All Forum Posts by: Dianne Pettitt

Rick. 
Thank your for all that good advice.  That is a huge amount of time to research all the aspects that you presented.  Certainly, you are more dedicated than I am!  The components you outlined are excellent factors to consider.

 I did  try to reach out to the BBB but got no response.  I made various other calls that I stated in my thread.  My husband ( who is much more conservative than I am) and I weren't comfortable with the whole situation. 

 I still wonder why they reach out to so many folks so far away. Virginia and Georgia are a long way from Texas.  Aren't there potential investors in their area; people who can easily eyeball the situation and check things out much more readily?  I guess this just wasn't for me!

Scott,

Thank you for your input.  The developer plans to sell the building.  The owner will rent out the units at the estimated price, over 3 years and that represents the return to the investor.  

I don't fully understand how they computed the figures and he said he couldn't explain it.  The phone guy also asked what he could do to make us comfortable "trusting him".  Then he offered the aforementioned references.  This has already taken up more of my time than I want to give!

I have not heard from anyone, in Texas, or elsewhere who know of this group and their work. Definitely not moving forward. 

Thanks for your interest,

Dianne 

This person mailed us a lot of papers and glossy pictures of the area. Said they were not actual pictures, but renderings of proposed project. The papers had a chart with the horizontal heading "Average monthly rent" for a 835 sq. ft. unit across the top and on the left vertical side was the exit CAP rate (36 month hold). The right vertical column showed: the "IRR" (don't remember how he attempted to explain that one) , total return/unit and equity multiple. With the $125,000 investment and a rent of $1545 it showed a return of $219,224. I don't remember what he said the IRR meant. It actually is a lot to absorb verbally over the phone and make such a decision without any written computations. He said he didn't know how it was all computed. The table didn't include the "organizational cost" or the management fee, but in the "Confidential Private Placement Memo (50 pages) : they listed it as $35,000 and $15,000 respectively. That document stated that "neither the SEC or any state securities commission has approved or disapproved that the memorandum is truthful or complete"!!!! Another 50+ page document of the "Limited partnership agreement" was included also.

None of this gave me a $125,000 comfort level.   He asked us a couple of times if we could afford to lose all our funds. Was he recording the conversation to protect himself against future lawsuits?  Investing for me is about a return and not a total loss of my principle.       

So the guy called again yesterday and when my husband said that we didn't want to move forward, he asked why, tried to keep us talking and telling him what kinds of things we were investing. He already had asked a lot of personal information in the first call and the signing documents asked for more. Is this ultimately about ID theft and loss of funds?  I don't know and I don't want to find out.  

I am wondering if I should let others know about this potentially risky "investment"!?

This company just cold called us.  They plan to build and sell.  I asked who would buy and they replied that a big bank in Canada bought the other part of the project that is completed on the same 32 acres.  

I called the Austin branch of  Consumer Protection Division of the AG's office and they said that they have no complaints about the company.  They didn't seem to know the name.  Said I could file a complaint.  

When I tole the man who called us that I needed more time to think about it, the caller said he could give me "references", but the they were internal people, like one of the owners and the "manager" of the project!  I am not going to invest with these folks.  So far, they haven't reached out again since Friday.  

That was a typo about the location. He did say it was 20 miles from Austin. My concern came when he started to press us for an answer.  I can find the development on the internet, but my concern is the way the "deal" is structured.  He can't tell me of any other investors in my area and he says they have two brothers:  one a surgeon and the other an NFL from player who have put millions into this.  So why do they need my money?  The paperwork they sent asks for a lot of personal information that I am uncomfortable giving - like SS#, and they already have my address.

Offer to invest $125,000 in "The Summit Lofts" in Georgetown TX - multi use development near Austin. They say we can double our money in 3-4 years. Is this legitimate? I live in Richmond VA and know nothing about this area.

Thanks, Dianne

We were called by Novak Capital Management offering us to invest a minimum of $125,000 in a development named the Summit Lofts in Georgetown TX (209 mi south of Austin.  They project a profit of 200% in 3-4 years.  Is this a scam? How can we verify their legitimacy?

We received a "Notice of Electronic filing procedure" yesterday from the US Bankruptcy Court. One of our tenants is named, but no other particulars.   This is a confusing form saying we  (I guess) have to submit documents or a request to waiver to file.   Has anyone been through this and what can we expect and what must we do?  Do we need an attorney? 

Dianne Pettitt 

Our local REIA organizer says not to bother with short sales because the bank gets paid for the first three missed payments (due to insurance) and after that they get paid all the rest of what is owed them. So they have no desire to sell the house at any discount. It seems that banks buy a house and then sit on it for months. Am I wasting my time?

Hi Mark,

We live in Richmond (N.Chesterfield County) and started about 1 year ago. We have joined to REIAs here. They are extremely helpful and we enjoy them a lot. There seems to be a new interest here in historical tax credits, but that is really not for newbies, so we haven't done one yet.

Our County is South of the James River and deals are not easy to find here. The school system is the big attraction - very,very good and housing is a tad less expensive in some areas then North of the James.

We are finishing our first flip, just closed our second rental house and have tenants and are closing on July 17 for the second. We also have a short sale under contract. This is due to LOTS of diligence, time and finding a good real estate agent ( our fourth!).

So, thanks for your service and looking forward to meeting you!

Dianne