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

[James Wise]

Quote from @Christopher Stevens:

Let me clarify. I do know the last mass communication was 9/16 and that Marco promised communication every 2 weeks. Lots of promises have been made and not delivered, but the best thing we can do is be patient and let them do their best. That’s the best chance we have at potentially recovering from this. Negative posts and lawsuits are like chopping off your nose to spite your face.

I’ve respectfully reached out and asked for an update. Here’s what I received from his assistant, Kathy, on 10/23:

Hi Chris- I am helping Marco go through his emails and responding as best I can. Per my recent conversations with Marco, he is working with a financial adviser and counsel on a restructuring plan to repay Norada Capital's noteholders. The process has been and continues to be very time consuming as counsel is conducting due diligence, and has requested and is assessing a substantial amount of information. He anticipates being in a position to provide a substantive update in late October or the first week of November.
Thank you for your patience and continued support. (End of response)

Clearly it’s past that timeframe, so I’ll reach back out again soon. Let’s keep in mind, Marco and his team are people and they’re doing their best. They are husbands, mothers, brothers, sisters, etc. They didn’t create Norada to be scammers and crooks. For well over a decade, they helped many investors grow and they had a great reputation. Let’s give them time to figure this out. That is our best chance at recovery. Send them a kind message of encouragement and gratitude. Ask them what you can do to help. If we all pitch in and provide support, even if it’s just to say a kind word to them, we have a better chance of winning!

Best wishes and good luck to all in your investment journey.

 You sound like you're on the Norada  pay roll.

[Christopher Stevens]

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

[Christopher Stevens]

😂 I wish I was on their payroll. Then, at least I’d be getting some money monthly. No, I needed cash flow since I lost my job and invested. I invested because of their long-standing reputation. I knew the risk was high. This was a good lesson for me and I hope to recover some of my investment. If not, I’ll write it off as a loss. Win some, lose some. It’s best to channel energy towards the future and not dwell on negative things. 

Best wishes and good luck to all! 

[Michael P.]

Not sure “restructuring” is going to save investing in cryptocurrencies, “theatrical performances”, and Radio Shack. But I’ll hope for the best for you. 

[Christopher Stevens]

Does anyone know how we can write this investment off to help reduce our tax liability? Can we obtain a special form or document to show the loss?  

[James Wise]

Quote from @Christopher Stevens:

Does anyone know how we can write this investment off to help reduce our tax liability? Can we obtain a special form or document to show the loss?  

 Have you never filed taxes before? Your profile has several investments on it so theoretically you should be generally aware that business income and expenses are accounted for on your taxes even if you have a CPA do them and don't pay much attention to the details.......

I'm really thinking that that you are a Norada paid plant. Or I am thinking you might actually be a Marco ran burner account trying to change public sentiment and trying to get everyone to move on from suing him (you, Marco on your burner) lol.

[Paul Azad]

Copium2024 appears to still be the most plentiful element on the periodic table, and also on this thread, Remember Norada Capital Management invested the investor's note money into an obvious scam company run by a documented scammer, which filed for bankruptcy almost two years ago. It has a half a dozen lawsuits against it. Either Marco knowingly did this and was complicit or he unknowingly did this and was moronic. Any other interpretation is pure Copium2024 :)

The investors don't need "communication", they need an apology, an admission of what he did, and their money back. 

[Jay Hinrichs]

Quote from @Christopher Stevens:

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

Chris this also reminds me of the first real estate crowd funders like Realty Shares that imploded spectacularly.. A tad different with them but there was so much hype that they would put an investment up and literally fill it in 1 hour.. no way anyone did DD on them or the deal.. it was massive FOMO and whatever trust they had built. So like you said I think folks Jut basically trusted the Sponsor and for whatever reason did not realize the risk in unsecured Notes..

[James Wise]

Quote from @Jay Hinrichs:

Quote from @Christopher Stevens:

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

Chris this also reminds me of the first real estate crowd funders like Realty Shares that imploded spectacularly.. A tad different with them but there was so much hype that they would put an investment up and literally fill it in 1 hour.. no way anyone did DD on them or the deal.. it was massive FOMO and whatever trust they had built. So like you said I think folks Jut basically trusted the Sponsor and for whatever reason did not realize the risk in unsecured Notes..

The trust one can build up over the years on platforms like BP, Youtube and others is insane. As an example, and I have had it happen multiple times; we put a property under contract with a new investor and when we send them the wiring instructions for the EMD to be held in HoltonWise's trust account, they get so excited they (unprompted) just go ahead and wire in the full $100k or so purchase price amount instead of the $1k or $2k EMD. Then I need to go back and explain the escrow process and how they should never send that money to a seller and it should only go to a title company etc etc....

So you take a cat like Marco who's been around every day for a long long time, it's not surprising people would blindly buy whatever he was selling. Same thing with Clayton Morris and any other well known operator really.

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Christopher Stevens:

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

Chris this also reminds me of the first real estate crowd funders like Realty Shares that imploded spectacularly.. A tad different with them but there was so much hype that they would put an investment up and literally fill it in 1 hour.. no way anyone did DD on them or the deal.. it was massive FOMO and whatever trust they had built. So like you said I think folks Jut basically trusted the Sponsor and for whatever reason did not realize the risk in unsecured Notes..

The trust one can build up over the years on platforms like BP, Youtube and others is insane. As an example, and I have had it happen multiple times; we put a property under contract with a new investor and when we send them the wiring instructions for the EMD to be held in HoltonWise's trust account, they get so excited they (unprompted) just go ahead and wire in the full $100k or so purchase price amount instead of the $1k or $2k EMD. Then I need to go back and explain the escrow process and how they should never send that money to a seller and it should only go to a title company etc etc....

So you take a cat like Marco who's been around every day for a long long time, it's not surprising people would blindly buy whatever he was selling. Same thing with Clayton Morris and any other well known operator really.

YUP buyers  can be quite gullible and simply not understand the RE and escrow process.
I funded a operator over in Philly.. And he was getting foreign investors to wire him 100% of the purchase prices direct to him.. Created false settlement statements ( criminal of course) so these folks thought they owned the property when in fact I owned them.  Much like MOrris guy having all recorded docs sent to his office so the buyers had no clue of all the liens etc ..  As you can imagine his rob peter to pay paul imploded on him just as spectacular as Morris.. He just did not have the same SM presence.. But there were big articles in teh Phily paper and Baltimore sun.

[James Wise]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Christopher Stevens:

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

Chris this also reminds me of the first real estate crowd funders like Realty Shares that imploded spectacularly.. A tad different with them but there was so much hype that they would put an investment up and literally fill it in 1 hour.. no way anyone did DD on them or the deal.. it was massive FOMO and whatever trust they had built. So like you said I think folks Jut basically trusted the Sponsor and for whatever reason did not realize the risk in unsecured Notes..

The trust one can build up over the years on platforms like BP, Youtube and others is insane. As an example, and I have had it happen multiple times; we put a property under contract with a new investor and when we send them the wiring instructions for the EMD to be held in HoltonWise's trust account, they get so excited they (unprompted) just go ahead and wire in the full $100k or so purchase price amount instead of the $1k or $2k EMD. Then I need to go back and explain the escrow process and how they should never send that money to a seller and it should only go to a title company etc etc....

So you take a cat like Marco who's been around every day for a long long time, it's not surprising people would blindly buy whatever he was selling. Same thing with Clayton Morris and any other well known operator really.

YUP buyers  can be quite gullible and simply not understand the RE and escrow process.
I funded a operator over in Philly.. And he was getting foreign investors to wire him 100% of the purchase prices direct to him.. Created false settlement statements ( criminal of course) so these folks thought they owned the property when in fact I owned them.  Much like MOrris guy having all recorded docs sent to his office so the buyers had no clue of all the liens etc ..  As you can imagine his rob peter to pay paul imploded on him just as spectacular as Morris.. He just did not have the same SM presence.. But there were big articles in teh Phily paper and Baltimore sun.

 Brutal. What happened to all of the properties, the perp, and the investors?

[Jay Hinrichs]

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Christopher Stevens:

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

Chris this also reminds me of the first real estate crowd funders like Realty Shares that imploded spectacularly.. A tad different with them but there was so much hype that they would put an investment up and literally fill it in 1 hour.. no way anyone did DD on them or the deal.. it was massive FOMO and whatever trust they had built. So like you said I think folks Jut basically trusted the Sponsor and for whatever reason did not realize the risk in unsecured Notes..

The trust one can build up over the years on platforms like BP, Youtube and others is insane. As an example, and I have had it happen multiple times; we put a property under contract with a new investor and when we send them the wiring instructions for the EMD to be held in HoltonWise's trust account, they get so excited they (unprompted) just go ahead and wire in the full $100k or so purchase price amount instead of the $1k or $2k EMD. Then I need to go back and explain the escrow process and how they should never send that money to a seller and it should only go to a title company etc etc....

So you take a cat like Marco who's been around every day for a long long time, it's not surprising people would blindly buy whatever he was selling. Same thing with Clayton Morris and any other well known operator really.

YUP buyers  can be quite gullible and simply not understand the RE and escrow process.
I funded a operator over in Philly.. And he was getting foreign investors to wire him 100% of the purchase prices direct to him.. Created false settlement statements ( criminal of course) so these folks thought they owned the property when in fact I owned them.  Much like MOrris guy having all recorded docs sent to his office so the buyers had no clue of all the liens etc ..  As you can imagine his rob peter to pay paul imploded on him just as spectacular as Morris.. He just did not have the same SM presence.. But there were big articles in teh Phily paper and Baltimore sun.

 Brutal. What happened to all of the properties, the perp, and the investors?

since mine were all in my name  I did about 50 of them.. most got sold and we made our profit and about 10 were in conflict.. but again since they were mine I just sold them and moved on.  Perp has been indicted and investors got hosed like most investors do when things go bad or were Caught in a rob peter to pay paul scenario .  Hit me off line if you want the name then you can google the two papers and read the articles.

[Nate Marshall]

Quote from @James Wise:

Quote from @Christopher Stevens:

Does anyone know how we can write this investment off to help reduce our tax liability? Can we obtain a special form or document to show the loss?  

 Have you never filed taxes before? Your profile has several investments on it so theoretically you should be generally aware that business income and expenses are accounted for on your taxes even if you have a CPA do them and don't pay much attention to the details.......

I'm really thinking that that you are a Norada paid plant. Or I am thinking you might actually be a Marco ran burner account trying to change public sentiment and trying to get everyone to move on from suing him (you, Marco on your burner) lol.

 James you are just as Wise as your name! I always appreciate your input. I think even Coach Prime would agree with you. 

[Nate Marshall]

Quote from @Jay Hinrichs:

Quote from @James Wise:

Quote from @Jay Hinrichs:

Quote from @Christopher Stevens:

Quote from @Chris Clothier:

I'm still not going to post at length here as there is clearly more to come out, but the past few posts are interesting to me. 

I think one critical piece is being overlooked.  It is my opinion, that in order to get investors to look to the left while you are showing them on the right what the investment entails, you have to have a brand with a good reputation using their list to raise money.  If investors believed, as most emails I have received from this company going back to 2012 have made it appear, that this was a real estate company doing real estate business, then many investors may have simply let their guard down.  Many may not have known or understood what they were investing in.  They may have been looking left and preparing for a 12%, 15%, 17% return and never paid attention to the risks on the right.  Many were clearly caught off guard by the detail that their distribution could be halted and their investment converted to stock.  

I would think you have to have a very specific audience to go for this type of investment and pre-existing trust is at the top of the list.  An audience that has been built over a long period of time and with a lot of faith and belief in the personality presenting is one that is most prepared to invest without question and most likely to be attracted to the high returns.  The audience is pre-disposed to believe. 

 100% correct, Chris! Well said. 

Chris this also reminds me of the first real estate crowd funders like Realty Shares that imploded spectacularly.. A tad different with them but there was so much hype that they would put an investment up and literally fill it in 1 hour.. no way anyone did DD on them or the deal.. it was massive FOMO and whatever trust they had built. So like you said I think folks Jut basically trusted the Sponsor and for whatever reason did not realize the risk in unsecured Notes..

The trust one can build up over the years on platforms like BP, Youtube and others is insane. As an example, and I have had it happen multiple times; we put a property under contract with a new investor and when we send them the wiring instructions for the EMD to be held in HoltonWise's trust account, they get so excited they (unprompted) just go ahead and wire in the full $100k or so purchase price amount instead of the $1k or $2k EMD. Then I need to go back and explain the escrow process and how they should never send that money to a seller and it should only go to a title company etc etc....

So you take a cat like Marco who's been around every day for a long long time, it's not surprising people would blindly buy whatever he was selling. Same thing with Clayton Morris and any other well known operator really.

YUP buyers  can be quite gullible and simply not understand the RE and escrow process.
I funded a operator over in Philly.. And he was getting foreign investors to wire him 100% of the purchase prices direct to him.. Created false settlement statements ( criminal of course) so these folks thought they owned the property when in fact I owned them.  Much like MOrris guy having all recorded docs sent to his office so the buyers had no clue of all the liens etc ..  As you can imagine his rob peter to pay paul imploded on him just as spectacular as Morris.. He just did not have the same SM presence.. But there were big articles in teh Phily paper and Baltimore sun.

 Bernie Madoff and Sam Bankman-Friend would be proud. 

[Engelo Rumora]

Quote from @Christopher Stevens:

😂 I wish I was on their payroll. Then, at least I’d be getting some money monthly. No, I needed cash flow since I lost my job and invested. I invested because of their long-standing reputation. I knew the risk was high. This was a good lesson for me and I hope to recover some of my investment. If not, I’ll write it off as a loss. Win some, lose some. It’s best to channel energy towards the future and not dwell on negative things. 

Best wishes and good luck to all! 

I like your attitude mate.

Win some, loose some.

We live and we learn and we grow and hopefully get better.

Such is life and wishing you and everyone else much success