RAD Diversified SCAM ALERT!!!

[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 I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.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."

[Scott Trench]

I have no idea what is happening at this particular fund, and can’t chime in on any specifics.

I will say that I, along with many investors in the community, have likely lost a lot of money. Syndicators who bragged about how smart they were, showed off fancy lives, cars, private jets, and mansions, second homes, and wrote books and sold expensive courses about how smart they are at investing are being exposed all over the place. Sometimes, these syndicators who are actively in process of wiping out investor’s life savings, even brag about how automated their businesses are and how they don’t have to work!

I’m not making the same mistakes with my money again, nor will I allow investors who made their name in part on BiggerPockets to go unexposed if they treat investors poorly, lose huge amounts of investor money, or clearly mismanage funds.

We are starting PassivePockets.com and launch it in June. We will learn how to find and vet “good” and expose “bad” for ALL to see. In the meantime, we will watch the forums for more posts about the syndicators who handle situations to the chagrin of their investors. 

[Stuart Udis]

If you think the syndications are bad now, just wait for the new wave of syndicators who spent $10k-$20K on a course and then wiggled their way into a CO-GP position, built out a social media presence and purportedly went from 0 to 500 units in a year get hold of LP money. If you think this is bad now, wait for these individuals to face adversity. The scariest part is how much easier it’s gotten for syndicators to get in front of their target audience thanks to the reach of social media. 

[Jay Hinrichs]

Quote from @Sebastian Bennett:

BTW here's the link https://investwealthsummit.com/

Very little is mentioned about RAD which seems odd since its clearly a marketing opportunity to pull in more capital. Questions why they aren't marketing the RADD brand better? Perhaps because they know people will do a simple internet search and see the *****torm that's brewing?

once this stuff gets on BP and its monster google search results IE goes to the top of the page its game over.. Anyone googling this will see it basically on the first page.. Kind of like Rip off Report you get tagged on that one and it goes front page or very close to it.. and very sticky. Its why for all these folks who work with investors in some sort of syndication mode pre emptive REAL communications or reputation management is so critical and it appears many missed that boat and have allowed their companies rep. ( whether deserved or not ) Trashed.

[Chris Seveney]

Quote from @Jay Hinrichs:

Quote from @Sebastian Bennett:

BTW here's the link https://investwealthsummit.com/

Very little is mentioned about RAD which seems odd since its clearly a marketing opportunity to pull in more capital. Questions why they aren't marketing the RADD brand better? Perhaps because they know people will do a simple internet search and see the *****torm that's brewing?

once this stuff gets on BP and its monster google search results IE goes to the top of the page its game over.. Anyone googling this will see it basically on the first page.. Kind of like Rip off Report you get tagged on that one and it goes front page or very close to it.. and very sticky. Its why for all these folks who work with investors in some sort of syndication mode pre emptive REAL communications or reputation management is so critical and it appears many missed that boat and have allowed their companies rep. ( whether deserved or not ) Trashed.

 I did not go to the best ever conference, but I heard from people who went the sentiment there was the same. GP's going dark on the LP's, no response to communications etc. LP's are starting to get really ticked off about it and if I was one I would as well. There is going to be ALOT of money lost in the coming years, and investing does not always make you money - those that are the most successful at losing money are those that provide proper communication to their investors. 

Just like going to a doctor and them saying "this is gonna hurt", you do not like them telling you, but i would rather be told them have them do it and me scream WTF that hurt, why did you not tell me.

The other area where people can overcome this is by actually managing the asset and portfolio and showing your investors that. Going on stage speaking at events and selling training courses to me shows me you have interest in one thing and one thing only - and its not your investors. 

[Jay Hinrichs]

Quote from @Scott Trench:

I have no idea what is happening at this particular fund, and can’t chime in on any specifics.

I will say that I, along with many investors in the community, have likely lost a lot of money. Syndicators who bragged about how smart they were, showed off fancy lives, cars, private jets, and mansions, second homes, and wrote books and sold expensive courses about how smart they are at investing are being exposed all over the place. Sometimes, these syndicators who are actively in process of wiping out investor’s life savings, even brag about how automated their businesses are and how they don’t have to work!

I’m not making the same mistakes with my money again, nor will I allow investors who made their name in part on BiggerPockets to go unexposed if they treat investors poorly, lose huge amounts of investor money, or clearly mismanage funds.

We are starting PassivePockets.com and launch it in June. We will learn how to find and vet “good” and expose “bad” for ALL to see. In the meantime, we will watch the forums for more posts about the syndicators who handle situations to the chagrin of their investors. 

 Morning Scott,  I missed this post and posted above but its worth repeating. What I see irrespective of how the deals are going is the lack of communications from these syndicators
with respect to how their deals are actually doing. Communication good or bad goes along way to keeping investors from being upset to going ballistic on the internet and creating irreparable harm to the syndicators reputations.

It seems that most of the BP influencers I have seen over the years have stepped into MF syndication with varying results. So to that end they are new to the game never went through a deep downturn cycle. And for them rasing capital on SM BP facebook whatever has been fairly easy compared to others who dont have a big SM or BP presence.  This is where the crowdfunding sites helped a lot fo those types scale.

The play book as you described is an old one when it comes to marketing themselves nothing different than what the how to trainer do. The difference is they are stuck with a certain asset as we are seeing. The trainers just pivot to what is working today and set up training in that niche. But its all the same big budget for marketing and go hammer the airwaves/internet. Sell the sizzle etc etc.

Having been front and center in the late 80s of a billion dollar syndication company ( was an independent contractor in charge of finding and entitling their land projects in northern CA.) I saw what happens when these things start to go south and from my mind most of these companies that could be struggling now simply do not have enough staff to handle all their investors needs in a timely fashion and when things go bad like we see posted on BP right now lack of up front communications leads to Investors going out of their minds with worry and the blame game starts. Then of course google searches bring all these things to the front page and next thing you know reputations get hammered..

As one who personally had a medium sized HML company going into 2007 2008 with 600 loans on my books and by 2010 went through a massive re value melt down all of us in that business got hammered for us we started in 2001 and by 2010 had to basically shut down let go 90% of staff and spent 3 to 4 years hemorrhaging our net worth's to make sure our banks got paid ( which to my personal financial situation was devastating) Most of my peers went out of business completely ( BK) I did not but by 2011 I was basically starting over. But with my head held high gone was all the normal trappings of RE success being served as a big slice of humble pie :(.

And as my core commercial banks understood that I doing everything i could to protect them. The one bank left kept a 1 mil line of credit for me ( down from 15 mil) had me  on a 90 day extensions for 4 years and allowed to to earn back in. Its taken basically 12 years to get back to maybe half of what I had at the time.

Bottom line RE cycles and I suspect most of the folks that are having issues did what they thought was correct or right and the market has gone against them.. If they are not changing their personal lifestyles to adjust to this, not communicating, doing new deals leaving old ones to wither then you know what your dealing with the goal ( human nature i guess) is to keep lifestyle intact at all costs.

To that end I just paid off yesterday my last legacy bank debt took me 12 years but its done an gone now. But those same banks stuck with me and allowed me to pivot and build up my new construction side using bank debt intead of HML.. etc etc.

So If i was guessing most of the folks having issues in the space have very little assets aimed toward client relations and communications but still do big spends on advertising for new blood.

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Jay Hinrichs:

Quote from @Sebastian Bennett:

BTW here's the link https://investwealthsummit.com/

Very little is mentioned about RAD which seems odd since its clearly a marketing opportunity to pull in more capital. Questions why they aren't marketing the RADD brand better? Perhaps because they know people will do a simple internet search and see the *****torm that's brewing?

once this stuff gets on BP and its monster google search results IE goes to the top of the page its game over.. Anyone googling this will see it basically on the first page.. Kind of like Rip off Report you get tagged on that one and it goes front page or very close to it.. and very sticky. Its why for all these folks who work with investors in some sort of syndication mode pre emptive REAL communications or reputation management is so critical and it appears many missed that boat and have allowed their companies rep. ( whether deserved or not ) Trashed.

 I did not go to the best ever conference, but I heard from people who went the sentiment there was the same. GP's going dark on the LP's, no response to communications etc. LP's are starting to get really ticked off about it and if I was one I would as well. There is going to be ALOT of money lost in the coming years, and investing does not always make you money - those that are the most successful at losing money are those that provide proper communication to their investors. 

Just like going to a doctor and them saying "this is gonna hurt", you do not like them telling you, but i would rather be told them have them do it and me scream WTF that hurt, why did you not tell me.

The other area where people can overcome this is by actually managing the asset and portfolio and showing your investors that. Going on stage speaking at events and selling training courses to me shows me you have interest in one thing and one thing only - and its not your investors. 

I don't go to any of these events personally its seems like its a circuit and you have basically all the same players on stage as experts I don't know how much anyone can get out of these events ( i have spoke at many in years past so i know you can only gloss over stuff). And have known or done business over the years with many of the speakers.. And I see some of my clients from years ago that I funded their first deals now on stage as the experts :) ) Which is great for them we all have to start somewhere.  But for the current crop of these events It seems like the same 20 to 40 people going form one to another. And for sure its to build thier brand and bring in new investors to their deals I get that.. We are all in business and in that space building your investor base or client base is job number 1.

[Jay Hinrichs]

Quote from @Scott Trench:

I have no idea what is happening at this particular fund, and can’t chime in on any specifics.

I will say that I, along with many investors in the community, have likely lost a lot of money. Syndicators who bragged about how smart they were, showed off fancy lives, cars, private jets, and mansions, second homes, and wrote books and sold expensive courses about how smart they are at investing are being exposed all over the place. Sometimes, these syndicators who are actively in process of wiping out investor’s life savings, even brag about how automated their businesses are and how they don’t have to work!

I’m not making the same mistakes with my money again, nor will I allow investors who made their name in part on BiggerPockets to go unexposed if they treat investors poorly, lose huge amounts of investor money, or clearly mismanage funds.

We are starting PassivePockets.com and launch it in June. We will learn how to find and vet “good” and expose “bad” for ALL to see. In the meantime, we will watch the forums for more posts about the syndicators who handle situations to the chagrin of their investors. 

Scott,  @Steve Vaughan is  one of my all time hero's on BP and someone I think gives the absolute best advice on a realistic methodology for attaining this mystic financial freedom from RE . He gives realistic no fluff advice for those starting out and of course that's a huge part of BP audience not the guru's or the guys at are at the top already or say they are.. but real advice on how to work in a local market and do the things it takes to get there and how long it generally will take a person if they are dedicated extremely focused on the goal as Steve and his family were.  I believe this is the type of Person BP should be courting for pod casts or whatever type of presentation your contemplating in the future to help guide your BP members that are starting out.  Of course that assumes he is willing to do that :)  

[Brent Mendenhall]

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 

 Athur Crum, since you want to question the creditability of one of our young employees who was trying to do their job and provided accurate information inform you of the current freeze on redemptions/distributions please feel free to contact me directly.  We also have provided you with the actual link to the 1U Amendment submission to our SEC filing etc. and our SEC Offering Circular (which you always had access to review, its posted on our website).  [email protected]

[Stuart Udis]

@Brent Mendenhall Complaints of lack of communication is a common theme these days amongst passive investors. Most real estate investors are facing some degree of adversity right now but good leadership communicates well and instills confidence. With all due respect, I don't believe offering your email address is the communication your investors are looking for. There are complaints on these message boards of investors making investments believing to have invested in your REIT only to find out a month later the shares were never acquired. While not personally invested in any of your investment offerings, I raised questions about the valuations of properties listed in Radd's circular & misleading content about a flip released in an email last week. There are also investors who purportedly requested their redemptions before the freeze occurred which were not honored.

@Dutch Mendenhall has been active on BP since 2020. He has failed to respond to any of these concerns head on. Meanwhile he has gone so far as to update his profile page background to promote  a 3 day wealth summit. An event that bears his name on the stage backdrop. Contrast this to your BP profile that was created two weeks ago clearly for crisis management purposes. I am sure you can appreciate how it feels from your investor's standpoint when there is a freeze on redemptions and the companies leadership is spending 3 days hosting a seminar. As a company you are continually sending the wrong message to those who invested with you.  I believe as an organization you should take a look at how you are handling your investor relations and strive to do better.

[Chris Seveney]

Quote from @Stuart Udis:

Having experience with a Reg A offering, the audited financials should have had to have done an asset valuation with a footnote and how they came up with that valuation. 2023 audited financials are due April 30th (next week). Checking the link Rad provided, it appears they have yet to submit their 2022 audited financials. 

[Brent Mendenhall]

Stuart, I absolutely understand and I am aware there are processes we are working on. The investors on this thread have been provided information surrounding the current freeze of redemption (in some cases numerous engagements from our Investor Relations Team). I went into our CRM and viewed calls, emails etc. Our CEO has held Zoom calls to discuss the freeze and answer questions. We also hold monthly Zoom calls for both our REIT and Inner Circle (i know they have been doing this since I've joined the Team 24 monthsvl ago. I did engage with the Real Estate Team and Marketing ref the ad you mentioned and indeed it was a 2019 advertisement. We can definitely do better, we are working on processes, communication etc. I created my BP profile due to exactly what you stated, we weren't actively on BP. In reference to property evaluations, our Real Estate team evalutes properties regularly but we utilize a 3rd party evaluation to validate. We have over 6000 investors between our two REITS and our Inner Circle. I definitely appreciate your feedback.

Thank you, Brent

[Brent Mendenhall]

Quote from @Chris Seveney:

Quote from @Stuart Udis:

Having experience with a Reg A offering, the audited financials should have had to have done an asset valuation with a footnote and how they came up with that valuation. 2023 audited financials are due April 30th (next week). Checking the link Rad provided, it appears they have yet to submit their 2022 audited financials. 

Chris, you're absolutely correct.  We have been transparent with our investors (that attend the monthly Zooms etc.) on the status on our RADD REIT financials for 2022 and the delay.  I will say, they are now submitted to the auditors.  Although I won't mention names etc., late Spring to early Summer 2023, we lost our Chief Financial Officer, another accountant passed away, another had a major heart attack, and our Controller son passed away and we provided an extended leave.  We have a new CFO on board for about 6 months now, a new Controller, new employees, two outside agencies provided support etc. to rectify the issues.  We are done with our RADD Land REIT financials and our 2023 financials for RADD REIT are in a good position.  Thank you for inquiring.
Brent

[Brent Mendenhall]

Quote from @Stuart Udis:

@Brent Mendenhall Complaints of lack of communication is a common theme these days amongst passive investors. Most real estate investors are facing some degree of adversity right now but good leadership communicates well and instills confidence. With all due respect, I don't believe offering your email address is the communication your investors are looking for. There are complaints on these message boards of investors making investments believing to have invested in your REIT only to find out a month later the shares were never acquired. While not personally invested in any of your investment offerings, I raised questions about the valuations of properties listed in Radd's circular & misleading content about a flip released in an email last week. There are also investors who purportedly requested their redemptions before the freeze occurred which were not honored.

@Dutch Mendenhall has been active on BP since 2020. He has failed to respond to any of these concerns head on. Meanwhile he has gone so far as to update his profile page background to promote  a 3 day wealth summit. An event that bears his name on the stage backdrop. Contrast this to your BP profile that was created two weeks ago clearly for crisis management purposes. I am sure you can appreciate how it feels from your investor's standpoint when there is a freeze on redemptions and the companies leadership is spending 3 days hosting a seminar. As a company you are continually sending the wrong message to those who invested with you.  I believe as an organization you should take a look at how you are handling your investor relations and strive to do better.

 Stuart, we are looking at many improvements.  We actually moved some leadership around and into our Investor Relations Directorate.  I am a career military/DOD member and joined RADD only about 24 months ago after 34 years under the Army Special Operations Command.   This is why the title they gave me Director of Special Operations that someone asked about on this thread. They really didn't know what to title me as I run our Leadership Development (see below), our RADD Scholarship Program, assist in planning our Farming and Ranching Operations, and just about anything the Senior Executive Staff throws at me with limited guidance and intent.  I'm more comfortable working within those parameters than others.  Yes, I am the older brother of our CEO.  I joined my brother's journey for the last few years of my "working life" ha.   I understand the importance of transparent communication vertically and laterally.  I understand coaching, training, and mentoring our Team.  We are heading in the right direction.

In regard to the Invest Wealth Summit (IWS), this is run through another company, not RAD Diversified.  It is in fact owned by our CEO and Co-Founder.  Again, I understand many may not be aware of the differences etc. and I understand how it appears etc.  I will discuss this with our CEO.

I actually started an internal Leadership Development Program run through Percipio/Skillsoft.  I have 32 leaders from Team Leads, Directorate Leads, to our Senior Leaders all working through their lessons over the last 18 months, weekly one on one engagements with each of them (obviously it doesn't necessarily happen each week due to conflicts etc.).  

[Stuart Udis]

@Brent Mendenhall Understood. It is still a bad look when your organization appears to have approximately 11 staff members on the payroll performing various marketing and content production services yet as a company you are recycling 5 year old videos in your emails. How is this overhead advancing Radd's investment activities? Also, I don't believe your investors are any more pleased knowing your CEO is pursuing other business initiatives when their is clearly some adversity in the RADD business preventing redemptions. Perhaps greater focus should be placed there?

[Jeff Roma]

I was looking into RAD for a BLOC.  The process has felt a little shoddy.  The agreement they sent showed a monthly interested payment of $2,500 (based on total BLOC amount).  When I questioned it they assured me that I would only pay interest on the money I draw on.  They claim once the paperwork is completed and the approved loan funds are moved into the lawyer's escrow account, for every drawl I make there will be a revised sub contract declaring my monthly interests payment based on the amount drawn and not the total amount approved.  In order to get the BLOC funds deposited for me to access they require me to send $10k for fees to an escrow account.  What do you all think?  Thanks in advance. 

[Jennifer O.]

Quote from @Brent Mendenhall:

Quote from @Chris Seveney:

Quote from @Stuart Udis:

Having experience with a Reg A offering, the audited financials should have had to have done an asset valuation with a footnote and how they came up with that valuation. 2023 audited financials are due April 30th (next week). Checking the link Rad provided, it appears they have yet to submit their 2022 audited financials. 

Chris, you're absolutely correct.  We have been transparent with our investors (that attend the monthly Zooms etc.) on the status on our RADD REIT financials for 2022 and the delay.  I will say, they are now submitted to the auditors.  Although I won't mention names etc., late Spring to early Summer 2023, we lost our Chief Financial Officer, another accountant passed away, another had a major heart attack, and our Controller son passed away and we provided an extended leave.  We have a new CFO on board for about 6 months now, a new Controller, new employees, two outside agencies provided support etc. to rectify the issues.  We are done with our RADD Land REIT financials and our 2023 financials for RADD REIT are in a good position.  Thank you for inquiring.
Brent

While your staff previously mentioned the REIT reached its capacity to raise, that doesn't explain why my friend's loan hasn't been repaid. She generously stepped in to provide the funds, and since then, she's been pressured to keep renewing the loan without any payments being made. On top of that, the promised 20% interest for the first 8 months hasn't materialized. Nor has she received the promised 1 point per month for each month, which is past due. Disturbingly, she heard similar stories from several others who claim RAD Diversified has done the same thing to them. I keep telling her to call an attorney because, as others have mentioned - this is Securities Fraud. This part of the situation needs a clear explanation as well. This is causing a lot of stress and disappointment for people who trust you with their life savings.

[Brent Mendenhall]

Quote from @Jeff Roma:

I was looking into RAD for a BLOC.  The process has felt a little shoddy.  The agreement they sent showed a monthly interested payment of $2,500 (based on total BLOC amount).  When I questioned it they assured me that I would only pay interest on the money I draw on.  They claim once the paperwork is completed and the approved loan funds are moved into the lawyer's escrow account, for every drawl I make there will be a revised sub contract declaring my monthly interests payment based on the amount drawn and not the total amount approved.  In order to get the BLOC funds deposited for me to access they require me to send $10k for fees to an escrow account.  What do you all think?  Thanks in advance. 

@Jeff Roma you may be dealing with a lender at www.raddiversifiedllc.com , not RAD Diversified REIT. This is discussed earlier in the thread. This has been mentioned in the past and we receive frequent calls to our main office in reference to this lending company utilizing this web URL etc. I caution you in working with this organization.

[Brent Mendenhall]

Quote from @Jennifer O.:

Quote from @Brent Mendenhall:

Quote from @Chris Seveney:

Quote from @Stuart Udis:

Having experience with a Reg A offering, the audited financials should have had to have done an asset valuation with a footnote and how they came up with that valuation. 2023 audited financials are due April 30th (next week). Checking the link Rad provided, it appears they have yet to submit their 2022 audited financials. 

Chris, you're absolutely correct.  We have been transparent with our investors (that attend the monthly Zooms etc.) on the status on our RADD REIT financials for 2022 and the delay.  I will say, they are now submitted to the auditors.  Although I won't mention names etc., late Spring to early Summer 2023, we lost our Chief Financial Officer, another accountant passed away, another had a major heart attack, and our Controller son passed away and we provided an extended leave.  We have a new CFO on board for about 6 months now, a new Controller, new employees, two outside agencies provided support etc. to rectify the issues.  We are done with our RADD Land REIT financials and our 2023 financials for RADD REIT are in a good position.  Thank you for inquiring.
Brent

While your staff previously mentioned the REIT reached its capacity to raise, that doesn't explain why my friend's loan hasn't been repaid. She generously stepped in to provide the funds, and since then, she's been pressured to keep renewing the loan without any payments being made. On top of that, the promised 20% interest for the first 8 months hasn't materialized. Nor has she received the promised 1 point per month for each month, which is past due. Disturbingly, she heard similar stories from several others who claim RAD Diversified has done the same thing to them. I keep telling her to call an attorney because, as others have mentioned - this is Securities Fraud. This part of the situation needs a clear explanation as well. This is causing a lot of stress and disappointment for people who trust you with their life savings.

@Jennifer O. If this is in reference to a HML through our Inner Circle, this is different than our two REITs. You friend should understand this and if not, I will gladly reach out or she can contact me directly or [email protected] or her Inner Circle Coordinator.

[Brent Mendenhall]

Quote from @Barbara Radke:

I have 25K invested. No one is answering the phones and the voice mail now sounds like an off shore answering recording. He is advertising like crazy for his upcoming seminar. Maybe us investors need to show up?? 

 @Barbara Radke we recently moved our offices from one location in Tampa to our new offices downtown.  I called our phones once I saw your post and indeed you were correct.  I called our IT department and these issues have been fixed.  (833-723-7348) I apologize I did not reply sooner as I recently created an account on here and just wanted to reach out and let you know I took your information and corrected the issue.  If you try our phones now and you still don't get a response in a timely manner, please reach out to me directly.  Additionally, you can email [email protected]

Thank you for bringing the phone issue to our attention.  

[Brent Mendenhall]

Quote from @Stuart Udis:

I agree with @Jay Hinrichs. A lawsuit at this stage is likely throwing good money after bad. Best course of action is to work on better accountability/communication and perhaps push RAD to re-allocate some of their operational spend on personnel that can maximize the profitability of  it's portfolio.

My observations of their business tends to focus on their Philadelphia operations/portfolio which I understand to be a sizeable portion of RAD'S holdings. While I hate to be the bearer of bad news the latest email to hit my inbox (yesterday) was titled: [Walk Through] We flipped this property for $200K....  Contained within the the email was a 5 Minute video featuring @Dutch Mendenhall providing a tour of 4488 Livingston Street, a single family home I can best describe for those not familiar with Philadelphia as located in a "C" neighborhood with no barriers of entry. 

I am not going to even get into the video itself because the renovation looks like a complete disaster but relying solely on information that's public and easily accessible, this single family home was purchased by DH1 Fund LP, a RAD affiliate in 2017 at a sheriff sale and transferred from predecessor company to DDH Fund LP in 2019. A permit was was pulled in 2019 to close out violations as the remarks indicate the home was renovated without permits. Fast forward to now & there are no permits that have been issued since 2019. Oh and there is no sales history for this home having sold. Thus it was as not flipped (unless you consider the nominal transfer between predecessor deed holder and current deed holder a flip).

Either this is a video from 2019 that's being recycled by their rather robust marketing division or RAD is renovating this C neighborhood home twice in a 5 year period (and for a second time without permits). Regardless of which holds true, for a company who represents to have a $250M portfolio to select this home to be showcased in their marketing materials at this time speaks to the operational disconnect that exists.

I've written on this before but investing passively requires even greater diligence than investing actively. Active investors have to conduct diligence on the investment thesis/ opportunity whereas anyone investing passively has to conduct diligence on the operators as well as the investment thesis/investment opportunity. I can't speak to the legalities of the paused distributions ( I did not invest in any RAD offerings) but what I can observe are poor operations. Again, your time and energy is better spent increasing accountability and pushing RAD to improve their staffing with individuals qualified to maximize their portfolio at this time.....and in the future spend some time and money to perform adequate diligence before you invest passively. 

@Stuart Udis I went back and watch the video.  We could well have purchased this property at auction and initially thought we would flip this property.  We have done this with other properties also, initially look at flip, decide to hold.  We look at market trends, economy, location etc. in deciding final hold or flip of a property.  In reference to you concerns with permits, I went into our Property Management software Appfolio and looked at the property information.  I is currently rented and also came across this statement that someone in property management at the time added:

"The property was rehabbed by V***** Construction in 2018. Got caught by L and I for not pulling permit. Hired an architect to alleviate the problems. New addition built to add a bedroom, bathroom and walk in space along with a wood deck in the back."

I can't find information on any other permit information.

I agree with you we can do better than using a 2019 video.

Thank you for sharing your information and findings.

Brent

[Barbara Radke]

Thank you Brent, I appreciate you looking into this and taking the time to reply. 

[Brent Mendenhall]

Quote from @Barbara Radke:

Thank you Brent, I appreciate you looking into this and taking the time to reply. 

@Barbara Radke you're welcome.  Please reach out to me at any time.

Thanks!

[Norberto Villanueva]

I thought to take a look at their track record while watching their pitch fest and left. Thanks for sharing and saving me the time!

[Chris Seveney]

Quote from @Account Closed:

As an employee well I quit a month ago I can say this place is a scam. But don’t worry they burn their employees just as bad

As they’re investors.  Parties, cars , cookouts , new office

Downtown is where all the investors money is going to 

Ouch. Since RAD has someone on the forum they can respond to this, my question would be you make some pretty damaging statements there, do you have any dates etc. you can refer to like the cookout at XYZ on this date or the party at ABC on this date or ABC drives a blank model company car...

[Brent Mendenhall]

Quote from @Account Closed:

As an employee well I quit a month ago I can say this place is a scam. But don’t worry they burn their employees just as bad

As they’re investors.  Parties, cars , cookouts , new office

Downtown is where all the investors money is going to 

@Account Closed I ran your name you are utilizing "Alleyne Warner" through HR and IT and neither validated a former employee with this name.  Thank you, Brent