Norada Capital Management suspending payments

[Paula Impala]

I invested in Norada Capital Management and was coming here to connect with others who have invested. Did not receive my payment from Norada this month (June) and just received the following notification in my email.

Any thoughts or recommendations from fellow investors.  Thank you in advance for any advice or insight.

Dear Valued Investor,

I hope you are well. As a lender (aka “Maker”) to Norada, you are a valued member of the Norada family.
The purpose of this correspondence is to provide you with an update on the repayment under the terms of the promissory note (“Note”) as an obligation of Norada Capital Management, LLC (“Norada”).
As with all businesses, Norada is subject to market factors that could impact its ability to make payments. Due to current market conditions and unforeseen financial challenges, we have decided to temporarily suspend distribution payments. This decision was not made lightly and comes after thorough deliberation and analysis of our current financial position.
This requires us to exercise our right to convert your Note and issue equity (aka membership interests) in Norada. You will recall that your Note allows Norada to convert the outstanding balance owed into equity and that it can redeem that equity in the future by repayment of the Note principal in full. There is nothing required by you related to your Note being converted. It happens automatically upon notice being sent.
As such, this email will provide you notice that Norada has chosen to exercise its right under the Note §6 to issue equity to you in Norada. Your equity is valued at the unpaid face value of the Note plus any accrued but unpaid interest. We expect to be in a position to redeem your interests in short order, and we will keep you posted, as always, on any developments in this regard.

We understand the importance of distributions to our investors and recognize the impact this decision may have on your financial planning. Please be assured that this suspension is temporary. We are committed to resuming regular distributions as soon as our financial situation stabilizes and improves.

Our primary goal is to ensure the long-term stability and sustainability of our business. By temporarily halting distributions, we can preserve capital, manage our resources more effectively, and invest in key areas that will drive future growth and profitability.

In the interim, we are taking strategic steps to strengthen our financial health, including cost-reduction measures, revenue-generating initiatives, and debt restructuring options. Our management team is dedicated to navigating through these challenges and emerging stronger.
We greatly appreciate your understanding and patience during this time. We remain committed to transparency and will keep you informed of any significant developments. If you have any questions or need further clarification, please feel free to contact me directly. (I will do my best to reply to your email in a timely manner.)
Thank you for your continued trust and support.
Sincerely,

Marco SantarelliFounder & CEONorada Capital Management

[Engelo Rumora]

Quote from @Dave Hagen:

Quote from @Dewayne C.:

Thank you I owe on most of those 32 properties. I do have positive cash flow. But it will take me a good while to get back my wife’s money. I’m 72. Not a lot of time left for me to catch up. 

Hey, hey, hey... Enough negativity on this thread. ;)

I plan on living to at least 100, and making my ex totally jealous.

Actually, I'll just be happy if she continues to leave me alone. lol

Hopefully you have many years ahead, and lesson learned, more profitable.

Don't make yourself sick with misery. What's past is past. Good luck in the future.

55 years is enough for me lol

And agreed, learn from mistakes made, don't repeat and move on.

Personally, I never chase lost money and just take it on the chin and take the high road.

Time and energy is better spent on growing bigger, better, smarter.

Than on never ending, emotionally dragging lawsuits.

Just my opinion 

[Jason Chmel]

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

[Jay Hinrichs]

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

[Michael P.]

Conversion to equity is permanent ... but my understanding was eventually he'd buy out your equity one day.

[James Hamling]

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

.... 17 lawsuits later as the file bankruptcy and dissolution sending investors notice of such due to "un manageable hemorrhaging of capital to fund legal resources".... and BP post's shift to what legal recourses does one have for a dissolved/bankrupt unsecured note investment converted to equity.... 

Yyyyyuup.... Don't need the magic 8-ball to see that one a-coming. 

[Jay Hinrichs]

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

.... 17 lawsuits later as the file bankruptcy and dissolution sending investors notice of such due to "un manageable hemorrhaging of capital to fund legal resources".... and BP post's shift to what legal recourses does one have for a dissolved/bankrupt unsecured note investment converted to equity.... 

Yyyyyuup.... Don't need the magic 8-ball to see that one a-coming. 

James I have been flamed pretty bad on this thread on the presumption that I am defending the Sponsor when in fact all I am trying to do is point out to investors in this transaction that actually want to get their money back.. that taking down the sponsor for sure is not going to do that as you note a BK would be the next thing coming and if company has no cash or assets at the time it just gets dissolved and there goes the equity.. Now granted that outcome is a very real possibility but going after the sponsor right this minute all but assures that outcome . And well the Sponsor has had a successful RE business for going on two decades so I have to think there is some hope for monetary recovery.. On the flip side some of the Investors like David K who may have invested in this deal at least he says he did.. Their mission may be to put the company out of business and the Sponsor be banned from the industry or criminal charges.. So you have that approach as well.

So in my mind at this point do these investors want to recoup some money or just nuke the Sponsor and be satisfied that they took them down.

[James Hamling]

Quote from @Jay Hinrichs:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

.... 17 lawsuits later as the file bankruptcy and dissolution sending investors notice of such due to "un manageable hemorrhaging of capital to fund legal resources".... and BP post's shift to what legal recourses does one have for a dissolved/bankrupt unsecured note investment converted to equity.... 

Yyyyyuup.... Don't need the magic 8-ball to see that one a-coming. 

James I have been flamed pretty bad on this thread on the presumption that I am defending the Sponsor when in fact all I am trying to do is point out to investors in this transaction that actually want to get their money back.. that taking down the sponsor for sure is not going to do that as you note a BK would be the next thing coming and if company has no cash or assets at the time it just gets dissolved and there goes the equity.. Now granted that outcome is a very real possibility but going after the sponsor right this minute all but assures that outcome . And well the Sponsor has had a successful RE business for going on two decades so I have to think there is some hope for monetary recovery.. On the flip side some of the Investors like David K who may have invested in this deal at least he says he did.. Their mission may be to put the company out of business and the Sponsor be banned from the industry or criminal charges.. So you have that approach as well.

So in my mind at this point do these investors want to recoup some money or just nuke the Sponsor and be satisfied that they took them down.

I follow ya Jay, 100%, and I hope others are starting to get it that your really trying to help THEM not this jicky-jack operation. 

Once they were converted to equity *POW* like the wave of a magic wand they (the investors) are Marco and Marco is them.     People, remember, what is equity? You ARE the company now, scorched earth on the company is scorched earth on yourselves! 

It's childish to think a person of the size and who's been around as long as they have didn't have all the legal in the world to fully and TOTALLY segregate entities is CRAZY!    People, I am an ant in comparison to that elephant and even I have that kind of structure where I'd sit back and giggle as someone tried to burn through one of my s-corps attempting to connect another, not-gonna-happen. 

Ya know, I wonder how many reached out airing how upset they are with the situation, there strong desire for a different outcome, and asking how they can help to make that other outcome a reality???? ya, offering assistance.    Imagine if the investors approached it as a work-shop to co-op networks, ideas, resources to change direction of things.... 

I am betting 0. 

because anger and blame is easy. Solutions, being a resolution-engineer is hard. 

But that really is there BEST outcome potential. If the company leadership is failing step-up because being an equity partner means it's your company now too so who cares who or how the idiot captains got it on the rocks let's focus on getting it the hell off and sailing before it's ripped apart and sinks to the ocean floor, right. And than later focus on who your gonna hang from the main sail (figuratively speaking of course), lol. 

It's about saving yourselves people. 

I think the only intelligent alternative to the above is if they organize together, get attorney, and take legal actions to press that they are now majority share holders and execute a take-over.     Take control, right the ship best as possible and then effect what liquidating event is best possible to recoup as much capital as possible.     

And that would also hold a vengeance effect because holly cow that happening to a sponsor, wowzers. And document the hell out of everything, hell make a YT page dedicated to it all like a docu-movie. Make it famous. There ya go, that's productive vengeance. 

But to just tear it all down on top of self.... Sorry i have no pity for that kind of self-inflicted stupidity. That's just a temper tantrum. Nobody remembers the just start, only the infantile tirade and the destruction it wrought. 

[Chris Seveney]

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

 I think one thing to consider and remember - THIS IS NOT A REAL ESTATE FUND - so it is not uncommon for sponsors who invest in ecommerce and masterminds to raise equity to either grow the business or assist in getting out of a hole. Based on the webinar - it sounded like its a cashflow problem right now and not an equity problem (which someone I spoke with noted it appears on the balance sheet if correct, there is equity) - issue is of course how to turn the equity into cash 

Comparing it to real estate, you have a negative cash flowing property but owe $500k when its worth $1M and you need cash - how do you get it to resolve the cash flow issues? you sell or restructure and possibly bring on an equity partner. 

This is not to say there are not a lot of red flags that would have me concerned, but there are also signs in the other direction - and at this point everyone is just guessing and taking information and manipulating to fit their narrative.

PS: Those that say I work or associated with Marco just goes to show how bad people are at due diligence. 

[Patti Robertson]

In case you are not aware, Marco filed a Chapter 7 Bankruptcy and wiped out over $5K of debt.  Here is a link to a copy of the filing that includes the creditors that were wiped out.  Marco's Bankruptcy Filing - 2008

[Jay Hinrichs]

Quote from @Patti Robertson:

In case you are not aware, Marco filed a Chapter 7 Bankruptcy and wiped out over $5K of debt.  Here is a link to a copy of the filing that includes the creditors that were wiped out.  Marco's Bankruptcy Filing - 2008

well to be fair Patti I would say 50% of those fully engaged in real estate filed bk from 07 to 2010.. I knew quite a few builder developer high flying RE agents that had leveraged themselves to their eyeballs.. this is not shocking or new.

[Jay Hinrichs]

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

.... 17 lawsuits later as the file bankruptcy and dissolution sending investors notice of such due to "un manageable hemorrhaging of capital to fund legal resources".... and BP post's shift to what legal recourses does one have for a dissolved/bankrupt unsecured note investment converted to equity.... 

Yyyyyuup.... Don't need the magic 8-ball to see that one a-coming. 

James I have been flamed pretty bad on this thread on the presumption that I am defending the Sponsor when in fact all I am trying to do is point out to investors in this transaction that actually want to get their money back.. that taking down the sponsor for sure is not going to do that as you note a BK would be the next thing coming and if company has no cash or assets at the time it just gets dissolved and there goes the equity.. Now granted that outcome is a very real possibility but going after the sponsor right this minute all but assures that outcome . And well the Sponsor has had a successful RE business for going on two decades so I have to think there is some hope for monetary recovery.. On the flip side some of the Investors like David K who may have invested in this deal at least he says he did.. Their mission may be to put the company out of business and the Sponsor be banned from the industry or criminal charges.. So you have that approach as well.

So in my mind at this point do these investors want to recoup some money or just nuke the Sponsor and be satisfied that they took them down.

I follow ya Jay, 100%, and I hope others are starting to get it that your really trying to help THEM not this jicky-jack operation. 

Once they were converted to equity *POW* like the wave of a magic wand they (the investors) are Marco and Marco is them.     People, remember, what is equity? You ARE the company now, scorched earth on the company is scorched earth on yourselves! 

It's childish to think a person of the size and who's been around as long as they have didn't have all the legal in the world to fully and TOTALLY segregate entities is CRAZY!    People, I am an ant in comparison to that elephant and even I have that kind of structure where I'd sit back and giggle as someone tried to burn through one of my s-corps attempting to connect another, not-gonna-happen. 

Ya know, I wonder how many reached out airing how upset they are with the situation, there strong desire for a different outcome, and asking how they can help to make that other outcome a reality???? ya, offering assistance.    Imagine if the investors approached it as a work-shop to co-op networks, ideas, resources to change direction of things.... 

I am betting 0. 

because anger and blame is easy. Solutions, being a resolution-engineer is hard. 

But that really is there BEST outcome potential. If the company leadership is failing step-up because being an equity partner means it's your company now too so who cares who or how the idiot captains got it on the rocks let's focus on getting it the hell off and sailing before it's ripped apart and sinks to the ocean floor, right. And than later focus on who your gonna hang from the main sail (figuratively speaking of course), lol. 

It's about saving yourselves people. 

I think the only intelligent alternative to the above is if they organize together, get attorney, and take legal actions to press that they are now majority share holders and execute a take-over.     Take control, right the ship best as possible and then effect what liquidating event is best possible to recoup as much capital as possible.     

And that would also hold a vengeance effect because holly cow that happening to a sponsor, wowzers. And document the hell out of everything, hell make a YT page dedicated to it all like a docu-movie. Make it famous. There ya go, that's productive vengeance. 

But to just tear it all down on top of self.... Sorry i have no pity for that kind of self-inflicted stupidity. That's just a temper tantrum. Nobody remembers the just start, only the infantile tirade and the destruction it wrought. 

James I had a front row seat and lived through a failed syndication ( I was a broker bringing the company land development deals in the late 80s) This company had a few syndications go bad like we are seeing today with the popular syndicators that have been on BP.. U know not paying interest needing to do capital calls  bringing on pref equity and diluting the investors.. 

There was one guy a Dr. Morgasi who went on a rampage he also had a law degree but never practices ( those are dangerous folks)  Anyway he rallied the investor got another higher powered lawyer to come in and they did successfully kick the GP out of the deals and took them over.. Well this action required big time cash calls that Morgasi orchestrated. He  painted a picture of them riding in and saving the day.. Bottom line they were not real estate operators and for sure were not developers he raised all this cash the attorney got HUGE fee's and well after all the bashing and legal wrangling.. They took over.. they made it about 20 months another round of cash calls.. then they could not run the individual projects ( there were over 75 of them) and boom one by one they went into BK and were liquidated.. Not only did the investors lose their equity they lost their cash calls and all the stress that played out over the 3 or 4 years this went on. Billion dollar company poof  granted they put the GP completely out of bizz.  So in my mind cooler heads would have let the GP work out of it.. Just like we see with ODC Ashcroft AHP and others who need time to work out of the deals.. So again In my opinion this is so new and fresh I like the idea of maybe getting a committee together to one have  or two voices to deal with the sponsor and give it a minute .. if it does not right itself over the next year what difference does it make if your investment is lost in 24 or 25 and just maybe repayment and recapitalization will occur and over the course of time investors start to get their principal back..

OR like we are seeing investors start their adversarial pursuits.. SEC steps in and shuts it down and freezes everything and forces liquidation and the investors are wiped out.. All the while paying their attorneys furthering the cash loss..

However we do circle back to the investment in the first place and it appears the investors did not understand the risk .. And now presented with the risk scenario they go into attack mode.

[James Hamling]

Quote from @Jay Hinrichs:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

.... 17 lawsuits later as the file bankruptcy and dissolution sending investors notice of such due to "un manageable hemorrhaging of capital to fund legal resources".... and BP post's shift to what legal recourses does one have for a dissolved/bankrupt unsecured note investment converted to equity.... 

Yyyyyuup.... Don't need the magic 8-ball to see that one a-coming. 

James I have been flamed pretty bad on this thread on the presumption that I am defending the Sponsor when in fact all I am trying to do is point out to investors in this transaction that actually want to get their money back.. that taking down the sponsor for sure is not going to do that as you note a BK would be the next thing coming and if company has no cash or assets at the time it just gets dissolved and there goes the equity.. Now granted that outcome is a very real possibility but going after the sponsor right this minute all but assures that outcome . And well the Sponsor has had a successful RE business for going on two decades so I have to think there is some hope for monetary recovery.. On the flip side some of the Investors like David K who may have invested in this deal at least he says he did.. Their mission may be to put the company out of business and the Sponsor be banned from the industry or criminal charges.. So you have that approach as well.

So in my mind at this point do these investors want to recoup some money or just nuke the Sponsor and be satisfied that they took them down.

I follow ya Jay, 100%, and I hope others are starting to get it that your really trying to help THEM not this jicky-jack operation. 

Once they were converted to equity *POW* like the wave of a magic wand they (the investors) are Marco and Marco is them.     People, remember, what is equity? You ARE the company now, scorched earth on the company is scorched earth on yourselves! 

It's childish to think a person of the size and who's been around as long as they have didn't have all the legal in the world to fully and TOTALLY segregate entities is CRAZY!    People, I am an ant in comparison to that elephant and even I have that kind of structure where I'd sit back and giggle as someone tried to burn through one of my s-corps attempting to connect another, not-gonna-happen. 

Ya know, I wonder how many reached out airing how upset they are with the situation, there strong desire for a different outcome, and asking how they can help to make that other outcome a reality???? ya, offering assistance.    Imagine if the investors approached it as a work-shop to co-op networks, ideas, resources to change direction of things.... 

I am betting 0. 

because anger and blame is easy. Solutions, being a resolution-engineer is hard. 

But that really is there BEST outcome potential. If the company leadership is failing step-up because being an equity partner means it's your company now too so who cares who or how the idiot captains got it on the rocks let's focus on getting it the hell off and sailing before it's ripped apart and sinks to the ocean floor, right. And than later focus on who your gonna hang from the main sail (figuratively speaking of course), lol. 

It's about saving yourselves people. 

I think the only intelligent alternative to the above is if they organize together, get attorney, and take legal actions to press that they are now majority share holders and execute a take-over.     Take control, right the ship best as possible and then effect what liquidating event is best possible to recoup as much capital as possible.     

And that would also hold a vengeance effect because holly cow that happening to a sponsor, wowzers. And document the hell out of everything, hell make a YT page dedicated to it all like a docu-movie. Make it famous. There ya go, that's productive vengeance. 

But to just tear it all down on top of self.... Sorry i have no pity for that kind of self-inflicted stupidity. That's just a temper tantrum. Nobody remembers the just start, only the infantile tirade and the destruction it wrought. 

James I had a front row seat and lived through a failed syndication ( I was a broker bringing the company land development deals in the late 80s) This company had a few syndications go bad like we are seeing today with the popular syndicators that have been on BP.. U know not paying interest needing to do capital calls  bringing on pref equity and diluting the investors.. 

There was one guy a Dr. Morgasi who went on a rampage he also had a law degree but never practices ( those are dangerous folks)  Anyway he rallied the investor got another higher powered lawyer to come in and they did successfully kick the GP out of the deals and took them over.. Well this action required big time cash calls that Morgasi orchestrated. He  painted a picture of them riding in and saving the day.. Bottom line they were not real estate operators and for sure were not developers he raised all this cash the attorney got HUGE fee's and well after all the bashing and legal wrangling.. They took over.. they made it about 20 months another round of cash calls.. then they could not run the individual projects ( there were over 75 of them) and boom one by one they went into BK and were liquidated.. Not only did the investors lose their equity they lost their cash calls and all the stress that played out over the 3 or 4 years this went on. Billion dollar company poof  granted they put the GP completely out of bizz.  So in my mind cooler heads would have let the GP work out of it.. Just like we see with ODC Ashcroft AHP and others who need time to work out of the deals.. So again In my opinion this is so new and fresh I like the idea of maybe getting a committee together to one have  or two voices to deal with the sponsor and give it a minute .. if it does not right itself over the next year what difference does it make if your investment is lost in 24 or 25 and just maybe repayment and recapitalization will occur and over the course of time investors start to get their principal back..

OR like we are seeing investors start their adversarial pursuits.. SEC steps in and shuts it down and freezes everything and forces liquidation and the investors are wiped out.. All the while paying their attorneys furthering the cash loss..

However we do circle back to the investment in the first place and it appears the investors did not understand the risk .. And now presented with the risk scenario they go into attack mode.

Yeah, back to start, it looks to me as Marco is pulling triggers that were always there, going to plan Y, Z etc... And because things are not going to plan, which is also a reason for the press to raise capital as some have painted as something nefarious which makes no sense to me because if things are going from bad to worse raising additional capital is exactly what one would do to try and stave off defaulting on creditors.     I think some are with idea that there just sitting on a mountain of $$$$ and happy to do these things.... Nobody flirts with idea of SEC up tail-pipe for the fun of it. 

And all arguments on going nuclear I have read have some fantasy connected that someone else will magically bring there capital back if do so, think other unconnected companies will get liquidated to payoff on this one.... 

And arguing with SEC saying "oh yeah, I knew the rules and I illegally entered this investment, I shouldn't have been let in sooooo I get a gold star and all my $ back right?" is.... well it's idiotic, no 2 ways around that reality, it's dumb squared. I don't understand how any think stating they were party to fraud somehow empowers them to a reward. 

I agree, exercising patience and being a force for positive is the only intelligent self-serving actions I see here. 

Thing is, how long was this investment around? From all I have heard, a fairly substantial time, and in that not a single complaint or accusation. Only when the $-train stopped did every accusation of every kind come out. That's not a good look for the investors, looks like an argument that they simply want high-risk investment returns with 0-risk. 

As i posted before here, I have yet to hear 1 single person say "oh dang it, I knew this was high risk but man-alive I was hoping it would work out" or any iteration of that, no not a 1. It's all about how they are OWED this that or the other.... No degree is needed to comprehend the word "RISK". 

It reminds of the people who go into the casino, and melt down at the table when bust on there last $ and start screaming at the dealer that they "should have" won that hand, gotten so-n-so's card blah-blah-blah....     In my poker days I saw some real interesting table-side melt-downs. 

Gamblers remorse.... 

[Henry Clark]

Got to ask.  
What were the Broadway plays in the syndication?  

On the crypto what insider info or technique as an investment strategy was marketed.  Versus someone just putting money into crypto and day trading?     

What was the mastermind group?

What were the defunct brand names?  If one was the “Oh Henry” candy bar brand I will buy it. Or Delaware Punch.  

[Paul Azad]

I doubt that the vast majority of the investors in Norada Capital Management's unsecured promissory notes were intending to invest in an illegal Ponzi scheme. But that is precisely what the company appears to be, or to be more precise, a feeder fund to the larger Ponzi scheme, which was Retail E commerce Ventures run by Tai Lopez and Alex Mehr, who, if you go to Norada Capital Management's website this very moment under team, is still listed as the number two advisor underneath Marco Santarelli. Mr. Alex Mehr, the owner and cofounder of REV which bilked investors out of $270,000,000 just a year and a half ago and discontinued distributions in November of 2022 and is now under SEC investigation and multiple lawsuits, and was paying 25% promissory notes with a business plan of online retail from a dozen bankrupt old brands despite having little to nothing listed for sale on the websites (the same dozen listed in same order on Norada site) to Norada Capital Management which then paid out 12 to 16% promissory notes to the unsuspecting investors here on BP above and in other threads. REV made 150mil in 2021, 60 mil in 2022, but lost 60mil in 2022 in expenses and had 200mil in debt before folding in 11/22. (it was never a legit business nor any intention of being one, think AMWAY/Herbalife) Norada still fundraising this minute on website and Marco pitching his promissory notes just 4 weeks ago on a webinar saying only 75% E-commerce, but the growth is in Off Broadway musicals....WTF!!!. All Ponzis keep running until they run out of investor inflows, never before. 

It is not whining for BP members to complain about a complete loss of capital and a former BP Darling Marco the turn-key real estate expert from going RadioShack-silent for a month. It is the least they can do to warn other potential investors who Marco is literally still apparently preying upon this very moment. 

Or maybe I'm way off base and the modern day Einsteins of Marco/Alex, and Tai were going to defeat low-cost on-line shops like Amazon/Wal-Mart and TEMU. Remember, those dozen bankrupt companies had already failed online once, hence they went bankrupt already. Their intentions seem clear ad Incipio.

[Logan Winn]

Key Points from the Email

1. Temporary Suspension: Norada has temporarily suspended distribution payments due to financial challenges.

2. Conversion to Equity: Your promissory note will be converted into equity in Norada, which will be redeemed once the financial situation improves.

3. Strategic Measures: Norada is taking steps to strengthen its financial health, including cost-reduction measures, revenue-generating initiatives, and debt restructuring.

4. Commitment to Transparency: The company promises to keep investors informed about any significant developments.

Recommendations and Insights

1. Review Your Investment Agreement: Carefully review the terms of your promissory note and any related agreements to understand your rights and the company's obligations. Pay particular attention to the sections regarding the conversion of notes to equity and the conditions under which this can occur.

2. Contact Norada for Clarification: Reach out to Norada Capital Management for any specific questions or concerns you have. Marco Santarelli, the CEO, has indicated a willingness to respond to investor inquiries.

3. Stay Informed: Keep an eye on communications from Norada and any updates they provide regarding their financial situation and the timeline for resuming distributions.

4. Consult a Financial Advisor: Given the complexities involved, it may be beneficial to consult with a financial advisor who can provide personalized advice based on your investment portfolio and financial goals.

5. Connect with Other Investors: Engaging with other investors, as you are doing, can provide additional insights and support. Platforms like BiggerPockets have discussions on this topic where investors share their experiences and advice.

Additional Considerations

- Market Conditions: Understand that market conditions can significantly impact investment returns, especially in real estate. The current financial challenges faced by Norada may be reflective of broader market trends.

- Long-term Perspective: While the suspension of payments is concerning, Norada's decision to convert notes to equity and its strategic measures to strengthen financial health may indicate a focus on long-term stability and growth.

The suspension of payments by Norada Capital Management is undoubtedly concerning, but the company's communication suggests a proactive approach to managing its financial challenges. By staying informed, seeking clarification, and consulting with financial professionals, you can better navigate this situation and make informed decisions about your investment. If you have any further questions or need more detailed advice, feel free to reach out!

[James Wise]

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

[Engelo Rumora]

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

It’s getting ugly in the private Facebook group. Lawsuits flying left and right.

It’s a shame it got to this and I hope it all works out for all involved 🙏

[Engelo Rumora]

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @James Hamling:

Quote from @Jay Hinrichs:

Quote from @Jason Chmel:

I heard back from Marco.  I asked if the equity shared will be converted back to notes, or if that part of it was permanent (which begs the question how do we get our money back?).  I also asked if there was accounting I could see that shows my share of the equity as a whole?  Who is to say my dollar equals how many equity shares?  I asked about 3rd party accounting.

His response was it'll take 6-8 weeks at least for them to come up with a plan but the conversion to shares is permanent.  Nothing on accounting or # of shares.

Today I looked on the website and the "Get started" button takes you to a "Coming Soon!  Our New Equity Based Offering!"  That's no good

Well if you can keep the other note holders from going Nuclear on Marco maybe you guys can recoup over time.. one thing is for certain though if there is no Marco going forward then there is NO chance at recovery.. So you all have to weigh your options . 

.... 17 lawsuits later as the file bankruptcy and dissolution sending investors notice of such due to "un manageable hemorrhaging of capital to fund legal resources".... and BP post's shift to what legal recourses does one have for a dissolved/bankrupt unsecured note investment converted to equity.... 

Yyyyyuup.... Don't need the magic 8-ball to see that one a-coming. 

James I have been flamed pretty bad on this thread on the presumption that I am defending the Sponsor when in fact all I am trying to do is point out to investors in this transaction that actually want to get their money back.. that taking down the sponsor for sure is not going to do that as you note a BK would be the next thing coming and if company has no cash or assets at the time it just gets dissolved and there goes the equity.. Now granted that outcome is a very real possibility but going after the sponsor right this minute all but assures that outcome . And well the Sponsor has had a successful RE business for going on two decades so I have to think there is some hope for monetary recovery.. On the flip side some of the Investors like David K who may have invested in this deal at least he says he did.. Their mission may be to put the company out of business and the Sponsor be banned from the industry or criminal charges.. So you have that approach as well.

So in my mind at this point do these investors want to recoup some money or just nuke the Sponsor and be satisfied that they took them down.

I follow ya Jay, 100%, and I hope others are starting to get it that your really trying to help THEM not this jicky-jack operation. 

Once they were converted to equity *POW* like the wave of a magic wand they (the investors) are Marco and Marco is them.     People, remember, what is equity? You ARE the company now, scorched earth on the company is scorched earth on yourselves! 

It's childish to think a person of the size and who's been around as long as they have didn't have all the legal in the world to fully and TOTALLY segregate entities is CRAZY!    People, I am an ant in comparison to that elephant and even I have that kind of structure where I'd sit back and giggle as someone tried to burn through one of my s-corps attempting to connect another, not-gonna-happen. 

Ya know, I wonder how many reached out airing how upset they are with the situation, there strong desire for a different outcome, and asking how they can help to make that other outcome a reality???? ya, offering assistance.    Imagine if the investors approached it as a work-shop to co-op networks, ideas, resources to change direction of things.... 

I am betting 0. 

because anger and blame is easy. Solutions, being a resolution-engineer is hard. 

But that really is there BEST outcome potential. If the company leadership is failing step-up because being an equity partner means it's your company now too so who cares who or how the idiot captains got it on the rocks let's focus on getting it the hell off and sailing before it's ripped apart and sinks to the ocean floor, right. And than later focus on who your gonna hang from the main sail (figuratively speaking of course), lol. 

It's about saving yourselves people. 

I think the only intelligent alternative to the above is if they organize together, get attorney, and take legal actions to press that they are now majority share holders and execute a take-over.     Take control, right the ship best as possible and then effect what liquidating event is best possible to recoup as much capital as possible.     

And that would also hold a vengeance effect because holly cow that happening to a sponsor, wowzers. And document the hell out of everything, hell make a YT page dedicated to it all like a docu-movie. Make it famous. There ya go, that's productive vengeance. 

But to just tear it all down on top of self.... Sorry i have no pity for that kind of self-inflicted stupidity. That's just a temper tantrum. Nobody remembers the just start, only the infantile tirade and the destruction it wrought. 

Jay told me many years ago when I lost his money on a deal “A man shows his true colors in times of adversity and not triumph”

I agree with Jay on his opinion here as he doesn’t have a dog in the fight.

We both met Marco and he always seemed like a decent fellow.

Time will reveal all but nuking the fella doesn’t get anyone their cheese back.

Just my opinion 

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

[James Wise]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

 well going to Nuk on them sure wont achieve the return of investment all but assures a wipe out. 

[James Wise]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

 well going to Nuk on them sure wont achieve the return of investment all but assures a wipe out. 

 Based on what I've seen in this thread and a very very limited look at these investments and the websites behind them, I'd say these investors have a better shot at getting a date with Margot Robbie than getting their money back.

[Kevin Hintz]

Quote from @Paula Impala:

I invested in Norada Capital Management and was coming here to connect with others who have invested. Did not receive my payment from Norada this month (June) and just received the following notification in my email.

Any thoughts or recommendations from fellow investors.  Thank you in advance for any advice or insight.

Have you reviewed your investment agreement to understand the terms and conditions? It might be a good idea to consult a financial advisor or attorney to get a better sense of your options.

Dear Valued Investor,

I hope you are well. As a lender (aka “Maker”) to Norada, you are a valued member of the Norada family.
The purpose of this correspondence is to provide you with an update on the repayment under the terms of the promissory note (“Note”) as an obligation of Norada Capital Management, LLC (“Norada”).
As with all businesses, Norada is subject to market factors that could impact its ability to make payments. Due to current market conditions and unforeseen financial challenges, we have decided to temporarily suspend distribution payments. This decision was not made lightly and comes after thorough deliberation and analysis of our current financial position.
This requires us to exercise our right to convert your Note and issue equity (aka membership interests) in Norada. You will recall that your Note allows Norada to convert the outstanding balance owed into equity and that it can redeem that equity in the future by repayment of the Note principal in full. There is nothing required by you related to your Note being converted. It happens automatically upon notice being sent.
As such, this email will provide you notice that Norada has chosen to exercise its right under the Note §6 to issue equity to you in Norada. Your equity is valued at the unpaid face value of the Note plus any accrued but unpaid interest. We expect to be in a position to redeem your interests in short order, and we will keep you posted, as always, on any developments in this regard.

We understand the importance of distributions to our investors and recognize the impact this decision may have on your financial planning. Please be assured that this suspension is temporary. We are committed to resuming regular distributions as soon as our financial situation stabilizes and improves.

Our primary goal is to ensure the long-term stability and sustainability of our business. By temporarily halting distributions, we can preserve capital, manage our resources more effectively, and invest in key areas that will drive future growth and profitability.

In the interim, we are taking strategic steps to strengthen our financial health, including cost-reduction measures, revenue-generating initiatives, and debt restructuring options. Our management team is dedicated to navigating through these challenges and emerging stronger.
We greatly appreciate your understanding and patience during this time. We remain committed to transparency and will keep you informed of any significant developments. If you have any questions or need further clarification, please feel free to contact me directly. (I will do my best to reply to your email in a timely manner.)
Thank you for your continued trust and support.
Sincerely,

Marco SantarelliFounder & CEONorada Capital Management

[Michael P.]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

 well going to Nuk on them sure wont achieve the return of investment all but assures a wipe out. 

 Based on what I've seen in this thread and a very very limited look at these investments and the websites behind them, I'd say these investors have a better shot at getting a date with Margot Robbie than getting their money back.

I bet RadioShack could make a comeback in Cleveland. Just needs a hype man who is good at making videos. 

[James Wise]

Quote from @Michael P.:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Adam Terneus:

Just got another email from Marco…😑

17% Interest Promissory Note | Short Terms

My partners and I are raising $5 million of short-term expansion capital for our exciting and profitable growing business, the Aspire Tour. Aspire is "The Largest Business Tour in the U.S." ~ Forbes Aspire is a major part of our Level Upand Money Is Mastermind family. We have roughly 1,900 paying members with a current valuation of $43 million. We're looking for a small number of Promissory Note investors with these terms: . 17% annual interest. 12-month or 36-monthterm. Quarterly interest payments. Secured by equity. (not real estate-based) $50,000 minimum investment. First-come, first-serve basis. Accredited investors only. . Feel free to book a 10-15-minute call to learn more. Marco Santarelli, Partner Aspire Tour and Money Is Mastermind P.S. Be sure to check out Aspire Tour on as well. Click Here to Book a

 Lol, they even got the Wolf of Wall Street. Nothing says "this is a legitimate investment" like the investment company hiring the dude who stole hundreds of millions of dollars from people.

 ya but I loved the movie !!  

 well going to Nuk on them sure wont achieve the return of investment all but assures a wipe out. 

 Based on what I've seen in this thread and a very very limited look at these investments and the websites behind them, I'd say these investors have a better shot at getting a date with Margot Robbie than getting their money back.

I bet RadioShack could make a comeback in Cleveland. Just needs a hype man who is good at making videos. 

 Ain't nobody slangin RadioShack batteries and Sprint phones like a 21yr old James Wise bro.