All Forum Posts by: Jim Peret

Can you provide your checklist for evaluating syndication deals?

I have no problem investors losing money or all of it if they don’t have an approach or methodology. They should stick to the stock market.

If you want to help future investors provide them with your matrix and checklist. .

I have lost all of my money on an investment due to the arrogance of the CEO. Was it his fault or mine? Mine. I was looking for a 30% gain and then he did the unthinkable. What was his name? I still remember after 40 years. And it was still my fault.

Maybe partially your fault. CEO lost millions of people money should take some responsibility. He's doing it for a living you're not! We'll never understand how they run their business as good as they do. Seems like we live in a society where few are responsible for their actions.

1 Vote

Don't name the sponsors. I guess they're not responsible for their mistakes. Wish I could loses 1000's of other peoples money and nobody say anything negative about me. But don't think I'd sleep at night if I did.

2 Votes

Quote from @Carlos Ptriawan:

Quote from @Solomon Rosenberg:

Quote from @Christie Gahan:

Quote from @Solomon Rosenberg:

Quote from @Chris Seveney:

@Solomon Rosenberg

Can you share the sponsor so others know for future and to confirm you are taking a 93% loss

That is correct, 93% loss. I don't want to share names, because this was an experienced sponsor who I believe is an honest person who mmade some serious mistakes, investors should do their due diligence on sponsors and also have a good understanding of how multifamily works so you can sense when the risk is high. I'm sharing my experiences so others can learn from my mistakes.

I don't think this is just about honesty. I'm honest and I make mistakes every day. I need to know how you are preventing these mistakes happening again. If someone doesn't want to discuss their mistakes, they should not be investing other peoples money.

I agree that investors have to do due dilligence. My question is, How do you do that if no one publically states names?

To answer your question @Christie Gahan to focus on the sponsor that screwed up, is missing the point.

For sure there is plenty of blame to go around and we can choose to vent on them. Sharing names will not make you or me better investors and will not prevent anyone from losing money in the future.

My point is that if you're going to invest in something understand it enough to know what are the risks to look out for, and be disciplined, don't follow the herd.

I learned many lessons, and I believe it will serve me in my current and future investments.

if you care with capital preservation only invest in syndication that has 10 year outlook including the financing aspect. 5 years is too volatile. Some GP is using 2 years bridge when market cap is 3 and underwriter is accepting 0.9 DSCR , that's asking for trouble lol

2 Votes

I've got a few initial thoughts.

1.Is our investment so bad that's it's only worth 38% of what we paid for it? And they plan it going from .38 to 1.5 -2.0 if it's kept? I'd think there'd be a line of experienced syndicators at 38%. Or maybe some of Brandon's Hawaiian buds.

2.How many people are voting or how many votes are there? Does your vote count for more or less depending on the amount you invested?

3.What happens if they have a capital call and I don't give additional capital?

4.If the future billionaire doesn't want to fund his mistakes maybe they could sell one property to fund the other two?

5. How can you trust someone that was so wrong on his due diligence?

I'm just thinking out loud here and maybe I shouldn't put it all in writing but I don't have any SDP investors to talk to face to face. I have more but I wrote enough.

3 Votes

Quote from @Pat Parrillo:

Hi Nikki,

I've been investing in Milwaukee Multi-Family properties coming up on 10 years now. Are there any particular criteria you are seeking? Cash Flow goals, value add opportunities, number of doors per property?

Milwaukee can be a great market but does take market analysis and there can be quite a bit of diversity in quality of properties not just by zip code but block to block, as you may already be aware. Are you looking to self manage or work with a local property manager? I self managed for many years and the last several work with a property management team, and have recommendations.

Many great agents have already responded to your post as there are many excellent agents in Milwaukee. I am an agent as well, but wanted to start by getting to know your goals first as I may or may not be a fit, but am here to help whether we work together or not. If you have any particular questions about the market feel free to reach out directly.

HI Pat,

Who do you like for property management? Been thinking about hiring one but I've been self managing so long it's hard to give up the cash. Sooner or later I need to.

0 Votes

Milwaukee, Wisconsin

Quote from @Mark Lopez:

the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus

Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.

you talk the words out of my mouth.

1 Vote

Quote from @Sean Barber:

Quote from @Jim Peret:

I'm in the Sunbelt Diversified Fund. They just suspended distributions. After 1.5 years I received 4 months of distributions at around 1% annually. I think Brandon is a better sales person then he is at running syndications especially if they aren't doing well. But he will still be a very rich man.

Jim, what do you think about the most recent update for sunbelt? Seems like they’re prepping us for a capital call. Not sure how you can be 94% below projections without some gross lack of due diligence prior to purchasing these assets.

It's bad. I hope not. It's like he missed everything when doing due diligence.

1 Vote

With all the things going wrong on Sunbelt Fund. He couldn't have done any real due diligence. Hoping he can get us out of his mess. Two weeks before we were notified about cutting off distributions he gave us a pitch to donate to his Hawaii relief fund. Tell me he didn't know this was coming two weeks before he notified us.

2 Votes

Not looking good for my ODC Sunbelt Diversified Fund. Here's part of my November report. It's not even the worse of it. So 2024 will be a rough year.

As mentioned on previous updates, after careful consideration around where we are in the market and the significant run up in costs around our debt service, insurance, and taxes, we have decided to pause all distributions. However, we will continue to monitor the performance on a month to month basis, along with the overall market conditions, to inform future distribution decisions.

3 Votes

Dallas, Texas

Quote from @Pretty Khare:

Quote from @Account Closed:

Anyone else getting notified this morning of paused Ashcroft distributions due to refinancing issues?

We have been working on refinancing the asset in order to access the equity and create liquidity to earnestly restart the renovations. The new lender we initially signed up with for the refinance notified us that they would not be able to provide the new loan at the agreed upon terms due to current market volatility.

We continue to pursue alternative refinancing options and anticipate having a new loan closed within the next six months. To remain conservative with liquidity and continue increasing NOI through unit renovations, we are pausing distributions beginning this month. Your preferred return will continue to accrue and will be paid at the next capital event, or when cash flow allows.

While distributions are on pause, we are not collecting its asset management fee and Birchstone Residential is collecting a reduced property management fee.

I know of a couple of syndicators that have had capital calls. They were up front about it, they and no one else likes it, but with the jump in rates, it is not surprising.

@Account Closed @Jim Peret Have the distributions been resumed by Ashcroft and ODC or not yet? thanks

0 Votes

Dallas, Texas

All Forum Posts by: Jim Peret

Jim Peret has started 10 posts and replied 97 times.

Post: 2 Capital calls in 2 weeks! Ouch

Post: 2 Capital calls in 2 weeks! Ouch

Post: 2 Capital calls in 2 weeks! Ouch

Post: Brandon Turner ODC fund

Post: Looking for Investor Friendly Realtor in Milwaukee WI

Post: Brandon Turner ODC fund

Post: Brandon Turner ODC fund

Post: Brandon Turner ODC fund

Post: Ashcroft capital - Paused Distributions

Post: Ashcroft capital - Paused Distributions