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Updated 8 days ago, 12/03/2024
RAD Diversified SCAM ALERT!!!
Hello,
I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.
I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.
I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.
"On April 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company’s redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after April 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the redemption program or to continue to pause the redemption program no later than July 1, 2024."
#4 All Forums Contributor
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#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Quote from @Account Closed:
@Brent Mendenhall u was the clown who walked around the office with a dog and got paid to delete gooogle reviews cus u work for ya brother. Don’t tell me I didn’t work there cuck
Alleyne while no one knows if your description of the company is true or not.. your use of the English language and your writing skills do not portray a high level employee, more like a janitor or something. My Section 8 tenants kind of talk and write like this, brings one pause as to the veracity of your claims.
- Jay Hinrichs
- Podcast Guest on Show #222
Quote from @Jay Hinrichs:
Quote from @Account Closed:
your use of the English language and your writing skills do not portray a high level employee, more like a janitor or something.
#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
- 61,878
- Votes |
- 42,060
- Posts
#4 All Forums Contributor
- Lender
- Lake Oswego OR Summerlin, NV
Quote from @Kristi K.:
Quote from @Jay Hinrichs:
Quote from @Account Closed:
your use of the English language and your writing skills do not portray a high level employee, more like a janitor or something.
YUP sorry Janitors meant no offense.. and I want to reiterate I don't know this RAD company never heard of them prior to this thread don't know exactly what they do other than what I have read here as in investors cant get redemption's right now and there is some Prom notes that appear based on postings on this thread to be in default.
I can though pick out a disgruntled low level Employee though or a Shill/Troll.
- Jay Hinrichs
- Podcast Guest on Show #222
Quote from @Jay Hinrichs:
Quote from @Account Closed:
@Brent Mendenhall u was the clown who walked around the office with a dog and got paid to delete gooogle reviews cus u work for ya brother. Don’t tell me I didn’t work there cuck
Alleyne while no one knows if your description of the company is true or not.. your use of the English language and your writing skills do not portray a high level employee, more like a janitor or something. My Section 8 tenants kind of talk and write like this, brings one pause as to the veracity of your claims.
@Jay Hinrichs I won't reply to his/her posts, may possibly be an ex-employee utilizing a different name. I will provide some additional info for those that may be interested in some additional information on myself etc.
1. I do in fact come to our Florida office occasionally with my "dog" as a previous poster points out. K9 Bragg is my Belgian Malinois service dog awarded by Special Operations Wounded Warrior. :-) SOWW is a great organization that provides direct support to our wounded or injured Special Operations throughout all four DoD branches' Special Operation Forces (SOF). Please keep all our fallen in your thoughts tomorrow on Memorial Day. If anyone on this forum wants to know more about either Special Operations Wounded Warrior (SOWW) or Task Force Dagger Foundation (TFD) please reach out directly to learn about the amazing work they are doing for our veteran community within Special Operations Forces.
2. I have nothing to do with Google Reviews, I believe oversight on this comes from our Social Media engagement team. I have just recently started to hopefully answer questions on Bigger Pockets etc.
3. @Sebastian Bennett you questioned my job title in the forum and question nepotism (more than once). I provided information where you could have reached out to me directly. I work directly for the CEO on all special projects, planning, farming and ranching oversight and planning, acquisition of farms and ranches (assessments, analysis etc.) and any action that requires project management oversight with limited intent/guidance etc. (something that most senior SOF personnel are used to). As far as nepotism, yes, I'm the older brother of the CEO. I transitioned out of the US Government in 2022 after retiring from uniform and then another nearly 12 years as a Senior Government civilian at Fort Bragg (now Liberty) North Carolina. I wanted to join my brother's journey for the last few years of my "working" life. I spent years away from my brothers due to military service. I was far from "needing a job" and have far more opportunities to remain working within the government or government contracting world. I'm contacted weekly from reference senior positions and contract work with the government, but I definitely enjoy the time with my brothers for the last few years before I hopefully retire for good.
Thank you @Jay Hinrichs
Any updated on Rad Diversified? The boards have been quiet lately. I assume distributions must have started back up?
From SEC site - https://www.sec.gov/Archives/edgar/data/1721469/000110465924...
"On June 27, 2024, the board of directors (the “Board”) of RAD Diversified REIT, Inc. (the “Company”) met to consider its Share Redemption Program. Although the Board is beginning to see improved liquidity throughout the Company based on actions it has been and will continue taking, the Board perceives that the real estate market remains relatively stagnant. The Board therefore believes it prudent to proceed cautiously at this time. As a result, the Board decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company’s redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024, nor will it accept any new redemption requests. Pending redemption requests will remain in queue until the Company recommences the redemption program.
The Board intends to reassess this decision to determine whether to recommence the redemption program no later than January 1, 2025."
Quote from @Account Closed:
From SEC site - https://www.sec.gov/Archives/edgar/data/1721469/000110465924...
"On June 27, 2024, the board of directors (the “Board”) of RAD Diversified REIT, Inc. (the “Company”) met to consider its Share Redemption Program. Although the Board is beginning to see improved liquidity throughout the Company based on actions it has been and will continue taking, the Board perceives that the real estate market remains relatively stagnant. The Board therefore believes it prudent to proceed cautiously at this time. As a result, the Board decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company’s redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024, nor will it accept any new redemption requests. Pending redemption requests will remain in queue until the Company recommences the redemption program.
The Board intends to reassess this decision to determine whether to recommence the redemption program no later than January 1, 2025."
While this is probably not what an investor wanted to here, they were upfront to let you know "hey this year do not expect anything" - I would rather know this than have every 2-3 months wait to figure out next steps like the government was doing during the foreclosure moratorium and screwing over all the law firms who would not know until the day before whether they would have a case load and the need for staff.
- Chris Seveney
raad has held onto my funds for over two years,I closed the account after requesting part of my money back , to help pay for a medical procedure.
i was told to apply in December for a return in July.Now they simply refuse my request,their talk about customer service is all a crock.
'the board voted to cancel all distributions"
i simply want the funds they are holding.Its about 18000.I bet they all get paid.
where is the honesty?
Quote from @Alan David:
raad has held onto my funds for over two years,I closed the account after requesting part of my money back , to help pay for a medical procedure.
i was told to apply in December for a return in July.Now they simply refuse my request,their talk about customer service is all a crock.
'the board voted to cancel all distributions"
i simply want the funds they are holding.Its about 18000.I bet they all get paid.
where is the honesty?
I understand your frustration with the current freeze on redemptions/distributions. We provided you accurate information on the current 1U Amendment to the SEC on our Redemption and Distribution Program. You have been provided the information and actual link to the 1U Amendment, but you still mischaracterize it within your post to this thread in your comment “the board voted to cancel all distributions”. Although I can understand you may just be using your own verbiage of the current freeze, but we have provided you the exact 1U Amendment and it is actually posted openly in this thread. We also provided you the actual link to the SEC submission.
We have held monthly (if not more) RADD REIT Update calls where our CEO has explained the timing and reasoning of the freeze, has answered questions and concerns, and the actions moving forward. We understand some investors may not open or read the email invitations for these calls, so we have addressed a more effective process to ensure no investor is left without know about the monthly update calls.
Additionally, I am aware that our Investor Relations Representative immediately reached out to you after your Better Business Bureau submission to ensure you understood and if you had any questions. Today you emailed Investor Relations asking us to make an exception in exchange for you to remove your reviews.
Please direct any additional questions you may have to Investor Relations. If you have an approved request to withdrawal your investment, it remains approved and will be implemented appropriately when the Board of Directors lifts the freeze.
Thank you very much.
I understand your frustration with the current freeze on redemptions/distributions. We provided you accurate information on the current 1U Amendment to the SEC on our Redemption and Distribution Program. You have been provided the information and actual link to the 1U Amendment, but you still mischaracterize it within your post to this thread in your comment “the board voted to cancel all distributions”. Although I can understand you may just be using your own verbiage of the current freeze, but we have provided you the exact 1U Amendment and it is actually posted openly in this thread. We also provided you the actual link to the SEC submission.
We have held monthly (if not more) RADD REIT Update calls where our CEO has explained the timing and reasoning of the freeze, has answered questions and concerns, and the actions moving forward. We understand some investors may not open or read the email invitations for these calls, so we have addressed a more effective process to ensure no investor is left without know about the monthly update calls.
Additionally, I am aware that our Investor Relations Representative immediately reached out to you after your Better Business Bureau submission to ensure you understood and if you had any questions. Today you emailed Investor Relations asking us to make an exception in exchange for you to remove your reviews.
Please direct any additional questions you may have to Investor Relations. If you have an approved request to withdrawal your investment, it remains approved and will be implemented appropriately when the Board of Directors lifts the freeze.
Thank you very much
You keep towing that company line @Brent Mendenhall. Know this, I will get my money back. It's only a matter of time before that debt comes due and I promise you, I will collect.
Quote from @Arthur Crum:
I understand your frustration with the current freeze on redemptions/distributions. We provided you accurate information on the current 1U Amendment to the SEC on our Redemption and Distribution Program. You have been provided the information and actual link to the 1U Amendment, but you still mischaracterize it within your post to this thread in your comment “the board voted to cancel all distributions”. Although I can understand you may just be using your own verbiage of the current freeze, but we have provided you the exact 1U Amendment and it is actually posted openly in this thread. We also provided you the actual link to the SEC submission.
We have held monthly (if not more) RADD REIT Update calls where our CEO has explained the timing and reasoning of the freeze, has answered questions and concerns, and the actions moving forward. We understand some investors may not open or read the email invitations for these calls, so we have addressed a more effective process to ensure no investor is left without know about the monthly update calls.
Additionally, I am aware that our Investor Relations Representative immediately reached out to you after your Better Business Bureau submission to ensure you understood and if you had any questions. Today you emailed Investor Relations asking us to make an exception in exchange for you to remove your reviews.
Please direct any additional questions you may have to Investor Relations. If you have an approved request to withdrawal your investment, it remains approved and will be implemented appropriately when the Board of Directors lifts the freeze.
Thank you very much
You keep towing that company line @Brent Mendenhall. Know this, I will get my money back. It's only a matter of time before that debt comes due and I promise you, I will collect.
@Arthur Crum Thank you Arthur, I am very confident if you have an approved request to receive a redemption/distribution withdrawal that you will receive such.
nonetheless Dtch always talks about customer service and community, yet when i neede the funds for surgery,i was denied.HereI am two years in and no money released,can my small amount hold bsck the company?I am no big investor just a retired teacher with ordinary means,The attitude here is not helpful.
i bet there are many like me who are suffering from the policies.your company touts the fairness and "family" values.
And I was promised my funds in July if I applied 6 months prior which I did. just one excuse after another,playing shell games,while I spin in the wind.I
i participated in the online meetings,asked questions was ignored.Also-I don't earn anything on he money they hold. so I'm screwed both ways, does this seem at all reasonable?
@Brent Mendenhall @Dutch Mendenhall
I am an inner circle member with RAD and I just wanted to add what my experience has been like.
First off, I am not hear to speak ill of RAD or to sing their praises, I am simply explaining what my experience has been from my own perspective. I have tagged Brent and Dutch on this post so they can see it and reply if they so choose.
I joined the inner circle in October of 2022. The cost to do so was 50k to join. For me, that was a huge amount of money, but the idea of their service was appealing to me. The sales pitch was that inner circle members get access to exclusive deals like hard money loans, 1% ownership opportunities in various investments / funds, and joint ventures as well as regular educational trainings. As a teacher, I was excited about the educational trainings because I thought it could help me expand my understanding of real estate investing. Sadly, several of the trainings have been cancelled through my tenure with them. I also was very excited about the joint ventures. Essentially, a joint venture is where an inner circle member and RAD go 50/50 on the purchase of a property, but RAD does all of the market research to find properties, does all the rehab and management, etc. As someone who previously owned some rental properties and did not want the headaches associated with that, I found a great deal of potential value in having an entire team do all the research / rehab / management that could fill in the blanks for me in terms of real estate investing. Additionally, they made the argument that, as a large company, if something went sideways with an investment, they would cover the losses. That seemed awesome to me, and I saw some marketing videos / heard on some calls people who actually did have that happen to them with RAD, and RAD offered to buy them out at a profit, so I thought that was really cool.
Prior to joining, I did do a great deal of research. I reached out to some (I believe 3) investors in RAD to get feedback on their experience. They all had very positive things to say. Back in 2022, had you viewed RAD's Google Reviews or BBB Reviews, they were largely (90+%) very positive. Having an SEC registered REIT, along with several positive reviews and endorsements from actual investors, instilled a great deal of confidence in me.
Additionally, their marketing was very compelling. Their videos consistently said that none of their investors had ever lost money. They also said that, as an inner circle member, if you had a joint venture with them and you wanted out, they would buy you out at a 20% profit. In other words, their willingness to be flexible and work with people along with their, at the time, great reputation and very convincing marketing, persuaded me to take the plunge.
My first actual investment with them was a hard money loan. Inner circle members could lend RAD money to earn a return on it. I signed the contract to lend to them on 10/31/2022. It was 50K loan for 6 months at 20% interest. Anything that was not paid back after the first 6 months accumulated 1% per month ($500) to the balance owed. At the time, they said they were paying back loans in 6-8 months at the most, so I felt like that was reasonable. Shortly after loaning them this money, I would say within 3-4 months, I started hearing stories on calls about people either not being paid, or it taking RAD a long time to pay. That being said, there were also people on the calls who had been investing with the company for a long time (5+ years) that had essentially nothing but good things to say about them. So, even though I was freaking out a little, I mean I was 100k in at this point (50k fee to join and 50k loan) I did my best to keep calm despite feeling pretty nervous. Further, unbeknownst to me, this was an unsecured loan. Prior to investing, I asked my coordinator if the loan was secured and she said yes, it was secured by their property portfolio. As it turns out, that information was not accurate. Someone asked if hard money loans were secured by property, and the answer was no, so that did not instill a great deal of confidence. That being said, I would reiterate that several people made the claim that they had done the hard money loan and gotten paid back.
So 6 months come and go and I do not get paid anything. I will say that they never ignored my concerns. When I asked for a meeting with Dutch to discuss my investment strategy, he did meet with me and was pleasant. Anytime I called or emailed, I did get a reply. It was often not a very satisfying answer, but at the very least, they did not dodge me. Also, they were very respectful. I never felt like they treated me poorly, so I appreciated that, but I also felt like I was never getting a full and complete answer. This could be due to the fact that the member coordinators (each inner circle member is assigned a dedicated customer service person) may not have had the information themselves. My only complaints with their customer service are 1. I never felt like I was getting all of the information when I asked probing questions 2. They did miss a few scheduled calls with me 3. Overpromising and under-delivering in terms of expectations at times.
I really needed some money from this hard money loan for some unexpected expenses that I had, so I had to go back and forth with them several times, but I did eventually get a payment. The first partial payment that they made to me was in June of 2023. The last partial payment they made to me was in December of 2023. As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month. I specifically and repeatedly told my coordinator that they are accruing $500/month debt on a small balance and it would be in their best interest to just pay me and my coordinator has confirmed that leadership is aware of the situation, but they have chosen not to pay. I am happy to accrue the $500 / month interest so long as they come through and eventually pay, but they have paid in the past, so I am hopeful that they will do so in the future.
Given that they paid me back enough to be in profit and that there were still investors who were very happy with their relationship with RAD, I thought I would invest again, but I did not want to do a hard money loan. I wanted my investment to be secured by real assets, so I did a 1% deal and a joint venture deal. The 1% deal was for vacant land in Rancho Cucamonga, California. Essentially, I own 1% of a piece of land there that RAD plans on developing over the next few years. I also have a joint venture with them on a single family property in Philadelphia that is currently rented. I know you might be saying to yourself “Why would he invest again?!” and the answer is multi-faceted and a little complicated. In addition to the aforementioned reasons (I am in profit from the hard money loan and the positive testimonials from some long-term members), I had already invested 50k to join and there was no way to get that money back. I thought by investing in real assets that I would have a better chance of not losing on my investment. Also, and I sincerely mean this, I really want this relationship to be successful. I joined the program to build something together. I want RAD to be successful and, in turn, my family to be successful. Ideally, I would like to have 5, 10, maybe even 15 joint venture rental properties. I spoke with a lady who started off with very little like myself and built her portfolio up to 9 joint venture properties and had been pretty happy with the relationship. I still want that. I still hope for that.
I have no update on what is going on with the land, but when I bought in to that deal in January of 2024, I was told that the turnaround time on that deal would likely be 2-4 years, so that is still operating within my expectation.
Sadly, the joint venture property deal has not gone exactly according to plan. I bought into the deal in January of 2024 and I was told my portion of the profit from rent would be paid to me starting in March of 2024 (supposed to be about $300 / month). As of this writing (7-19-2024), I have received no rent payments, but my appfolio does show rent being paid every month. My coordinator (who is now a new person since my original coordinator left) has said that the rent payment has not gone out to me due to an accounting audit. I have been given multiple dates as to when they expect payments to start going out, first it was March 24, then May 24, then June 24, the latest is September 24. While I certainly understand the need for a company to do an audit, particularly for the REIT, I am not sure why that would slow down or prevent rent moneys being paid for rent on joint ventures. They have expressed some issues associated with turnover in the accounting department, but they have been saying that since early to mid 2023 maybe? That line, at least from my perspective, is getting a little long in the tooth.
Life and business are complicated. Multiple things can be true at the same time. At this point, I don’t really know what to think. I desperately hope that Rad pulls through this hard time and returns to the successes associated with the investors I spoke to prior to joining. Like I said, I want this to be successful, not only for me and the other investors who feel at risk of losing a great deal of money, but for them and the people that they employ as well. I have no desire to be part of any lawsuit or liquidation event. My desire remains the same as it did when I joined, to try and build something with a partner that I can trust to improve the lives of my loved ones. That being said, I could not, in good conscience, recommend RAD to anyone such that it is today. I am not calling them a scam, but based on my experience up to this point, they are not in a position right now to provide the customer experience necessary for the associated 50k fee to join. If that changes in the future, and I really hope it does, I will be the first to publicly alter my opinion and report it out to all of you.
I will close by saying, I have absolutely no inside information as to what is going on at RAD. I am not privy to their financial situation. Everything that you have read in this piece is simply my own experience with RAD inner circle up to this point.
Feel free to ask me any questions that you may have and I will do my best to respond to them.
Quote from @Ethan Blue:
@Brent Mendenhall @Dutch Mendenhall
I am an inner circle member with RAD and I just wanted to add what my experience has been like.
First off, I am not hear to speak ill of RAD or to sing their praises, I am simply explaining what my experience has been from my own perspective. I have tagged Brent and Dutch on this post so they can see it and reply if they so choose.
I joined the inner circle in October of 2022. The cost to do so was 50k to join. For me, that was a huge amount of money, but the idea of their service was appealing to me. The sales pitch was that inner circle members get access to exclusive deals like hard money loans, 1% ownership opportunities in various investments / funds, and joint ventures as well as regular educational trainings. As a teacher, I was excited about the educational trainings because I thought it could help me expand my understanding of real estate investing. Sadly, several of the trainings have been cancelled through my tenure with them. I also was very excited about the joint ventures. Essentially, a joint venture is where an inner circle member and RAD go 50/50 on the purchase of a property, but RAD does all of the market research to find properties, does all the rehab and management, etc. As someone who previously owned some rental properties and did not want the headaches associated with that, I found a great deal of potential value in having an entire team do all the research / rehab / management that could fill in the blanks for me in terms of real estate investing. Additionally, they made the argument that, as a large company, if something went sideways with an investment, they would cover the losses. That seemed awesome to me, and I saw some marketing videos / heard on some calls people who actually did have that happen to them with RAD, and RAD offered to buy them out at a profit, so I thought that was really cool.
Prior to joining, I did do a great deal of research. I reached out to some (I believe 3) investors in RAD to get feedback on their experience. They all had very positive things to say. Back in 2022, had you viewed RAD's Google Reviews or BBB Reviews, they were largely (90+%) very positive. Having an SEC registered REIT, along with several positive reviews and endorsements from actual investors, instilled a great deal of confidence in me.
Additionally, their marketing was very compelling. Their videos consistently said that none of their investors had ever lost money. They also said that, as an inner circle member, if you had a joint venture with them and you wanted out, they would buy you out at a 20% profit. In other words, their willingness to be flexible and work with people along with their, at the time, great reputation and very convincing marketing, persuaded me to take the plunge.
My first actual investment with them was a hard money loan. Inner circle members could lend RAD money to earn a return on it. I signed the contract to lend to them on 10/31/2022. It was 50K loan for 6 months at 20% interest. Anything that was not paid back after the first 6 months accumulated 1% per month ($500) to the balance owed. At the time, they said they were paying back loans in 6-8 months at the most, so I felt like that was reasonable. Shortly after loaning them this money, I would say within 3-4 months, I started hearing stories on calls about people either not being paid, or it taking RAD a long time to pay. That being said, there were also people on the calls who had been investing with the company for a long time (5+ years) that had essentially nothing but good things to say about them. So, even though I was freaking out a little, I mean I was 100k in at this point (50k fee to join and 50k loan) I did my best to keep calm despite feeling pretty nervous. Further, unbeknownst to me, this was an unsecured loan. Prior to investing, I asked my coordinator if the loan was secured and she said yes, it was secured by their property portfolio. As it turns out, that information was not accurate. Someone asked if hard money loans were secured by property, and the answer was no, so that did not instill a great deal of confidence. That being said, I would reiterate that several people made the claim that they had done the hard money loan and gotten paid back.
So 6 months come and go and I do not get paid anything. I will say that they never ignored my concerns. When I asked for a meeting with Dutch to discuss my investment strategy, he did meet with me and was pleasant. Anytime I called or emailed, I did get a reply. It was often not a very satisfying answer, but at the very least, they did not dodge me. Also, they were very respectful. I never felt like they treated me poorly, so I appreciated that, but I also felt like I was never getting a full and complete answer. This could be due to the fact that the member coordinators (each inner circle member is assigned a dedicated customer service person) may not have had the information themselves. My only complaints with their customer service are 1. I never felt like I was getting all of the information when I asked probing questions 2. They did miss a few scheduled calls with me 3. Overpromising and under-delivering in terms of expectations at times.
I really needed some money from this hard money loan for some unexpected expenses that I had, so I had to go back and forth with them several times, but I did eventually get a payment. The first partial payment that they made to me was in June of 2023. The last partial payment they made to me was in December of 2023. As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month. I specifically and repeatedly told my coordinator that they are accruing $500/month debt on a small balance and it would be in their best interest to just pay me and my coordinator has confirmed that leadership is aware of the situation, but they have chosen not to pay. I am happy to accrue the $500 / month interest so long as they come through and eventually pay, but they have paid in the past, so I am hopeful that they will do so in the future.
Given that they paid me back enough to be in profit and that there were still investors who were very happy with their relationship with RAD, I thought I would invest again, but I did not want to do a hard money loan. I wanted my investment to be secured by real assets, so I did a 1% deal and a joint venture deal. The 1% deal was for vacant land in Rancho Cucamonga, California. Essentially, I own 1% of a piece of land there that RAD plans on developing over the next few years. I also have a joint venture with them on a single family property in Philadelphia that is currently rented. I know you might be saying to yourself “Why would he invest again?!” and the answer is multi-faceted and a little complicated. In addition to the aforementioned reasons (I am in profit from the hard money loan and the positive testimonials from some long-term members), I had already invested 50k to join and there was no way to get that money back. I thought by investing in real assets that I would have a better chance of not losing on my investment. Also, and I sincerely mean this, I really want this relationship to be successful. I joined the program to build something together. I want RAD to be successful and, in turn, my family to be successful. Ideally, I would like to have 5, 10, maybe even 15 joint venture rental properties. I spoke with a lady who started off with very little like myself and built her portfolio up to 9 joint venture properties and had been pretty happy with the relationship. I still want that. I still hope for that.
I have no update on what is going on with the land, but when I bought in to that deal in January of 2024, I was told that the turnaround time on that deal would likely be 2-4 years, so that is still operating within my expectation.
Sadly, the joint venture property deal has not gone exactly according to plan. I bought into the deal in January of 2024 and I was told my portion of the profit from rent would be paid to me starting in March of 2024 (supposed to be about $300 / month). As of this writing (7-19-2024), I have received no rent payments, but my appfolio does show rent being paid every month. My coordinator (who is now a new person since my original coordinator left) has said that the rent payment has not gone out to me due to an accounting audit. I have been given multiple dates as to when they expect payments to start going out, first it was March 24, then May 24, then June 24, the latest is September 24. While I certainly understand the need for a company to do an audit, particularly for the REIT, I am not sure why that would slow down or prevent rent moneys being paid for rent on joint ventures. They have expressed some issues associated with turnover in the accounting department, but they have been saying that since early to mid 2023 maybe? That line, at least from my perspective, is getting a little long in the tooth.
Life and business are complicated. Multiple things can be true at the same time. At this point, I don’t really know what to think. I desperately hope that Rad pulls through this hard time and returns to the successes associated with the investors I spoke to prior to joining. Like I said, I want this to be successful, not only for me and the other investors who feel at risk of losing a great deal of money, but for them and the people that they employ as well. I have no desire to be part of any lawsuit or liquidation event. My desire remains the same as it did when I joined, to try and build something with a partner that I can trust to improve the lives of my loved ones. That being said, I could not, in good conscience, recommend RAD to anyone such that it is today. I am not calling them a scam, but based on my experience up to this point, they are not in a position right now to provide the customer experience necessary for the associated 50k fee to join. If that changes in the future, and I really hope it does, I will be the first to publicly alter my opinion and report it out to all of you.
I will close by saying, I have absolutely no inside information as to what is going on at RAD. I am not privy to their financial situation. Everything that you have read in this piece is simply my own experience with RAD inner circle up to this point.
Feel free to ask me any questions that you may have and I will do my best to respond to them.
Ethan, thank you for sharing your story and process with RADD to date. I am sure you have contact with your Inner Circle Coordinator or at least the Inner Circle Relations Director (Gretchen). If not, I can immediately ensure you have contact with them to discuss your Joint Venture rent money. As far as Racho land purchase, I have connected our VP of Real Estate with a close friend (through years in the military) who is a very successful developer and builder now. They are going to start discussing the “way ahead” on the Rancho land purchase and development. I feel the information provided to you “2-4 years” is still accurate, but I do not have the full details. I can and will gladly set up a time to speak with our VP of Real Estate if you would like.
You are correct, we went through very tough times with our Accounting Department mid-2023. We lost basically our entire staff through life circumstances. I agree with you, we are back on track with a new CFO, who is doing great things, a new Controller, and new staff. We additionally had an outside agency working closely with us to get back on track. I feel we on an excellent glide path in our Accounting Department, but it has taken some time.
Again, thank you for sharing your story. You can reach out to me directly if you would like to coordinate some additional engagements.
Have a great weekend, Brent
Hi Brent,
Thanks for your response. I sent you a message through here. Please let me know if you received it. If anyone else has any questions about my experience, feel free to ask.
Quote from @Ethan Blue:
Hi Brent,
Thanks for your response. I sent you a message through here. Please let me know if you received it. If anyone else has any questions about my experience, feel free to ask.
@Ethan Blue Thank you Ethan, just replied to your email to share my contact info.
Vr Brent
Quote from @Ethan Blue:
@Brent Mendenhall @Dutch Mendenhall
I am an inner circle member with RAD and I just wanted to add what my experience has been like.
First off, I am not hear to speak ill of RAD or to sing their praises, I am simply explaining what my experience has been from my own perspective. I have tagged Brent and Dutch on this post so they can see it and reply if they so choose.
I joined the inner circle in October of 2022. The cost to do so was 50k to join. For me, that was a huge amount of money, but the idea of their service was appealing to me. The sales pitch was that inner circle members get access to exclusive deals like hard money loans, 1% ownership opportunities in various investments / funds, and joint ventures as well as regular educational trainings. As a teacher, I was excited about the educational trainings because I thought it could help me expand my understanding of real estate investing. Sadly, several of the trainings have been cancelled through my tenure with them. I also was very excited about the joint ventures. Essentially, a joint venture is where an inner circle member and RAD go 50/50 on the purchase of a property, but RAD does all of the market research to find properties, does all the rehab and management, etc. As someone who previously owned some rental properties and did not want the headaches associated with that, I found a great deal of potential value in having an entire team do all the research / rehab / management that could fill in the blanks for me in terms of real estate investing. Additionally, they made the argument that, as a large company, if something went sideways with an investment, they would cover the losses. That seemed awesome to me, and I saw some marketing videos / heard on some calls people who actually did have that happen to them with RAD, and RAD offered to buy them out at a profit, so I thought that was really cool.
Prior to joining, I did do a great deal of research. I reached out to some (I believe 3) investors in RAD to get feedback on their experience. They all had very positive things to say. Back in 2022, had you viewed RAD's Google Reviews or BBB Reviews, they were largely (90+%) very positive. Having an SEC registered REIT, along with several positive reviews and endorsements from actual investors, instilled a great deal of confidence in me.
Additionally, their marketing was very compelling. Their videos consistently said that none of their investors had ever lost money. They also said that, as an inner circle member, if you had a joint venture with them and you wanted out, they would buy you out at a 20% profit. In other words, their willingness to be flexible and work with people along with their, at the time, great reputation and very convincing marketing, persuaded me to take the plunge.
My first actual investment with them was a hard money loan. Inner circle members could lend RAD money to earn a return on it. I signed the contract to lend to them on 10/31/2022. It was 50K loan for 6 months at 20% interest. Anything that was not paid back after the first 6 months accumulated 1% per month ($500) to the balance owed. At the time, they said they were paying back loans in 6-8 months at the most, so I felt like that was reasonable. Shortly after loaning them this money, I would say within 3-4 months, I started hearing stories on calls about people either not being paid, or it taking RAD a long time to pay. That being said, there were also people on the calls who had been investing with the company for a long time (5+ years) that had essentially nothing but good things to say about them. So, even though I was freaking out a little, I mean I was 100k in at this point (50k fee to join and 50k loan) I did my best to keep calm despite feeling pretty nervous. Further, unbeknownst to me, this was an unsecured loan. Prior to investing, I asked my coordinator if the loan was secured and she said yes, it was secured by their property portfolio. As it turns out, that information was not accurate. Someone asked if hard money loans were secured by property, and the answer was no, so that did not instill a great deal of confidence. That being said, I would reiterate that several people made the claim that they had done the hard money loan and gotten paid back.
So 6 months come and go and I do not get paid anything. I will say that they never ignored my concerns. When I asked for a meeting with Dutch to discuss my investment strategy, he did meet with me and was pleasant. Anytime I called or emailed, I did get a reply. It was often not a very satisfying answer, but at the very least, they did not dodge me. Also, they were very respectful. I never felt like they treated me poorly, so I appreciated that, but I also felt like I was never getting a full and complete answer. This could be due to the fact that the member coordinators (each inner circle member is assigned a dedicated customer service person) may not have had the information themselves. My only complaints with their customer service are 1. I never felt like I was getting all of the information when I asked probing questions 2. They did miss a few scheduled calls with me 3. Overpromising and under-delivering in terms of expectations at times.
I really needed some money from this hard money loan for some unexpected expenses that I had, so I had to go back and forth with them several times, but I did eventually get a payment. The first partial payment that they made to me was in June of 2023. The last partial payment they made to me was in December of 2023. As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month. I specifically and repeatedly told my coordinator that they are accruing $500/month debt on a small balance and it would be in their best interest to just pay me and my coordinator has confirmed that leadership is aware of the situation, but they have chosen not to pay. I am happy to accrue the $500 / month interest so long as they come through and eventually pay, but they have paid in the past, so I am hopeful that they will do so in the future.
Given that they paid me back enough to be in profit and that there were still investors who were very happy with their relationship with RAD, I thought I would invest again, but I did not want to do a hard money loan. I wanted my investment to be secured by real assets, so I did a 1% deal and a joint venture deal. The 1% deal was for vacant land in Rancho Cucamonga, California. Essentially, I own 1% of a piece of land there that RAD plans on developing over the next few years. I also have a joint venture with them on a single family property in Philadelphia that is currently rented. I know you might be saying to yourself “Why would he invest again?!” and the answer is multi-faceted and a little complicated. In addition to the aforementioned reasons (I am in profit from the hard money loan and the positive testimonials from some long-term members), I had already invested 50k to join and there was no way to get that money back. I thought by investing in real assets that I would have a better chance of not losing on my investment. Also, and I sincerely mean this, I really want this relationship to be successful. I joined the program to build something together. I want RAD to be successful and, in turn, my family to be successful. Ideally, I would like to have 5, 10, maybe even 15 joint venture rental properties. I spoke with a lady who started off with very little like myself and built her portfolio up to 9 joint venture properties and had been pretty happy with the relationship. I still want that. I still hope for that.
I have no update on what is going on with the land, but when I bought in to that deal in January of 2024, I was told that the turnaround time on that deal would likely be 2-4 years, so that is still operating within my expectation.
Sadly, the joint venture property deal has not gone exactly according to plan. I bought into the deal in January of 2024 and I was told my portion of the profit from rent would be paid to me starting in March of 2024 (supposed to be about $300 / month). As of this writing (7-19-2024), I have received no rent payments, but my appfolio does show rent being paid every month. My coordinator (who is now a new person since my original coordinator left) has said that the rent payment has not gone out to me due to an accounting audit. I have been given multiple dates as to when they expect payments to start going out, first it was March 24, then May 24, then June 24, the latest is September 24. While I certainly understand the need for a company to do an audit, particularly for the REIT, I am not sure why that would slow down or prevent rent moneys being paid for rent on joint ventures. They have expressed some issues associated with turnover in the accounting department, but they have been saying that since early to mid 2023 maybe? That line, at least from my perspective, is getting a little long in the tooth.
Life and business are complicated. Multiple things can be true at the same time. At this point, I don’t really know what to think. I desperately hope that Rad pulls through this hard time and returns to the successes associated with the investors I spoke to prior to joining. Like I said, I want this to be successful, not only for me and the other investors who feel at risk of losing a great deal of money, but for them and the people that they employ as well. I have no desire to be part of any lawsuit or liquidation event. My desire remains the same as it did when I joined, to try and build something with a partner that I can trust to improve the lives of my loved ones. That being said, I could not, in good conscience, recommend RAD to anyone such that it is today. I am not calling them a scam, but based on my experience up to this point, they are not in a position right now to provide the customer experience necessary for the associated 50k fee to join. If that changes in the future, and I really hope it does, I will be the first to publicly alter my opinion and report it out to all of you.
I will close by saying, I have absolutely no inside information as to what is going on at RAD. I am not privy to their financial situation. Everything that you have read in this piece is simply my own experience with RAD inner circle up to this point.
Feel free to ask me any questions that you may have and I will do my best to respond to them.
$50,000..... Wow now I know understand why if I ran a training program I would spend my time there than on my investments. I got a master's in real estate and finance from one of the top colleges in the country for less than that.
- Chris Seveney
Quote from @Chris Seveney:
Quote from @Ethan Blue:
@Brent Mendenhall @Dutch Mendenhall
I am an inner circle member with RAD and I just wanted to add what my experience has been like.
First off, I am not hear to speak ill of RAD or to sing their praises, I am simply explaining what my experience has been from my own perspective. I have tagged Brent and Dutch on this post so they can see it and reply if they so choose.
I joined the inner circle in October of 2022. The cost to do so was 50k to join. For me, that was a huge amount of money, but the idea of their service was appealing to me. The sales pitch was that inner circle members get access to exclusive deals like hard money loans, 1% ownership opportunities in various investments / funds, and joint ventures as well as regular educational trainings. As a teacher, I was excited about the educational trainings because I thought it could help me expand my understanding of real estate investing. Sadly, several of the trainings have been cancelled through my tenure with them. I also was very excited about the joint ventures. Essentially, a joint venture is where an inner circle member and RAD go 50/50 on the purchase of a property, but RAD does all of the market research to find properties, does all the rehab and management, etc. As someone who previously owned some rental properties and did not want the headaches associated with that, I found a great deal of potential value in having an entire team do all the research / rehab / management that could fill in the blanks for me in terms of real estate investing. Additionally, they made the argument that, as a large company, if something went sideways with an investment, they would cover the losses. That seemed awesome to me, and I saw some marketing videos / heard on some calls people who actually did have that happen to them with RAD, and RAD offered to buy them out at a profit, so I thought that was really cool.
Prior to joining, I did do a great deal of research. I reached out to some (I believe 3) investors in RAD to get feedback on their experience. They all had very positive things to say. Back in 2022, had you viewed RAD's Google Reviews or BBB Reviews, they were largely (90+%) very positive. Having an SEC registered REIT, along with several positive reviews and endorsements from actual investors, instilled a great deal of confidence in me.
Additionally, their marketing was very compelling. Their videos consistently said that none of their investors had ever lost money. They also said that, as an inner circle member, if you had a joint venture with them and you wanted out, they would buy you out at a 20% profit. In other words, their willingness to be flexible and work with people along with their, at the time, great reputation and very convincing marketing, persuaded me to take the plunge.
My first actual investment with them was a hard money loan. Inner circle members could lend RAD money to earn a return on it. I signed the contract to lend to them on 10/31/2022. It was 50K loan for 6 months at 20% interest. Anything that was not paid back after the first 6 months accumulated 1% per month ($500) to the balance owed. At the time, they said they were paying back loans in 6-8 months at the most, so I felt like that was reasonable. Shortly after loaning them this money, I would say within 3-4 months, I started hearing stories on calls about people either not being paid, or it taking RAD a long time to pay. That being said, there were also people on the calls who had been investing with the company for a long time (5+ years) that had essentially nothing but good things to say about them. So, even though I was freaking out a little, I mean I was 100k in at this point (50k fee to join and 50k loan) I did my best to keep calm despite feeling pretty nervous. Further, unbeknownst to me, this was an unsecured loan. Prior to investing, I asked my coordinator if the loan was secured and she said yes, it was secured by their property portfolio. As it turns out, that information was not accurate. Someone asked if hard money loans were secured by property, and the answer was no, so that did not instill a great deal of confidence. That being said, I would reiterate that several people made the claim that they had done the hard money loan and gotten paid back.
So 6 months come and go and I do not get paid anything. I will say that they never ignored my concerns. When I asked for a meeting with Dutch to discuss my investment strategy, he did meet with me and was pleasant. Anytime I called or emailed, I did get a reply. It was often not a very satisfying answer, but at the very least, they did not dodge me. Also, they were very respectful. I never felt like they treated me poorly, so I appreciated that, but I also felt like I was never getting a full and complete answer. This could be due to the fact that the member coordinators (each inner circle member is assigned a dedicated customer service person) may not have had the information themselves. My only complaints with their customer service are 1. I never felt like I was getting all of the information when I asked probing questions 2. They did miss a few scheduled calls with me 3. Overpromising and under-delivering in terms of expectations at times.
I really needed some money from this hard money loan for some unexpected expenses that I had, so I had to go back and forth with them several times, but I did eventually get a payment. The first partial payment that they made to me was in June of 2023. The last partial payment they made to me was in December of 2023. As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month. I specifically and repeatedly told my coordinator that they are accruing $500/month debt on a small balance and it would be in their best interest to just pay me and my coordinator has confirmed that leadership is aware of the situation, but they have chosen not to pay. I am happy to accrue the $500 / month interest so long as they come through and eventually pay, but they have paid in the past, so I am hopeful that they will do so in the future.
Given that they paid me back enough to be in profit and that there were still investors who were very happy with their relationship with RAD, I thought I would invest again, but I did not want to do a hard money loan. I wanted my investment to be secured by real assets, so I did a 1% deal and a joint venture deal. The 1% deal was for vacant land in Rancho Cucamonga, California. Essentially, I own 1% of a piece of land there that RAD plans on developing over the next few years. I also have a joint venture with them on a single family property in Philadelphia that is currently rented. I know you might be saying to yourself “Why would he invest again?!” and the answer is multi-faceted and a little complicated. In addition to the aforementioned reasons (I am in profit from the hard money loan and the positive testimonials from some long-term members), I had already invested 50k to join and there was no way to get that money back. I thought by investing in real assets that I would have a better chance of not losing on my investment. Also, and I sincerely mean this, I really want this relationship to be successful. I joined the program to build something together. I want RAD to be successful and, in turn, my family to be successful. Ideally, I would like to have 5, 10, maybe even 15 joint venture rental properties. I spoke with a lady who started off with very little like myself and built her portfolio up to 9 joint venture properties and had been pretty happy with the relationship. I still want that. I still hope for that.
I have no update on what is going on with the land, but when I bought in to that deal in January of 2024, I was told that the turnaround time on that deal would likely be 2-4 years, so that is still operating within my expectation.
Sadly, the joint venture property deal has not gone exactly according to plan. I bought into the deal in January of 2024 and I was told my portion of the profit from rent would be paid to me starting in March of 2024 (supposed to be about $300 / month). As of this writing (7-19-2024), I have received no rent payments, but my appfolio does show rent being paid every month. My coordinator (who is now a new person since my original coordinator left) has said that the rent payment has not gone out to me due to an accounting audit. I have been given multiple dates as to when they expect payments to start going out, first it was March 24, then May 24, then June 24, the latest is September 24. While I certainly understand the need for a company to do an audit, particularly for the REIT, I am not sure why that would slow down or prevent rent moneys being paid for rent on joint ventures. They have expressed some issues associated with turnover in the accounting department, but they have been saying that since early to mid 2023 maybe? That line, at least from my perspective, is getting a little long in the tooth.
Life and business are complicated. Multiple things can be true at the same time. At this point, I don’t really know what to think. I desperately hope that Rad pulls through this hard time and returns to the successes associated with the investors I spoke to prior to joining. Like I said, I want this to be successful, not only for me and the other investors who feel at risk of losing a great deal of money, but for them and the people that they employ as well. I have no desire to be part of any lawsuit or liquidation event. My desire remains the same as it did when I joined, to try and build something with a partner that I can trust to improve the lives of my loved ones. That being said, I could not, in good conscience, recommend RAD to anyone such that it is today. I am not calling them a scam, but based on my experience up to this point, they are not in a position right now to provide the customer experience necessary for the associated 50k fee to join. If that changes in the future, and I really hope it does, I will be the first to publicly alter my opinion and report it out to all of you.
I will close by saying, I have absolutely no inside information as to what is going on at RAD. I am not privy to their financial situation. Everything that you have read in this piece is simply my own experience with RAD inner circle up to this point.
Feel free to ask me any questions that you may have and I will do my best to respond to them.
$50,000..... Wow now I know understand why if I ran a training program I would spend my time there than on my investments. I got a master's in real estate and finance from one of the top colleges in the country for less than that.
Quote from @Alan David:
@Alan David Alan, you have had many discussions with our Team and provided all the possible information available. Additionally, you can take the "s" off Mendenhall as I have absolutely no ownership of Company etc. I joined RADD only 2 years ago and I attempt to respond to forums such as Bigger Pockets in attempt to answer questions and communicate appropriately with the community. Thank you. Feel free to reach out to me directly at any time.
Quote from @Arthur Crum:
Hello,
I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.
I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.
I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.
"On April 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company’s redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after April 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the redemption program or to continue to pause the redemption program no later than July 1, 2024."
Thank you for letting us know!
Quote from @Chris Seveney:
Quote from @Ethan Blue:
@Brent Mendenhall @Dutch Mendenhall
I am an inner circle member with RAD and I just wanted to add what my experience has been like.
First off, I am not hear to speak ill of RAD or to sing their praises, I am simply explaining what my experience has been from my own perspective. I have tagged Brent and Dutch on this post so they can see it and reply if they so choose.
I joined the inner circle in October of 2022. The cost to do so was 50k to join. For me, that was a huge amount of money, but the idea of their service was appealing to me. The sales pitch was that inner circle members get access to exclusive deals like hard money loans, 1% ownership opportunities in various investments / funds, and joint ventures as well as regular educational trainings. As a teacher, I was excited about the educational trainings because I thought it could help me expand my understanding of real estate investing. Sadly, several of the trainings have been cancelled through my tenure with them. I also was very excited about the joint ventures. Essentially, a joint venture is where an inner circle member and RAD go 50/50 on the purchase of a property, but RAD does all of the market research to find properties, does all the rehab and management, etc. As someone who previously owned some rental properties and did not want the headaches associated with that, I found a great deal of potential value in having an entire team do all the research / rehab / management that could fill in the blanks for me in terms of real estate investing. Additionally, they made the argument that, as a large company, if something went sideways with an investment, they would cover the losses. That seemed awesome to me, and I saw some marketing videos / heard on some calls people who actually did have that happen to them with RAD, and RAD offered to buy them out at a profit, so I thought that was really cool.
Prior to joining, I did do a great deal of research. I reached out to some (I believe 3) investors in RAD to get feedback on their experience. They all had very positive things to say. Back in 2022, had you viewed RAD's Google Reviews or BBB Reviews, they were largely (90+%) very positive. Having an SEC registered REIT, along with several positive reviews and endorsements from actual investors, instilled a great deal of confidence in me.
Additionally, their marketing was very compelling. Their videos consistently said that none of their investors had ever lost money. They also said that, as an inner circle member, if you had a joint venture with them and you wanted out, they would buy you out at a 20% profit. In other words, their willingness to be flexible and work with people along with their, at the time, great reputation and very convincing marketing, persuaded me to take the plunge.
My first actual investment with them was a hard money loan. Inner circle members could lend RAD money to earn a return on it. I signed the contract to lend to them on 10/31/2022. It was 50K loan for 6 months at 20% interest. Anything that was not paid back after the first 6 months accumulated 1% per month ($500) to the balance owed. At the time, they said they were paying back loans in 6-8 months at the most, so I felt like that was reasonable. Shortly after loaning them this money, I would say within 3-4 months, I started hearing stories on calls about people either not being paid, or it taking RAD a long time to pay. That being said, there were also people on the calls who had been investing with the company for a long time (5+ years) that had essentially nothing but good things to say about them. So, even though I was freaking out a little, I mean I was 100k in at this point (50k fee to join and 50k loan) I did my best to keep calm despite feeling pretty nervous. Further, unbeknownst to me, this was an unsecured loan. Prior to investing, I asked my coordinator if the loan was secured and she said yes, it was secured by their property portfolio. As it turns out, that information was not accurate. Someone asked if hard money loans were secured by property, and the answer was no, so that did not instill a great deal of confidence. That being said, I would reiterate that several people made the claim that they had done the hard money loan and gotten paid back.
So 6 months come and go and I do not get paid anything. I will say that they never ignored my concerns. When I asked for a meeting with Dutch to discuss my investment strategy, he did meet with me and was pleasant. Anytime I called or emailed, I did get a reply. It was often not a very satisfying answer, but at the very least, they did not dodge me. Also, they were very respectful. I never felt like they treated me poorly, so I appreciated that, but I also felt like I was never getting a full and complete answer. This could be due to the fact that the member coordinators (each inner circle member is assigned a dedicated customer service person) may not have had the information themselves. My only complaints with their customer service are 1. I never felt like I was getting all of the information when I asked probing questions 2. They did miss a few scheduled calls with me 3. Overpromising and under-delivering in terms of expectations at times.
I really needed some money from this hard money loan for some unexpected expenses that I had, so I had to go back and forth with them several times, but I did eventually get a payment. The first partial payment that they made to me was in June of 2023. The last partial payment they made to me was in December of 2023. As of this writing (7-19-2024) they have paid me back enough that I am in profit, but they still owe me $4,000 and that amount is accruing at a rate of +$500 per month. I specifically and repeatedly told my coordinator that they are accruing $500/month debt on a small balance and it would be in their best interest to just pay me and my coordinator has confirmed that leadership is aware of the situation, but they have chosen not to pay. I am happy to accrue the $500 / month interest so long as they come through and eventually pay, but they have paid in the past, so I am hopeful that they will do so in the future.
Given that they paid me back enough to be in profit and that there were still investors who were very happy with their relationship with RAD, I thought I would invest again, but I did not want to do a hard money loan. I wanted my investment to be secured by real assets, so I did a 1% deal and a joint venture deal. The 1% deal was for vacant land in Rancho Cucamonga, California. Essentially, I own 1% of a piece of land there that RAD plans on developing over the next few years. I also have a joint venture with them on a single family property in Philadelphia that is currently rented. I know you might be saying to yourself “Why would he invest again?!” and the answer is multi-faceted and a little complicated. In addition to the aforementioned reasons (I am in profit from the hard money loan and the positive testimonials from some long-term members), I had already invested 50k to join and there was no way to get that money back. I thought by investing in real assets that I would have a better chance of not losing on my investment. Also, and I sincerely mean this, I really want this relationship to be successful. I joined the program to build something together. I want RAD to be successful and, in turn, my family to be successful. Ideally, I would like to have 5, 10, maybe even 15 joint venture rental properties. I spoke with a lady who started off with very little like myself and built her portfolio up to 9 joint venture properties and had been pretty happy with the relationship. I still want that. I still hope for that.
I have no update on what is going on with the land, but when I bought in to that deal in January of 2024, I was told that the turnaround time on that deal would likely be 2-4 years, so that is still operating within my expectation.
Sadly, the joint venture property deal has not gone exactly according to plan. I bought into the deal in January of 2024 and I was told my portion of the profit from rent would be paid to me starting in March of 2024 (supposed to be about $300 / month). As of this writing (7-19-2024), I have received no rent payments, but my appfolio does show rent being paid every month. My coordinator (who is now a new person since my original coordinator left) has said that the rent payment has not gone out to me due to an accounting audit. I have been given multiple dates as to when they expect payments to start going out, first it was March 24, then May 24, then June 24, the latest is September 24. While I certainly understand the need for a company to do an audit, particularly for the REIT, I am not sure why that would slow down or prevent rent moneys being paid for rent on joint ventures. They have expressed some issues associated with turnover in the accounting department, but they have been saying that since early to mid 2023 maybe? That line, at least from my perspective, is getting a little long in the tooth.
Life and business are complicated. Multiple things can be true at the same time. At this point, I don’t really know what to think. I desperately hope that Rad pulls through this hard time and returns to the successes associated with the investors I spoke to prior to joining. Like I said, I want this to be successful, not only for me and the other investors who feel at risk of losing a great deal of money, but for them and the people that they employ as well. I have no desire to be part of any lawsuit or liquidation event. My desire remains the same as it did when I joined, to try and build something with a partner that I can trust to improve the lives of my loved ones. That being said, I could not, in good conscience, recommend RAD to anyone such that it is today. I am not calling them a scam, but based on my experience up to this point, they are not in a position right now to provide the customer experience necessary for the associated 50k fee to join. If that changes in the future, and I really hope it does, I will be the first to publicly alter my opinion and report it out to all of you.
I will close by saying, I have absolutely no inside information as to what is going on at RAD. I am not privy to their financial situation. Everything that you have read in this piece is simply my own experience with RAD inner circle up to this point.
Feel free to ask me any questions that you may have and I will do my best to respond to them.
$50,000..... Wow now I know understand why if I ran a training program I would spend my time there than on my investments. I got a master's in real estate and finance from one of the top colleges in the country for less than that.
@Chris Seveney although the Inner Circle and its membership is run under our educational company, and it is real estate and alternative investing education, mentorship etc., it is much more than that. Being part of the Inner Circle allows for Joint Venture deals, other alternative investment opportunities etc. I can provide further details for your better understanding if you'd like, just direct message me. Have a great weekend.
Vr Brent
Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?