All Forum Posts by: GREGG ROOD

I am not sure why anyone would invest with these guys. You don't have to be a real estate expert to see that they have no industry experience.

I have invested in several of their deals over the last 4 years. They changed their business model DRASTICALLY within the past year or so - went from hiring outside, experienced, local property managers, to an in-house Ashcroft management company. They did the same thing with construction companies to do their Value-Add work. They used to market to investors that they hired the best local property managers who knew the market well TO "we can do it better". Hmmm?? Might this have to do with their desire to capture more of the cash flow of the acquired properties? The other issue I have (and why I no longer invest new money with them) is they leave off their web site, deals that have gone full cycle, with low returns. When I invest my hard earned money, I expect the Sponsor to be open and honest. And finally, I believe they are chasing deals and overpaying dramatically (see the low Cap rates they are buying at - very difficult to overcome overpaying for an asset).

I just came across these folks through an unsolicited banner advertisement. Their website is fancy, presentation professional, and history of "past deals" and activity looks compelling. However, I tried to conduct some research on the two firm founders - Anthony Grosso and Christopher Palermo - to find out where they worked before, what expertise they had managing CRE, who they were associated with, etc. - typical due diligence items to gain confidence and assess credibility before turning over any of my hard earned money. I was unable to find any information on either of them from before 2016 when they self-published a book on CRE. One partner was the author of the book and the other partner wrote the forward. On the company's website, they do not publish ANY information on any of their past deals historical performance, actual to pro-forma results, or full cycle results. Way too many Red Flags and lack of transparency. I would be EXTREMELY CAUTIOUS!!!