There is a loss of a promised income stream with zero communications with investors, there is a pattern of non payment across at least seven DST's, there is a 53 million dollar lawsuit against the sponsor for fraud, and I am just scratching the surface!

Eventually, 358 of the homes fell into foreclosure.The following 11 defendants were indicted on mortgage fraud-related offenses including engaging in a pattern of corrupt activity, a first degree felony: Uri Gofman, Tony Viola, Igor Gofman, Kevin Landrum, Dave Pirichy, Dale Adams, Steve Greenwald, George Gardner and James Leoni along with Real Asset Fund, owned by Uri Gofman, and Karka Inc., also owned by Uri Gofman.

I would suggest you first focus on location, underwrite/review/run the numbers on 25-50 properties and you'll start to see patterns of the type of homes that work and don't work.

I’ll also have my PM pull active tradelines to check how many have at least 12 or 24 months of history—hoping to see some pattern before the bankruptcy.4.

If you have dirt floors, it will likely be cheaper than if you put in marble tile inlaid with diamonds that you had to import from Italy. 

This is definitely a scam then with the same pattern in every project.

However, Schiff also claimed a condo in Burbank, California, as his primary residence, even receiving a $7,000 California homeowner's tax exemption.FHFA investigators and Fannie Mae’s financial crimes unit concluded Schiff showed "a sustained pattern of possible occupancy misrepresentation" across five loans.

But if you’re still pulling rent comps manually, copying numbers into spreadsheets, and trying to underwrite dozens of deals a week you are wasting time.Here’s where AI and simple systems can help:Surface listings with below-market rents or pricing gapsAutomate comp pulls and underwriting templatesFlag risk factors and patterns that are easy to miss manuallyStay consistent across marketsSharpen your market researchThe goal isn’t to replace your judgment.

You would not upgrade to marble in the kitchen if the rents did not justify it and the increased rents provided a reasonable return.At the end of the day, I would suggest you look at what you would be out of pocket after all rebates / incentives and what the benefit (cost savings) are.

It’s about financial literacy, proactive planning, and knowing the signs when something’s off.For those of you working with distressed properties or considering off-market acquisitions, have you noticed a similar pattern in your markets?