All Forum Posts by: Carlos Ptriawan

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

I hate to see/hear this. We looked at investing in the Norada Notes last year with my Investment Club. It was an unsecured note NOT backed by any real estate or hard asset. But rather how we understood it, the note was tied to the performance of previous Brick & Mortar stores that Norada said were performing well as online e-commerce stores now. We requested to see financials as part of our due diligence (numerous times), however they declined to provide anything saying that since they were a private company they didn’t provide financials. They offered to provide projections or a pro-forma. That was not acceptable to us as projections wouldn’t tell us how the company or portfolio of companies have been performing to date or give us any confidence in the degree of certainty with their ability to repay the note. We didn’t believe those old online retailers were performing well and didn’t even know they were still around. We decided to pass on investing.
I hope this works out well for all in the end, but I would certainly be concerned with them converting a Debt Position to an Equity Position at discretion. Especially if it was just in the fine print. That should have been highlighted. You’re just bumping investors down to the very bottom of the capital stack. I’d rather they just pause distributions and pick back up once the “economic conditions” are sorted out. But they wouldn’t want to accrue that kind of interest with those 12-15% notes. Again, I hope it works out well for all once all is said and done.

They were offering up to 23% on their notes, and I've heard from a guy named Madoff that it's kinda hard to Pause distributions in the middle of a Ponzi scheme as SEC doesn't approve of irregular theft , sorry, distributions :)

Next time you come across a suspect investment or just poor quality or even just one with high fees, please POST to the BP Forum dedicated to this "Syndications and Passive Real Estate Investing.", may help some less savvy investors.

I also suspect some of the fund syndication and REiT that people privately talked about is a mini ponzi given how disribution is being made.

think even if we look at many PE firm, since asset was self assessed and being sold between themselves and between fund investor, it is a “almost legal” ponzi

0 Votes

Nashville, Tennessee

Quote from @Terra Padgett:

Quote from @Paula Impala:

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

Even if they provided audited financial I would not believe it LoL

The ponzi syndicatation that I was invested has audited financial, actual very good high asset valuation and some name with Rocke**** as one of their backer/ consultant …. But SEC has decided it is a ponzi

Sometimes the easiest way to find out it is scam or not is just by checking their website and office address

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Nashville, Tennessee

Quote from @Jay Hinrichs:

Quote from @Carlos Ptriawan:

Quote from @Jay Hinrichs:

Quote from @Dimitrius Kiritsis:

Hey @Account Closed! Investing in multifamily dev. deals are generally riskier than acquisitions due to construction and lease up risks. Additionally, it's possible that your money will be locked up longer than it would in an acquisition investment. That being said, dev. deal investors can be compensated higher returns than acquisition investors in light of the additional risk.

It all boils down to the track record and reputation of the sponsor/developer. When vetting a potential dev. deal investment, pay close attention to the developers experience in the market and the number of deals they've successfully exited.

Best of luck!

one thing that always worries me about those deals.. is the lender can at their sole discretion stop funding the project and make the owners cash them out .. so there is that risk too..

That’s the biggest risk

has not been an issue lately but during the GFC holy cow you would see half built projects where the lender bailed.. the onwer lost the property.

In short , any rate/currency hike is causing liquidity crisis causing delay in ground up project even for project that was approved 2 4 years before the rate hike….

0 Votes

Dallas, Texas

Quote from @Jay Hinrichs:

Quote from @Dimitrius Kiritsis:

Best of luck!

one thing that always worries me about those deals.. is the lender can at their sole discretion stop funding the project and make the owners cash them out .. so there is that risk too..

That’s the biggest risk

0 Votes

Dallas, Texas

Quote from @Account Closed:

I am working for a sponsor who is raising capital for 2 ground up multifamily development projects. One is in DFW and the other is in New Braunfels. It seems like though they are great investments, though there are not too many people who actually dive into a private placement like this.

Would be interested in hearing your thoughts on getting into deals like ours.

You’d better build data center building that has CAGR of 20%.

0 Votes

Dallas, Texas

Quote from @Dave Meyer:

Door count is the worst (commonly discussed) metric in the real estate investing community. Why does everyone use it? Can we all decide to collectively kill it? Or are there some of you out there that stand by door count being a useful barometer of success? Honestly, I'd love to hear the argument for why this metric is useful, cause I can't think of one -- so please reply back here.

Here's my argument. Door count is what many in the analytics world would call a 'vanity metric.' It's something that looks important and fancy, but doesn't actually tell you anything about business performance. Sound familiar? It's because door count is a useless metric, it exists to pump up the ego of the investor, and nothing more. Here's why:

1. Door count tells you exactly nothing about the quality of a portfolio. As an example, let's say Jane T. Investor has 12 doors, and she leads with that when networking. Well 12 doors sounds solid, but how are they performing? Are they cash flowing? Do they require enormous amounts of time and maintenance? Are the returns as good as what other investors in your market/asset class are generating? I know people with huge door counts who lose money every month. What good is a 'door' if it doesn't generate returns? Tell me how efficiently your deals generate returns, and then I'll be impressed.

2. Prioritizing door count makes you focus on the wrong thing. If I wanted to get 100 doors in the next few years, I bet I could -- but you can bet many of those deals would be thin. Shouldn't we be prioritizing quality over quantity? If I could choose between earning $5,000/month from 10 doors, or from 5 doors, I would pick 5 doors all day long! Good metrics push you towards good decision making, and door count does the opposite. For a lot of people getting lots of doors would be detrimental to their strategy!

3. Don't even get me started on passive investor door counts. They're absurd. I invest in multifamily syndications as well as residential properties. On the passive side of my portfolio, I am in syndications that collectively own over 2,000 units. Does that mean I own 2,000 units? Of course not, claiming so would be ridiculous (don't tell people on Instagram, though). If I own 1% of those syndications, does thatmean I own 20 units? I have no idea, nor do I care. Why on earth do I care what % of the doors I own? I care about actual measurements of returns like CoCR, AAROI, and IRR to determine if my portfolio is doing well.

There's my argument -- but I want to be proven wrong. Someone explain to me why this metric is useful.

Same like AUM too or when realtor says their firm managed 5 billion transaction lol

2 Votes

Quote from @Michael P.:

Quote from @Chris Seveney:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Michael P.:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Michael P.:

Quote from @James Hamling:

Were looking at this all wrong Carlos.

We need to get out there, team up and open our shop: Kachara Enterprises

We will take NOTES, following same plan. $50k = 12%, $100k = 15% etc..

With the $ we are buying taco stands, and "optimizing them with ai"..... Anyone asks how or why, we just explain it's ai, it's the future, they can't get-it, it's too high level for them. lol.

And we also diversify buying the brand "Bum-Fight's", and were gonna bring back the defunct brand, again with ai......

We will also be working on habitation units for Mars..... with ai. Lol.

And taking on defunct K-mart brand to, you guessed it, integrate ai for an online only relaunch.....

And pellet smokers...... with ai, lol.........

OH! And our flagship development US item, Japanese style toilets in the USA..... ai powered! Lol.

Aaaand if things don't work out, well heck I guess we will just have to convert there notes to equity and walk away.....

I would be interested in a one year note that I can exit before it all collapses.

However I am disappointed you are not reviving Blockbuster video.

Kachara Enterprises is proud to announce for all our suckers.... er, marks.... er, Note Investors, yeah "investors"..... That we are always growing, adapting and evolving to new schemes... er scams.... er "opportunities" in the market and with that were proud to announce the exciting BlockBuster 2.0 "ai enhanced"!!!!

And for this limited time you too can be took... er "invest" in this exciting next chapter of video-less video..... Yes, with a simple 47 step approval setup for the ai "Entertainment Genie" we will go through your social media, your posts, e-mails, cc and bank accounts to let the ai decide for you! Now you can put that bothersome brain to rest, sit back and.... well just sit back because it may be a while until anything actually happens but someday, maybe, probably, possibly it will... maybe come to market.... maybe. Invest now!

And when you do dig deep dive into kochara enterprise, you know their management and boards are consist of :
- chairman of Enron
- SBF of FTX
- some name from Panama Paper
- all actors in Netflix’s Dirty Money

On this very particular business scheme , there are just too many bad actors involved. I am pretty sure internal Wells Fargo has more information and analysis about this business.

I am sure each of them has possessed one way ticket to Portugal or to Kenya or to some Caribbean island already LOL LOL

This thread has gone off the rails. Just like the business model of every syndicator/note maker.

Just hour ago Omni the company that used to own REV ( well including some of you ) , appointed Mrs. Sharon as the CEO of Omni , where she used to work for Pier1.

Some of you guys may want to talk to their investor relation and ask what the hell actually happened after REV ceased operation.

So going back to more on the original post - the way I read this was the manager was not really operating a fund, but basically just investing in other opportunities (more like a mutual fund). One of the things I look for when I invest is I look at what the operator is doing, if they are a fund of funds or just investing in other operating businesses, to me that is very different than a MF operator.

I am curious why someone in this instance would invest in a private company vs. a public entity like a mutual fund which of course has a lot more scrutiny.? My guess is the juiced returns. But I was curious to understand those that invested - why did they invest?

They have been listening to his podcast for many years he comes off as extremely knowledgeable, trustworthy, and informative. Well spoken and a great marketer. Likely they have done business with his turnkey marketing company and had decent results buying a turnkey rental in a B class area with decent returns maybe 7%. Then when the same trustworthy individual that guided them through the world of real estate offered them simpler note investing option at an even higher return, it seemed like an easy win and his podcast listeners jumped on it.

The actual net return for real estate multi family equity investment Core-Based Class A in "kosher way" may be around 1-3% these days annualized, a conservative private note return should be between 7-8% these days. So not so much different with CD or a bond ETF (6-7%).

What we don't understand is why ; such real estate note issuer should collaborate with infamous-and-well-known serial-scammer ( that's very transparent and well documented that they are a fraudulent ).

Usually in this circumstance, there may be some additional kickback / commision system that's we don't understood.

But a business tha's promising 25% is 100% guaranteed to fail.

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Nashville, Tennessee

Quote from @Jake Andronico:

Every market is different, but in Reno, NV for the month of May in 2024, our active inventory was actually very similar to what it was in 2018 when the market was "normal".

In 2022 in the summer the active inventory was in line with "normal", but last year the inventory in the summer was way down.

I'm curious what the summer will reveal in 2024 for active inventory, as there has historically been a spike with a couple of years of outliers.

What's going on in your market with inventory?

Have you check Resiclub data about inventory ?

They have very good overall statistics for every major city .

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Reno, Nevada