All Forum Posts by: Guy Idan

Quote from @Randall Joseph:

The latest from Ashcroft -- in the of the AVAF1 August Recap email -- does not seem terribly encouraging.

"With the original capital call amount of $27.9M, we have a $11.7M gap in funding and have a plan to bridge most of the gap by selling Elliot Baymeadows."

And, later in the update, Ashcroft acknowledges that the prior listing for Elliot Abernathy needs to be pulled because offers were too low (or...non-existent). "Upon receipt of initial offers, for Elliot Abernathy it is likely that we will pull the listing and work to season net operating income so the asset is valued based on the recent NOI growth."

It's hard to avoid connecting the dots, and to expect that the planned listing of Elliot Baymeadows will also be met with anemic offers. Such is life when you're forced to sell into a less-than-favorable market.

Are other folks still following along with this slow-motion trainwreck? Foolish to still hope that Class B investors won't be wiped out entirely?

 Wondering as well. They sent an email that AVAF 2 will also have a capital call. Looks pretty bad. Big shame to invest money into something that should be pretty "Safe" with not outrageous return expectation, and losing money like we invested into a meme coin.

I take responsibility for my naivety, and will never invest in a syndication again, but shame on Ashcroft Capital for their negligence and not being prepared for what has come.

Quote from @John Teachout:

I've just been deleting the additional offerings from Ashcroft. Sounds appealing but so did fund II. I'm not likely to invest with someone that has already proved they weren't prepared for the eventualities. We did a classic "buy high and sell low" move with all our syndicated investments it seems. We are still investing in multi-family but only with highly experienced operators. ie, they were doing it before 2008.

Couldn't agree more. I think it's funny that they send new offerings to people who invested in funds that have capital call. What makes them think I will invest more with them when they are  potentially going to lose hundreds of thousands of $ I invested with them in fund 1/2

@Jay Hinrichs and @Brian Burke - Appreciate your response and insights. I'm an investor in this fund and am trying to figure out the right thing to do and your comments are very helpful to learn and navigate this unfortunate situation. 

@Brian Burke - Dropping a question on you as you are well versed in this world - It seems that Ashcroft has an LTV of about 80% at the moment, or 78% if you take out the $14m loan ashcroft themselves gave. For my personal properties, I like to have 65-60% LTV, so 78-80% LTV during a time when the properties were purchased of record low interest rates, and with fluctuating interest rate, seems extremely irresponsible and almost foolish. 

Do most syndicators use these LTV's and is it common or did Ashcroft make a big mistake on that one?

Appreciate your feedback!


 

Hey.

I'm from Miami but thinking of investing in Savannah and buying either/both single-family and small multi family (2-4) units. Any feedback on the market and recommended areas? 

Is it possible to achieve a 5% cash-on-cash return there without a big value add or rehab?

Thanks!

Thanks for all the responses and feedbacks!

Quote from @Brock Mogensen:

It really depends on how the fees and promote are structured among the deals.  2% Asset Mgmt Fee and 20% promote is a high-level way to look at it. Let's use $500M AUM as an example.  At 75% leverage let's assume $125M in EUM.  If the portfolio throws off 10% Yearly Cash that is $12,500,000 -- your 20% would be $2.5M. Plus Yearly Asset Mgmt Fees of ~$200K.  Syndication is a great business!

 Hey Brock. Appreciate the response. 

Can you please clarify what you mean by 20% promote? never heard about that term. I know there's an acquisition fee, management fee, disposal fee, and the 30% profit split when selling. Is the 20% promote the profit split or something else?

Hi all.

I was wondering what is realistic to make with $500M-$1B in AUM? Needless to say that I don’t expect specifics about a specific company or person on this forum, as I know some guys here are hitting those numbers, but just an estimate. 

The background to this question is I’m 25, started a successful business and exited it, and as I’m learning and getting into the real estate world, one of the things I’m trying to learn and evaluate is what is possible and at what targets. For example, what would it take to make 500k a year? What would it take to make $1M a year? What would it take to make $3M a year? Etc..

Thanks in advance

Hey.

I'm looking at a deal in Florida that is 100% vacant due to the property having one master lease for all 13 units, and the master lease ended now so it's fully vacant.

I guess the pro is that I can easily renovate and bring new tenants, the con is that there's a mortgage payment of $100k a year that will supposedly come out of my pocket if the property is vacant.

Another option is that I buy it all cash, which isn't ideal for me as it will tie up all my real estate capital and then cash out refinance once it's stabilized.

What would you do in this scenario?

Thanks!

Quote from @Taylor L.:

Didn't do that one but both Joe and Trevor were hugely instrumental in my getting into and growing in this business.

 Thanks for the comment Taylor!