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Updated 4 months ago, 08/13/2024
Brandon Turner ODC fund
Hey, I invested back in July in array apartments fund. I'm worried, I was told to wait 6 months for distributions and we are now heading into May and $0 has been distributed. I came here to see if anyone else has invested in ODC and if they are in good standing.
I have invested in many syndications however not this particular one. What were the return projections for this particular fund and what types of properties were they targeting? I will tell you that many people who invested in Class B or C apartments during that time got a variable rate loans which was based on SOFR ( secured overnight financing rate) + set number. The rates in July 2022 were around 1.5% and now 4.8%. That will kill the cash flow. You need to reach out and get update on status.
Yeah, the projected returns were 5-7% cashflow and 17-22% irr. I asked about interest rates before investing and they did a special deal that it can only go up 1%. I just got a distribution of 1%. A far cry from the 5% min.
Quote from @Guillermo Sanchez:
Hey, I invested back in July in array apartments fund. I'm worried, I was told to wait 6 months for distributions and we are now heading into May and $0 has been distributed. I came here to see if anyone else has invested in ODC and if they are in good standing.
Have you received any communication from the sponsor? What did the PPM state? Have you called someone from the sponsors team?
I have not invested in the fund.
- Chris Seveney
The March report on the Array deal said that distributions were processed on April 28 and it takes 3-5 business days for us to receive the ACH in our bank accounts.
I have not received the first quarter distribution on the ODC Fund 2 for mobile home parks. Has anyone else received a distribution?
Quote from @Randy Rodenhouse:
I have invested in many syndications however not this particular one. What were the return projections for this particular fund and what types of properties were they targeting? I will tell you that many people who invested in Class B or C apartments during that time got a variable rate loans which was based on SOFR ( secured overnight financing rate) + set number. The rates in July 2022 were around 1.5% and now 4.8%. That will kill the cash flow. You need to reach out and get update on status.
I believe it is a large class A rental apartment complex. I was interested at the time it was being promoted but didn't not to invest. Just decided it is too risky for my taste. TX insurance cost was getting really high and not a fan of the debt structure although ODC did things to manage the risk associated with the debt. I am interested to see how the project turns out in the next few years.
Guess we'll see in the coming years. I got paid my distribution.
Quote from @Steve Kehoe:
I have not received the first quarter distribution on the ODC Fund 2 for mobile home parks. Has anyone else received a distribution?
The quarterly updates for the ODC MHP funds posted today. Fund 2 looks like it will have a 1Q distribution at the level of 6.5% annualized, same as 4Q 2022 but down from the full 8% preferred that was distributed in the first three quarters of 2022 and all of 2021. According to the update, ODC thinks that the distribution has the potential to rise as they continue to drive occupancy, but they want to be conservative and keep the fund healthy. Keep in mind that Fund 2 is the oldest active ODC fund and relatively far along in terms of park stabilization and value-add. Other funds are still spending significantly more on repairs/infill/renovation/etc. and are therefore distributing a lot less if you are a class B (pref + equity upside) LP.
Alexander, I got notice of the distribution but no details like you have. How did you get those details?
The ODC investor portal has the dollar amount of the distribution for whichever fund(s) you have invested in. You can use that number to calculate the annualized % yield and track it over time. Monthly fund updates have a lot of useful information, but are no longer emailed to investors -- they are only posted on the portal. If you save the date and amount for each transaction in Excel, it's easy to calculate your IRR. Currently Fund 2 is at 7.4% IRR for the preferred distribution over 2 years 9 months (assumes equity unchanged from initial investment).
I invested in the ODC Sunbelt fund and so far this is the poorest performing investment in my portfolio. It is on pace to return less than 1%, way off the expected return for year one. Latest updates shows all metrics are continuing to degrade all metrics going in the wrong direction. Good luck with Array. Hopefully will perform better.
I was in Fund 1 and saw a 72% return in two years. Then invested in the Hollister deal the end of 2022 looking for depreciation - that's been about the only benefit to date. The first distribution was just received and on pace for 1%. It's early but all projections are short.
I'm in the Sunbelt Diversified Fund. They just suspended distributions. After 1.5 years I received 4 months of distributions at around 1% annually. I think Brandon is a better sales person then he is at running syndications especially if they aren't doing well. But he will still be a very rich man.
Quote from @Jim Peret:
I'm in the Sunbelt Diversified Fund. They just suspended distributions. After 1.5 years I received 4 months of distributions at around 1% annually. I think Brandon is a better sales person then he is at running syndications especially if they aren't doing well. But he will still be a very rich man.
- Residential Real Estate Investor
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I think Brandon is an above board guy for sure who definitely knows what he's doing. That being said, I do fear the ODC may have been growing too fast. And when you grow too fast (especially in a volatile market like the one we're in) mistakes can get made. I can't say anything for sure about this deal as I'm not an investor in it or any other Open Door Capital deals. Just my feeling on the matter.
With all the things going wrong on Sunbelt Fund. He couldn't have done any real due diligence. Hoping he can get us out of his mess. Two weeks before we were notified about cutting off distributions he gave us a pitch to donate to his Hawaii relief fund. Tell me he didn't know this was coming two weeks before he notified us.
Quote from @Sean Barber:
Quote from @Jim Peret:
I'm in the Sunbelt Diversified Fund. They just suspended distributions. After 1.5 years I received 4 months of distributions at around 1% annually. I think Brandon is a better sales person then he is at running syndications especially if they aren't doing well. But he will still be a very rich man.
It's bad. I hope not. It's like he missed everything when doing due diligence.
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
Quote from @Mark Lopez:
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
Many Multi-family properties now in debt service trouble as the GPs took out very risky 2-3 yr floating rate or adjustable loans so they could cash flow after buying very expensive 3Cap apartments, which loans have gone from 1.5% to 5% or higher, and knowing that obvious and predictable risk since every primate could see mega-inflation coming in early 2021 due to more money printed in 2 yrs than first 200 yrs of country, They "smartly" took out Rate Cap insurance, (cost 50k for a 12 month policy on 10mil loan to cap variable insurance rise about 1-1.5% above the origination level) but now that US 10yr up 10x from 0.31 in 3/2020 to 4.2%, that same insurance policy is 1.5-2.0 million not 50K, so They can't cover the much higher debt service nor buy new cap insurance without shutting down distributions or capital calls. Only solution is hope FED cuts interest rates fast and deep, but all macro-data says US economy doing great with fed funds at 5.33% so foreclosure becoming only option.
now if a Chimp with a learning disorder like me could see this coming, perhaps, the syndicators that charged high fees and had 5 different "share classes" saw it coming too and perhaps that was their plan all along? I think no one should invest with anyone who doesn't put 20-30% of the capital in themselves as a step 1 screening.
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Quote from @Jim Peret:
Quote from @Mark Lopez:
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
In Brandon's defense, they have a big company and that's his role in it. He can't do everything.
That being said, it does appear they grew too fast and so it unfortunately doesn't surprise me that the results are beginning to drag.
Quote from @Andrew Syrios:
Quote from @Jim Peret:
Quote from @Mark Lopez:
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
In Brandon's defense, they have a big company and that's his role in it. He can't do everything.
That being said, it does appear they grew too fast and so it unfortunately doesn't surprise me that the results are beginning to drag.
I would respectfully disagree. If you are the owner of a company and have a deal going bad, your role should be to be communicating to investors not selling some training program or selling your other deals. If he was raising institutional money he would get destroyed by advisors if he took that approach.
- Chris Seveney
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Quote from @Chris Seveney:
Quote from @Andrew Syrios:
Quote from @Jim Peret:
Quote from @Mark Lopez:
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
In Brandon's defense, they have a big company and that's his role in it. He can't do everything.
That being said, it does appear they grew too fast and so it unfortunately doesn't surprise me that the results are beginning to drag.
I would respectfully disagree. If you are the owner of a company and have a deal going bad, your role should be to be communicating to investors not selling some training program or selling your other deals. If he was raising institutional money he would get destroyed by advisors if he took that approach.
I would agree he should be communicating with investors. (And I should stress I'm not in this deal nor an investor in OPC so I can't say what he's doing.) But he's also not the only owner in that company. It's less important that he is specifically doing it than that a high level executive is (say Ryan Murdock or Brian Murray). If this isn't being done, then yes that does fall on Brandon (and his other co-owners) as the buck stops with them regarding institutional failures.
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Quote from @Andrew Syrios:
Quote from @Chris Seveney:
Quote from @Andrew Syrios:
Quote from @Jim Peret:
Quote from @Mark Lopez:
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
In Brandon's defense, they have a big company and that's his role in it. He can't do everything.
That being said, it does appear they grew too fast and so it unfortunately doesn't surprise me that the results are beginning to drag.
I would respectfully disagree. If you are the owner of a company and have a deal going bad, your role should be to be communicating to investors not selling some training program or selling your other deals. If he was raising institutional money he would get destroyed by advisors if he took that approach.
I would agree he should be communicating with investors. (And I should stress I'm not in this deal nor an investor in OPC so I can't say what he's doing.) But he's also not the only owner in that company. It's less important that he is specifically doing it than that a high level executive is (say Ryan Murdock or Brian Murray). If this isn't being done, then yes that does fall on Brandon (and his other co-owners) as the buck stops with them regarding institutional failures.
Having worked for a billion dollar syndication company in the late 80s who had to go through this in Northern CA. it can be a wild ride.. And for these newer companies I have to guess they simply have not encountered or planned on failing projects so its all new to them on where what why and how to deal with it. As an Aside I follow Ryan Murdock on facebook and he is traveling the US in a RV US and Mexico and has been at least for almost a year it seems so maybe his roll has been taken over by someone else in the ORG.. But one thing is for certain when you syndicate you now have 1000 partners who all have access to the internet for all things good bad or indifferent.
How One handles the tough times is very important to reputation management as we ALL go through tough times if you have been in this business long enough. I also have no investment in ODC.
- Jay Hinrichs
- Podcast Guest on Show #222
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Quote from @Jay Hinrichs:
Quote from @Andrew Syrios:
Quote from @Chris Seveney:
Quote from @Andrew Syrios:
Quote from @Jim Peret:
Quote from @Mark Lopez:
the Sunbelt portfolio performance continues to degrade. Frankly, the ODC group and this fund in particular feels leaderless. Leadership requires focus
Brandon Turner seems to spend more time trying to sell new deals, trips to Hawaii or his “goal setting” program then he spends on the ODC group. I’d like to see some of that goal setting applied to Sunbelt.
In Brandon's defense, they have a big company and that's his role in it. He can't do everything.
That being said, it does appear they grew too fast and so it unfortunately doesn't surprise me that the results are beginning to drag.
I would respectfully disagree. If you are the owner of a company and have a deal going bad, your role should be to be communicating to investors not selling some training program or selling your other deals. If he was raising institutional money he would get destroyed by advisors if he took that approach.
I would agree he should be communicating with investors. (And I should stress I'm not in this deal nor an investor in OPC so I can't say what he's doing.) But he's also not the only owner in that company. It's less important that he is specifically doing it than that a high level executive is (say Ryan Murdock or Brian Murray). If this isn't being done, then yes that does fall on Brandon (and his other co-owners) as the buck stops with them regarding institutional failures.
Having worked for a billion dollar syndication company in the late 80s who had to go through this in Northern CA. it can be a wild ride.. And for these newer companies I have to guess they simply have not encountered or planned on failing projects so its all new to them on where what why and how to deal with it. As an Aside I follow Ryan Murdock on facebook and he is traveling the US in a RV US and Mexico and has been at least for almost a year it seems so maybe his roll has been taken over by someone else in the ORG.. But one thing is for certain when you syndicate you now have 1000 partners who all have access to the internet for all things good bad or indifferent.
How One handles the tough times is very important to reputation management as we ALL go through tough times if you have been in this business long enough. I also have no investment in ODC.
And yeah, I imagine it can be pretty wild. But especially in ODC's case as they have so much going on and have grown so quickly that who's in charge of what exactly isn't always clear and systems/quality control not always well established. From outside, that would be my biggest concern with them. Growing that fast just tends to lead to trouble. Whether I'm right in that and to what degree, I can't say as someone on the outside looking in.