How in the world is anyone being optimistic about this situation? I'm guessing because most newbies have never gone through a situation where they invest in unsecured notes (if we can even call these notes) and they stop receiving payments. This has disaster written all over it. This is just the start of a larger decline in a company raising money from investors without proper SEC fillings that is starting to not pay investors back. It's crazy to me that people don't even know where their funds were invested. This is a real estate company that doesn't even hold these funds in real estate? How does that make sense? They invested in declining businesses with unrealistic returns. Radio Shack? Come on! Shouldn't they be recommending people invest in real estate?
If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan? If you now have equity in the business, shouldn't you be entitled to see that? I would be pressing the owner for that! Shouldn't you be entitled to actual reports for the business seeing transparent financials along with understanding exactly what your equity position is? Doesn't sound like any of this has been provided. Seems like the "equity" you get is just a cop-out excuse to not pay you. Who's to say this company doesn't just file bankruptcy or the founder disappears with everyone's capital. I've seen that before time and time again. My two cents, anyone that invested in this needs to kiss their money goodbye. In an unsecured investment, you literally have no recourse to get your money back. I would be hiring an attorney to be first in line for any distributions that do come as it's literally first come first serve for people that file suits and obtain judgement first. If you don't do that in time or are way down on the list, the likelihood of receiving any capital back is slim to none...
Here are the key takeaways here that appear to be the most concerning. I have been on their email list for years now and seen these offering, so I am familiar with them, but I did not invest once I learned what the money was actually invested in, which seemed ridiculous!
-Proper SEC guidelines/filings were not followed to raise capital from a large group of unaccredited investors. This is a big legal issue that may weigh in favor of the investor. Probably some predatory or fraudulent activity here that should be investigated.
-Most importantly, this are unsecured investments. Note to new investors, stick to actual RE investing, and never lend money to someone that is not secured.
-These investments were not even invested in real estate by a real estate company, things like failing companies, crypto, etc. Did people not know what they were actually investing in? Dress Barn & Radio Shack...what??
-No concrete business plan, financials or actual equity shares are being disclosed to investors, which need to be. "Equity" seems pretty worthless in a private company that can't make payments.
-This is the strangest investment opportunity I have seen offered. In true syndications, a sponsor shares all financials and will do a capital call if market conditions dictate more capital is needed.
-Basically it appears they have run out of money to pay investors back. Nothing has changed or will change soon economically, so I have no idea how they are going to pay anyone back. Get a judgement as quickly as you can. This may turn into a class action suit, but I think it's better to even be first to the punch before that.
My recommendation is that you be first in line to hire an attorney to attempt to get part of your funds back. Otherwise you are left sitting on the sidelines waiting and hoping, which I have never seen do good for anyone.
Strange how I keep getting their emails to still invest in these funds. How are they still advertising this? Additionally, last week I received this email from them as well...seems like a rob Peter to pay Paul scenario...none of which sounds good...
| Secured Note | 17% Interest | 12 Month Term |
|
|
My partners and I are raising $5 million of short-term expansion capital for the Money Is Mastermind, our exciting and profitable growing business.
We have roughly 1,900 paying members with a current valuation of $43 million. We are cash flow positive and project a profit of over $6 million this year.
We are only looking for a small number of investors. Here are the terms:
- 12-month term
- 17% Interest (Annual)
- Quarterly interest payments
- Secured by equity (not real estate-based)
- $250k minimum investment
- First-come basis
Feel free to book a short 10-15-minute call if you're interested in learning more.
Marco Santarelli
Partner, Money Is Mastermind |
|
|
Here is their marketing email about the original fund I am still receiving:
In today’s volatile market, I want to discuss inflation and some ways you can beat inflation to help you grow your wealth and boost your passive income with a focus on our investment fund, Norada Capital Management.
I'm hosting a live webinar this Thursday, April 11th at 11 am PST (2 pm EST).
In this live webinar we will discuss:
- How does Norada Capital mitigate risk in this environment?
- How can Norada Capital pay a fixed 15% yield to investors?
- How long has Norada Capital been offering notes?
- What businesses does Norada Capital invest in?
- How does the fund work?
I will send out the live webinar link one hour before the live event so keep an eye out on your inbox!
