Anyone has invested with Open door capital? How was your experience?

[Hemal Adani]

Hi, I'm curious to learn how your experience has been with Open door capital or something similar. Pros & Cons. Also post if you know something similar.

[Carlos Ptriawan]

Quote from @Lu Kang:

Quote from @Carlos Ptriawan:

one biggest issue with syndicator is during 2021 (low interest rate era) they purchase very low cap asset with floating debt while CPE is increasing, that's suicidal if they know a bit of macroeconomics.

sorry guys....

 Not all syndications purchase properties with variable rates, if anything the group hit hard are those that raised money during 2021 & 2022 at record low rates and pushed quick turnaround value adds. Those who couldn't rehab in time are now stuck with higher rates / rate cap insurance. If you got in but with a fixed rate, you have more runaway but I'm sure rent projections are also coming down. 

In the prior years it seemed all syndicators made money due to cheap debt, now it seems you have to be able to capitalize on somebodies mistake and get in cheap, same as buying a SFH.

, now if specify those who sydincators who did 

 There is one very large syndicator that makes ton of money too when they purchased cap at 2021

[Andrew Hogan]

Focus on the team first, then the markets and deals themselves. @Hemal Adani.

Did you end up pulling the trigger? How's it been?

[Ryan Moore]

Staying away from them and Disrupt Equity going forward.  I'm in 2 syndications and they are sinking ships

[Jay Hinrichs]

Quote from @Jason Allen:

I know of a property here in Columbus, Ohio where offerpad bought the property at 470k. They put 25k in to it. Then sold it for 434k. Not sure how one would make money on this.

they are following the buy high sell low concept of investing. !!

[Chris Seveney]

@Jay Hinrichs

Someone I know just got a capital call today and I saw some posts in other forums that there were atleast 3 other offerings that had paused distributions

I did get a Facebook ad though today for his new fund.

[Jay Hinrichs]

Quote from @Chris Seveney:

@Jay Hinrichs

Someone I know just got a capital call today and I saw some posts in other forums that there were atleast 3 other offerings that had paused distributions

I did get a Facebook ad though today for his new fund.

ya this is a tough one.. But I learned many moons ago when your the face or the captain of the ship U get the glory when it goes good but when things start to go bad its how one handles these times that really dictates.. And then again sometimes its simply out of their control.. made a bad buy had some issues you were not aware of like the Guy talking about soil in Texas I learned that one the hard way not sure that's an issue with that property but its stuff like that.. Also cap calls many times are throwing good money after bad but then they bring in pref equity and dilute U anyway but at least your not adding to the misery.  Sure hope it works out for everyone . I know Brandon was great to us raising money for our home give away we could not have done it without him.

[Chris John]

I'm not on BP as much as I used to be because, honestly, I feel like easy deals have dried up.  I'll leave the real work to professionals, so I'm kinda dormant and waiting for economic situations to cycle through so that I can find easy deals again.

However, I do remember several, several threads on BP a couple of years ago arguing syndications vs. doing the work yourself.  It's sad to see so many of these threads after looking through BP today, but it was totally expected based on the insanely low rates a couple of years ago and realizing how commercial lending works.

It's a bummer, but there's no such thing as passive investing and there's no alternative to digging into a situation and understanding it for yourself.

[Jim Peret]

Quote from @Chris Seveney:

@Devin Ponda

Labrador lending I have invested in.

The others I haven’t because honestly my fund is a competitors to the others/ The mention  the experince of Seveney Mortgage Note Investments. Can you really give an unbiased opinion?

 What is your connection to Labrador Lending?

[Chris Seveney]

@Jim Peret

I know Jamie who runs Labrador lending, we have done a podcast together and have co-managed a fund with one of his other entities but I have no involvement in Labrador lending specifically

[Chris Seveney]

In regards of can I be unbiased yes I can - if you noticed I did not say anything negative at all I was noting the funds that have a good reputation. Also all of these other funds are very different from what we do.

Every fund will have some benefits over the other and some are personal preference on what you want to invest in and how you like how they manage.

For example Jim and Robert from Aspen funds have been around a long time, never heard a negative thing ever said about them.

The same goes for Dave Van Horn at PPR who has also been a major contributor here on BP.

I mentioned these specifically because the people running them have high integrity and what I would caution people on is all the new debt funds popping up that are being used to fund their other ventures that are in trouble. I am not aware of any of the funds I mentioned having to do that.

So reading what I wrote, yes I guess I am bias for people who have been around and doing it with a stellar reputation.

[Brian Jackson]

Wow- seems like all of these are nightmares and more of a headache than passive.

[Jim Peret]

I'm in Open Door Capital's Sunbelt Diversified Portfolio. Been in it 2 years and wish I never invested in it.  Got dividends for 3 months at a rate of 1% annually before they halted them.  Then they wanted to do a capital call but instead will get more funding and dilute our shares. Brandon Turner isn't a man you want to invest with.  He has multiple funds losing money and he's starting new funds and selling coaching services. He should be concerned about his current investors instead of finding new ones. But maybe he's just showing his real character.

[JD Martin]

Quote from @Jim Peret:

I'm in Open Door Capital's Sunbelt Diversified Portfolio. Been in it 2 years and wish I never invested in it.  Got dividends for 3 months at a rate of 1% annually before they halted them.  Then they wanted to do a capital call but instead will get more funding and dilute our shares. Brandon Turner isn't a man you want to invest with.  He has multiple funds losing money and he's starting new funds and selling coaching services. He should be concerned about his current investors instead of finding new ones. But maybe he's just showing his real character.

 That's kind of sad to hear. I suspect these things tend to snowball on top of things, wherein funds start cracking and you have to keep running faster and faster to keep a roof over your head and everyone paid. I know he lives in Hawaii now which I'm sure is a whole lot more expensive than Washington state. 

Do you have any updates on where things sit with their current funds or just the one you're in? I've heard this same story about other funds over there at ODC but nothing lately. 

[Jay Hinrichs]

Quote from @JD Martin:

Quote from @Jim Peret:

I'm in Open Door Capital's Sunbelt Diversified Portfolio. Been in it 2 years and wish I never invested in it.  Got dividends for 3 months at a rate of 1% annually before they halted them.  Then they wanted to do a capital call but instead will get more funding and dilute our shares. Brandon Turner isn't a man you want to invest with.  He has multiple funds losing money and he's starting new funds and selling coaching services. He should be concerned about his current investors instead of finding new ones. But maybe he's just showing his real character.

 That's kind of sad to hear. I suspect these things tend to snowball on top of things, wherein funds start cracking and you have to keep running faster and faster to keep a roof over your head and everyone paid. I know he lives in Hawaii now which I'm sure is a whole lot more expensive than Washington state. 

Do you have any updates on where things sit with their current funds or just the one you're in? I've heard this same story about other funds over there at ODC but nothing lately. 

You know I suspect but don't know for sure.. the Co owners of the fund recruited Brandon for his star power as the original face of BP and podcast host.. And of course it has worked incredibly well on the money raising side.. what I see happening is a very natural progression with someone who has the visibility and popularity as Brandon.. it takes a huge support staff and fulfillment team to create what we are seeing.

[Terry Hall]

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

[Jesse Scroggins]

Quote from @Terry Hall:

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

To be fair annually that would be a 3% return. 

Also distributions don’t start until 6 months after the final property is closed on. So there will be a long lag between when you invest and when distributions start. 6-12 months typically. 

I’m invested in the 3-pack and fund 9.

[Chris John]

Quote from @Jesse Scroggins:

Quote from @Terry Hall:

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

To be fair annually that would be a 3% return. 

@Jesse Scroggins  Is it me or are you off a digit?  3% on 50k would be over $1k.  He mentioned $125.

[Jesse Scroggins]

Quote from @Chris John:

Quote from @Jesse Scroggins:

Quote from @Terry Hall:

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

To be fair annually that would be a 3% return. 

@Jesse Scroggins  Is it me or are you off a digit?  3% on 50k would be over $1k.  He mentioned $125.

I took that as his first and only distribution was 125.

Fund 8 was launched February 2023. The fund likely just started distributions.

Distributions don’t start until 6 months after the last property of the fund is closed on. 

[Justin R.]

Quote from @Terry Hall:

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

 I understand your frustration. You do have to remember a few things here. The first 6 months are acquisitions, removing non paying tenants, and taking over operations/management which is just the beginning of the stabilization process. I too was spoiled by the 8% pref def along with huge exits during the run up economy and ever compressing cap rates. I am optimistic on this team that the exit will still be strong. I do feel they need to be better at communicating assurance in fiscal solvency to their LPs, but at any given moment they could theoretically pause infilling, and pay the pref distributions. The reason they are not, is because this is a value add fund, not a bond.

I am hopeful (as I also have vested interest as an LP) that your 
"Very disappointed" turns into "very happy with results" by the fund exit.

Cheers!

[Basit Siddiqi]

Quote from @Jay Hinrichs:

Quote from @JD Martin:

Quote from @Jim Peret:

I'm in Open Door Capital's Sunbelt Diversified Portfolio. Been in it 2 years and wish I never invested in it.  Got dividends for 3 months at a rate of 1% annually before they halted them.  Then they wanted to do a capital call but instead will get more funding and dilute our shares. Brandon Turner isn't a man you want to invest with.  He has multiple funds losing money and he's starting new funds and selling coaching services. He should be concerned about his current investors instead of finding new ones. But maybe he's just showing his real character.

 That's kind of sad to hear. I suspect these things tend to snowball on top of things, wherein funds start cracking and you have to keep running faster and faster to keep a roof over your head and everyone paid. I know he lives in Hawaii now which I'm sure is a whole lot more expensive than Washington state. 

Do you have any updates on where things sit with their current funds or just the one you're in? I've heard this same story about other funds over there at ODC but nothing lately. 

You know I suspect but don't know for sure.. the Co owners of the fund recruited Brandon for his star power as the original face of BP and podcast host.. And of course it has worked incredibly well on the money raising side.. what I see happening is a very natural progression with someone who has the visibility and popularity as Brandon.. it takes a huge support staff and fulfillment team to create what we are seeing.

I think you are on to something.
I think Brandon's role is not necessarily to find the deal or to manage the deal. I think his role is to raise capital while his other partners.
I think it is the other co-owners, Brian Murray and Ryan Murdock who are more of the day to day. Just my opinion.

Brandon has said it several times how little time he works in a week.

[Jay Hinrichs]

Quote from @Basit Siddiqi:

Quote from @Jay Hinrichs:

Quote from @JD Martin:

Quote from @Jim Peret:

I'm in Open Door Capital's Sunbelt Diversified Portfolio. Been in it 2 years and wish I never invested in it.  Got dividends for 3 months at a rate of 1% annually before they halted them.  Then they wanted to do a capital call but instead will get more funding and dilute our shares. Brandon Turner isn't a man you want to invest with.  He has multiple funds losing money and he's starting new funds and selling coaching services. He should be concerned about his current investors instead of finding new ones. But maybe he's just showing his real character.

 That's kind of sad to hear. I suspect these things tend to snowball on top of things, wherein funds start cracking and you have to keep running faster and faster to keep a roof over your head and everyone paid. I know he lives in Hawaii now which I'm sure is a whole lot more expensive than Washington state. 

Do you have any updates on where things sit with their current funds or just the one you're in? I've heard this same story about other funds over there at ODC but nothing lately. 

You know I suspect but don't know for sure.. the Co owners of the fund recruited Brandon for his star power as the original face of BP and podcast host.. And of course it has worked incredibly well on the money raising side.. what I see happening is a very natural progression with someone who has the visibility and popularity as Brandon.. it takes a huge support staff and fulfillment team to create what we are seeing.

I think you are on to something.
I think Brandon's role is not necessarily to find the deal or to manage the deal. I think his role is to raise capital while his other partners.
I think it is the other co-owners, Brian Murray and Ryan Murdock who are more of the day to day. Just my opinion.

Brandon has said it several times how little time he works in a week.

Ryan who I met once when I was in Maui is a super nice fellow.. But I dont think he is doing much on the day to day now.. he has been boondocking around the US for the last year or so I follow him on facebook.. Of course I dont know if he taps into satellite internet and is still involved but he has had a ton of incredible adventures the last year from what I saw.  And I think he did make a post that he is moving back to the mainland and it sounded like maybe taking  a different role in ODC  Again hard to glean things from facebook no one really gives any details on that site so all just wag's on my part.

[Terry Hall]

Quote from @Chris John:

Quote from @Jesse Scroggins:

Quote from @Terry Hall:

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

To be fair annually that would be a 3% return. 

@Jesse Scroggins  Is it me or are you off a digit?  3% on 50k would be over $1k.  He mentioned $125.

 I am not a digit off; I received $125.00. One hundred and twenty-five.

[Jay Hinrichs]

Quote from @Terry Hall:

Quote from @Chris John:

Quote from @Jesse Scroggins:

Quote from @Terry Hall:

I am in Fund 8. First year projection was 2-4%. I invested $50k; I received a whopping $125.very disappointed; I could have easily bought another rental or invested in a mutual fund and done so much better.

To be fair annually that would be a 3% return. 

@Jesse Scroggins  Is it me or are you off a digit?  3% on 50k would be over $1k.  He mentioned $125.

 I am not a digit off; I received $125.00. One hundred and twenty-five.

well I guess it better than a 125.00 capital call..  did you have a cap call and or did your deal bring in pref equity and there by dilute you ???

[V.G Jason]

Quote from @Jay Hinrichs:

Quote from @Basit Siddiqi:

Quote from @Jay Hinrichs:

Quote from @JD Martin:

Quote from @Jim Peret:

I'm in Open Door Capital's Sunbelt Diversified Portfolio. Been in it 2 years and wish I never invested in it.  Got dividends for 3 months at a rate of 1% annually before they halted them.  Then they wanted to do a capital call but instead will get more funding and dilute our shares. Brandon Turner isn't a man you want to invest with.  He has multiple funds losing money and he's starting new funds and selling coaching services. He should be concerned about his current investors instead of finding new ones. But maybe he's just showing his real character.

 That's kind of sad to hear. I suspect these things tend to snowball on top of things, wherein funds start cracking and you have to keep running faster and faster to keep a roof over your head and everyone paid. I know he lives in Hawaii now which I'm sure is a whole lot more expensive than Washington state. 

Do you have any updates on where things sit with their current funds or just the one you're in? I've heard this same story about other funds over there at ODC but nothing lately. 

You know I suspect but don't know for sure.. the Co owners of the fund recruited Brandon for his star power as the original face of BP and podcast host.. And of course it has worked incredibly well on the money raising side.. what I see happening is a very natural progression with someone who has the visibility and popularity as Brandon.. it takes a huge support staff and fulfillment team to create what we are seeing.

I think you are on to something.
I think Brandon's role is not necessarily to find the deal or to manage the deal. I think his role is to raise capital while his other partners.
I think it is the other co-owners, Brian Murray and Ryan Murdock who are more of the day to day. Just my opinion.

Brandon has said it several times how little time he works in a week.

Ryan who I met once when I was in Maui is a super nice fellow.. But I dont think he is doing much on the day to day now.. he has been boondocking around the US for the last year or so I follow him on facebook.. Of course I dont know if he taps into satellite internet and is still involved but he has had a ton of incredible adventures the last year from what I saw.  And I think he did make a post that he is moving back to the mainland and it sounded like maybe taking  a different role in ODC  Again hard to glean things from facebook no one really gives any details on that site so all just wag's on my part.

 He's enjoying the fruit of his **** labor. Going to Hawaii, traveling the country off of all the hardworking people that "invested" into his syndication. Everyone's gotta be all cute & nice when money is tight. They are all coming back to the mainland because the chickens are coming home to roost, and they all know it.

The fun of free money pumping everyone's ambitions and dreams is dwindling. This the charlatans last chance to prey on the newly accredited investors, blind, and dumbos. Give it your best pitch, cause we all know no strike or strike-- you're going to face the reckoning.

Fast solutions have slow problems. ODC will realize the reckoning, it's not a matter of if just when.

[Justin R.]

As an investor with ODC, and someone who has spoke with Brandon directly a handful of times about ODC, I can tell you that he does participate in the decision making process' at the company. He has placed people in key positions that are really good at what they specialize in, but Brandon has remained the leader of the company. 

I also feel they have grown too quick for my liking, but I am confident Brandon and the team are great sponsors, are ethical, and are looking out for their LPs.