All Forum Posts by: Melanie P.

 The difference is if you buy a stock and aren't happy with its performance you can sell it at any time for its present value and move on to something else. Not so with syndications, that money is locked in someone else's pocket unless they figure their way out of their mess.

I have no problem with sophisticated accredited investors buying into syndications. I have a real issue with syndicators who market these products to retail investors with the "earn money without work and your life will become one never ending vacation" pitch. That is predatory. It's also illegal. 

Finally saw some good fireworks this month. Looking forward to seeing more of the guys who cheated working folks while living large on their savings get caught in the crosshairs. More handcuffs coming soon.

Quote from @Brent Mendenhall:

Quote from @Joseph M.:

Well.. For all you following this craziness.. things are getting interesting for Dutch Mendenhall.

On 7/8/25, Fl Attorney General issued a 10-day subpoena to RADD Documents and financials.

https://www.myfloridalegal.com/newsrelease/attorney-general-....

On 7/18/25, RAD didn't submit the documents and instead filed suit on the FL AG for "unduly burden"  and "AG being out of jurisdiction" -see attached!

Dutch still hosts weekly update calls with big investors like Eric Snell and Jeff Thomas (818-384-5071). They are still attempting Ch 11 bankruptcy, forming a BOD, maybe hiring a new CEO. BOD will consist of Dutch Mendenhall, Taylor Green, Eric Snell, Jeff Thomas, Ted Reppick, Lori Ferguson, James Benjamin. Seems very strange these people wish to continue with RAD and Dutch despite an active investigation. They say they will have liability insurance, but I'm not sure that covers fraud and ponzi. Apparently, Amy Vaughn IS NOT on the board- hopefully her ego isn't hurt. 

@Brent Mendenhall

Brent- respectfully, has your brother always shown narcissistic behaviors? Has he always been defiant of the law growing up?

 @Joseph M. best thing for you is to not mention me inquiring about my brother (s).  Also, you sharing this is just old news.  Reference tge BoD, ever thought they may be trying to restructure and hopefully save anything possible for investors despite what has happened in the past?

 Brent, Deciding to leave when the money was running out does not absolve you from the actions you took part in, aided and abetted. As I hope you and your brothers will all soon learn. Big problems that can't be prospectussed away are what went down daily in your boiler room, accounting office and board room.

If you guys gave one **** about the people you conned various members of the executive suite would sell the property they bought with multi million dollar low interest promissory notes and start making people whole. Nobody has come here and said you're doing anything but bucking the system and circling the drain. Your parents must have really been something to churn out such a pack of losers.

@Clinton Davis Please note in Tennessee late fees are capped at 10% of the past due rental amount and may not be imposed until after a five day grace period. If the last day of the grace period falls on a Sunday or legal holiday the fee cannot be imposed until the next day.

I'd suggest assessing 5% on Day 6 and then an additional $20 a day until you hit the cap. 

 Most states with security deposit caps have passed legislation capping the guaranty at the same 1 of 2 months rent. There are insurance products offered now that cover tenant damage $6.50/door/month and I saw a service today, Nomad, which claims to pay up to 3 months of rent and up to $5k in eviction costs. They charge 4% of gross, minimum $75 per unit per month for that, screening reports and some other property management tools. 

 I appreciate your perspective, but you can get AirBNB to remove the unpermitted listing by contacting their Trust & Safety Team. Landlords are not sympathetic figures. Most people have encountered a landlord they did not like at some point in their lives. Getting media is always bad unless you want to become the target of some liberal enforcement action. Juries also do not like us, avoid them like the plague. 

Hello. Happy to help, just post the questions into any ONE forum and you'll get a number of perspectives and advice.

Checklists. It's the only way to keep minor details from escaping whoever is on site. Checklist with every detail for the cleaners.
Checklist for pre-check in. Checklist for afternoon of checkout. 

We use a maintenance software that the cleaner can check off the items, report damage, attach photos and it makes a report. If we later get a guest report we can change a setting for what was missed, in spite of the checklist, to only accept their checkmark with a photo from that day showing it was completed. We turn it on for 5 or 6 turnovers then remove the photo requirement when they reach regular compliance.

@Mike Klarman 

Precisely! A wholesaler will comp a Compton duplex to a home in Beverly Hills by saying, "Recent three bedrooms in the 310 area code have an ARV of $1.25M"

On top of that everyone has their own way of calculating comps so you should always do it your way that works within your model so you know how your model is likely to execute on the proposed property.

Do you happen to remember the names of the attorneys or have anything from them?

I would be pleased to demand they counsel their clients to discontinue their unlawful fundraising or report the ongoing illegal conduct to the SEC and Florida Department of Finance. Fla. Statutes Title VII Sec. 90.502 (4) There is no lawyer-client privilege under this section when:(a) The services of the lawyer were sought or obtained to enable or aid anyone to commit or plan to commit what the client knew was a crime or fraud.

Florida Rules of Professional Conduct
RULE 4-1.6 CONFIDENTIALITY OF INFORMATION

b) When Lawyer Must Reveal Information. A lawyer must
reveal confidential information to the extent the lawyer reasonably
believes necessary to:
(1) prevent a client from committing a crime;

Where practical the lawyer should seek to persuade the client to take suitable action.

When I wrote, "in a courtroom," I'm picturing an allocution hearing or sentencing hearing (through tears naturally). There is no defense to the conduct of RAD and the Mendenhal Crime Family.

@Joseph M. @Chris Seveney

How will the operator pay the debt on the real estate if they only have de minimus management fee income coming in?

You work for this company? Please tell me more. Especially the part about this company already being partnered up with a VC who has presumably already invested in the company and, by  extension, this project AND thinking the best course of action is to do this lease deal. The professionals believe they are on the right side of the transaction and want you to find someone to take the lease side.

And this is all ribald speculation, right? None of these apartments has any history of being a STR where you can see actual financials? It's all just assumptions based on anecdotal information of what you think other units are doing in the market which may or may not be accurate. My experience says if you have a million dollars gross rents, you'll average out to around $400-500k per year net on STRs BEFORE servicing any debt or paying toward this lease agreement.

This sounds like a big risk for a crap return. $300k per year (which I do not find likely at all, keep in mind you're relying on the financial projections of the same people who bought the building without plans or finances in place to get it open and operating -- put another way you're working from the revised version of the offeror's failed projections) you get back $1.2M on your $1M. What's attractive about that? If you buy a zero risk 10 year treasury bond today with $1M, you will collect $217k in interest over five years - no risk, no funny operators, deal structures, etc. The worst part of this deal is you take all the risk and do all the work but do not get to participate in the appreciation of the underlying real estate. Appreciation can be half or more of your total return and when you screw up and don't make money it can be a life preserver that gets you out with a small profit or at least most of your skin intact. 

Good luck.