Are syndicators loosing their A$$?

[Engelo Rumora]

What's this I've been reading lately about a pause in distributions and capital calls?

Seems like there is blood in the water?

Maybe a good time to go fishing...

I wouldn't mind being able to pause distributions to our 500 SFH we manage and capital call our investors if/when we need money lol

Thanks 

[Chris Seveney]

Quote from @Engelo Rumora:

Quote from @Chris Seveney:

@Engelo Rumora

Some yes and some no.

A wake up call for many who have only been in real estate for under ten years and realize not only can they lose money, but they can get completely wiped out and those who started with say $100k investment in 2018 that made 2x are finding that not only is the $100k they made gone but also their original $100k and it will take a bit of time to recover….

Thanks mate

But they where only paper gains for investors, right?

Not tangible?

Hard to believe that many didn't underwrite the deals better.

I guess it can be missed but you gotta account for "Black Swan" event's Jamie Dimon style like the current interest rate fiasco.

7 years fixed is no where near as 30 years fixed...

Now the pants are down ehhh 🤷‍♂️

 I would argue this was not a black swan event. There were plenty of red flags just like there were in 2006-2008. 

1. People with zero experience getting in and making money. (this pushes prices up due to competition)

2. Government printing $5T. AGain another reason to push prices up.

Inflation was inevitable, and the investor rush would end.Also those who have been in real estate since COVID acting like they are veterans of the space and claiming any downturn is over and 2024 will be a great year for real estate honestly just look like idiots.