All Forum Posts by: Dan Rowley

@Mike FitzPatrick  I have experience investing with them.  you can DM me to connect if you'd like my feedback.

Quote from @Sean Kirk:

I'm seeing what seems to be 10%+ cap rates on roofstock. Has anyone bought from the platform? Is their underwriting sound?

I used Roofstock to sell one of my rental properties in TX as their sales commission is lower than going through traditional sales channels.  I have not purchased property via their platform but I'd also note it's few and far between to try to find any deals that pencil in the current environment.  4-5 years ago one could find good cash flow with SFR properties.

Quote from @John Jasko:

I am in ATM investment.  Bronson Hill created at fund of funds and invested through Dave Zook at the RealAsset Investor.  The investment is with Paramount Partners.  This deal has turned very negative.  I am concerned that it is a ponsi scheme.  be very wary of ATM deals.

Any updates on this one from anyone who's invested?

Quote from @Chris Seveney:

Quote from @Jay Hinrichs:

Quote from @Evan Polaski:

@Hyun Supul, without diving too far into this, and the devil is always in the details, when I see this, I can't help but assume this whole offering is a way to for them to raise pref equity for their own deals, but wait, that won't look too good, so let's layer in some private credit, too.

It says it will lend money AND invest pref equity into MF deals owned by Disrupt and Open Door Capital.

Questions to ask: what allocation is going to loans versus pref equity in their own deals?  Why do their deals need capital infused, and are those reasons due to poor management or things that were truly out of their control and/or could not have been foreseen at acquisition?

On the loans side, who is the lender JV? What is their book of business? Is this lender going to sending money back, as second mortgages to ODC/Disrupt deals?

@Chris Seveney, I can only imagine two things here:
1. They are lending to people who are so desperate they will pay 16+% for the loan.  Which in itself gives me major pause, because these rescue capital loans almost never work out.

2. They aren't making money on the loans and the true business driver is the pref equity raise for their own deals.  It allows them to keep those afloat and can collect fees on that side by retaining ownership of the deal.

OH gosh I just read this and this is what led a company I worked for in the 80s into a massive BK loaning between partnerships.. Not sure about this I hope they can pull it out. 

 Do not quote me on this but I think someone told me the new fund was a debt fund (along with some other asset classes) and a percentage of the money raised was to invest in their other funds (ie. instead of capital calls).  This is what I heard third hand, so not sure if it is true but i believe the person got this from the PPM which was noting where the monies were going. 

I know the "survive till 25" crowd was banking on interest rates going down to the 4's or low 5's next year and that was going to save these deals. If that is the case, I unfortunately do not see that happen.

What do others think?

 Chris, Agreed & I see a VERY low probability that interest rates will be in 4s or 5s in 2025, so those deals with variable rate debt will likely continue to bleed.

Quote from @John McKee:

What kind of upside/IRR are they promising in their fund? @Dan Rowley

Their projections for fund I'm in were 16% IRR

Quote from @John McKee:

7% is better than a DST, but look at mortgage notes as they provide a higher return and have no acquisition fees, capital calls etc.

It's true that you can get higher current return with notes, but there is no upside upon exit.  Comparing Equity with debt is kind of apples vs. oranges.

@John McKee

Quote from @John McKee:

I do like the industrial sector and I can see the stability in it, just like you can with mortgage notes.  I too care about the reliable cash flow and not so much about the overpromised value add.  What kind of returns are you getting? @Jeff Fortuna

@Dan Rowley

 @John McKee - I'm receiving roughly 7% CoC returns for my two investments, with projections those will rise in future as they are able to realize contractual rent increases.

I have been invested with MAG on a single asset deal and a fund for several years. I feel they know what they are doing in the NNN lease space.

Quote from @Jim Peret:

Sorry Dan I misinterpreted your post. 

I invested in ODC Sunbelt Diversified Porfilio and 2.5 years in NOI. They also raising more capitol to cover the monthly loses which dilutes our shares. They're missed every metric. Vacancy rate, insurances taxes, interest rate, repairs and maintenance. One or two maybe but everything. It's unbelievable that anyone could be so bad at buying real estate. Unless you're partying in Hawaii and picking real estate without doing any due diligence at all. To top it off he's out selling guru stuff and has been. He should be digging his heels in every day to make his investor profitable. That is if he gives a Sh t.

 Jim - yes, 100%

I feel like especially in these type of syndicated FUNDS, there were operators that raised a bunch of money and then rushed out to immediately deploy the capital - overpaying for assets at the peak of the market and/or using risky bridge debt.  So, so it's not real surprising to see some of these results.... sigh

Quote from @Jim Peret:

Dan,

Why are you acting like mismanaged ODC is the gold standard?  

 Jim,

I'm not sure you how you would interpret my comment to me I represent ODC as a gold standard.  It's quite the contrary.  I have not nor would I invest in ODC and RE: my comment - I was focusing in on the fact they are now offering a private credit fund, which is a very different business/investment VS. a syndication, and so I'm advising that potential investors should be wary of this.