible scenarios and talks a pretty good game.  I know that the best chance of getting the principal back would be if there was a genuine workout with EB.  The problem is at this point, we don't know who to trust.  Has anyone else seen this video and if so, what do you think?

Unfortunately, I am forced to admit that I am also in the sinking EB "boat".  I had many misgivings almost 3 years ago when I started this string on Bigger Pockets.  I was contacted recently by a lawyer from Florida who was representing a lady investor with EB and he was telling  me he believes this is a Ponzi scheme.  We discussed a possible class action suit.  Maybe that is a way for us to band together to get something done?  I have not replied to him regarding this. I would love further comments from fellow investors.  Please reply quickly as time is of the essence.  Thanks

This does not sound good.  It seems that the facts are coming out.  What is amazing is how long they have been doing this.  I was getting info from them for years before I finally decided to invest.  Worst decision of my life.  Please comment if you have any additional info, good or bad.

Thanks John. I don't think this is a scam, but I am concerned with the underwriting procedures for their properties. Mainly, we have to accept their internal opinion of value for the ARV (After-Repaired Value). I know that income-producing properites are valued by the NOI and Cap Rate, however, the LTV should be low enough to allow for a deal that goes south. If that happens, the value becomes more of a "quick-sale" value rather than a market sale. We have to accept a biased opinion of value in order to base all other factors. I haven't ruled out investing with them but I am just not comfortable with the underwriting protocol.

That's very good info.  Thanks.  From a real estate perspective, what concerns me is that there is no independent verification of the value, after repairs.  In a previous post, someone from EquityBuild said they didn't have appraisals done when doing a deal because the properties would need so much work and it would not be relevant to the final product.  Well, what should be done is a "subject-to" appraisal that determines the value after the repairs are done from a specific list provided, and the value is  "subject to" completion of these items in a workmanlike manner.  These repairs and improvements would be verified after completion to make sure they were done as stated.  The obvious reason that appraisals, or valuations done by owners/principals in a property aren't used by lenders is they are prone to be over-valued and the potential for outright fraud. In a default the value is further reduced by the distressed financial stuation. So the lender may not be made whole.  I think I will continue to invest my money in my own deals.

I am thinking of investing with this company.  It's been discussed in this forum before a while ago.  Anyone with firsthand experience? 

I am thinking of investing with them but it sounds " too good to be true." 

I would like more information from people who have actually invested with them.   One concern is that they don't seem to be using independent appraisers opinion of value.  They may not be as objective as necessary in their valuations.  Please let us know if you have had actual experience with them.