Passco 1031 "The Shelby" DST - BEWARE!

[Ronald Verdugo]

As investors in Passco's "The Shelby" DST we are VERY unhappy with the return on the investment and the excuses for this performance. From a fire at a nearby property and resulting damaage to The Shelby", to delays in fire damage repairs due to Covid 19 restrictions, to renters not paying rent due to Covid 19, to an approx. 20% vacancy rate, to insufficient reserve funds, to an obvious lack business loss insurance - Passco continues to underperformance on every statement they made at their seminar - from the safety of the investment based on their previous track record, to the expected annual distrubution amounts paid out. The return on this investment has gone from approx. <5% annually, to now 2% for the foreseeable future. Passco has admitted that the property has under performed since it was aquired and have even stated that it has underperformed industry standards in their lastest news email. The fact that Passco have pumped over $1.5m of their own funds into since that date and is ci=onsidering "its options" is even more disturbing, as this appears to be be an investment ready to into bankrupty soon. We feel that the statements made by Passco were false at best and our trust in them has gone from being enthusiastic investors, to one that wishes the property would be sold and our investmet funds returned before this property goes into bankruptcy. Does anyone else feel the same or have you had a similar experience?