All Forum Posts by: Christopher G.

This guy just lost another deal. I'm tracking at least 5 deals with complete loss of LP funds and yet he is still doing deals and people are investing with him.

0 Votes

Quote from @Dan Rowley:

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?

There was a recent webinar, bottom line, it looks like Darryl Heller sold off many of the ATMs, didn't pay the people who put the cash in them, didn't pay the stores that have them on site, isn't providing information to David Zook's team that the court has ordered and is racking up something like $50k+ a day for not doing so...it is a complete mess and seems like there are only a fraction of the ATMs that might still be producing money but the company hired by Zook to get their hands around all of this is running into many roadblocks because Heller's team isn't providing info. At this point, we are all unsure who is even going to provide the K1s for 2024 but I'm sure that'll be figured out soon.
I will say that it seems that David Zook is really trying to figure this out for us, and himself, but I don't see how we get our money back at this point unless Heller provides the $120M+ that the court has ordered him to.

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Quote from @Joel Owens:

Chris G sorry to hear that. Just remember ground up type project deals can sometimes have the fattest projections but also the most variables and risk. Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.

Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.

Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.

Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages. That is an individual answer specific to each one's situation and risk tolerance level.

These weren't even ground up rehabs, all were value add. He got short term debt and bought at too low of a cap rate and the market shifted; I wasn't too savvy enough at the time to realize the danger. What really pisses me off about that crew is the total lack of ownership. Never once came 'hey team, I'm sorry, we screwed up....here's what went wrong...' It was always....black swan event, interest rates never went this high, no one foresaw this, insurance and taxes are through the roof, not our fault. Every capital call webinar had the same slides showing the interest rates increasing that was impossible to foresee....blah blah blah

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@Gino Barbaro thanks for the response! Coincidentally, I just listened to episode 3690 on Next Level CRE: Power of Mindset today. Was very glad to know that Trevor McGregor coached(es) Viking Capital, GoodEgg, and Passiveinvesting.com (all who I am an LP in some of their deals)

2 Votes

Most people should know that Lane has lost multiple syndication deals by now...I was in 3 with him and all were lost, they sent out a mass email to the wrong distro implying that another would be lost in early 2025 and I've heard through the grapevine that others were lost but I'm not an investor in those. If you do the math, $10s of millions of investor $s gone and this guy changed his name from Simple Passive Cash Flow to Wealth Elevator. Recommendation...stay away! He is still doing deals, maybe to get that GP fee to cover his personal losses?

4 Votes

Quote from @Mark F.:

Quote from @V.G Jason:

Great job. Call out these terrible acts by terrible folks.

The syndicator is just a letter off from the word Lame. Spill the beans, the world is too public.

Careful what tree you bark up, you'll get the wrong dog. Fold you like a pretzel if you try on it.

@Lane Kawaoka. Dunno if it tagged him but the guys at Drunk Real Estate (@J Scott) talked about this topic a bit in their latest podcast episode regarding LPs or random strangers calling out GPs on Twitter/X. There's a big difference from calling out scammers and fraudsters verses calling out failing syndications. I saw nothing wrong with what Giles said as he was shedding light on the lack of communication. If i was an investor in Lane's syndication and he pulled that, I sure as hell wouldn't be scared. Linked to his profile in this post as well.

I invested 5 figures into a failing note syndication (AHP) and theres a thread on BP. The sponsor has posted updates in it, albeit it bad ones. Glad Scott is addressing this head on and sorry to hear it came to this.

https://www.biggerpockets.com/users/wealthelevator

This is like financial PTSD. I 'learned' about syndications and had a few discussions with him back in 2019 and did 4 deals before I told myself that I needed to diversify and invest elsewhere. 3 of those 4 deals have failed, with 100% LP capital lost and the 4th one, though the latest correspondence was positive, is now in a capital call event because of the loan.

This GP's ability to move fast and replace bad apartment managers, read where the market is going, and engage (call every LP and explain the situation during a capital call) has led to millions of investor capital being lost. I was a novice investor in 2019-21 and thought the deals all made sense but didn't understanding where cap rates were and where the market was, I feel like the GP team should have known like many other GPs knew what was coming. I'm sure the GPs also lost millions but they also make a lot due to acquisition fees. It's extremely frustrating but perhaps/hopefully it has made me a better investor?

1 Vote

Yep, I'm in a ATM deal with Paramount, through David Zook, and they missed their quarterly payment this month. Lots of Webinars that I'm trying to watch after the fact but this is very concerning!

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Quote from @Barclay Chan:

Quote from @Christopher G.:

I'm in AVAF2 and haven't seen any captial call request. I think since AFAF2 was started later when rates were higher, it might have some better loans???

that being said, I lost a few days with the former Simple Passive Cash Flow now called Wealth Elevator with Lane Kawaoka....capital calls that didn't solve the problem and the bank took the asset back and we lost everything.

How much more Lane request for his capital call? And how long from the capital call until the bank took the asset back?

33% the first capital call then 20% the second time....bank took the assets back probably within a year or a bit more. floating rate debt, bad property managers, interest rate explosions...

1 Vote

Dallas, Texas

I'm in AVAF2 and haven't seen any captial call request. I think since AFAF2 was started later when rates were higher, it might have some better loans???

2 Votes

Dallas, Texas

It depends on which fund you are talking about. I'm in AVAFII and they stated the hope to start distributions again in the fall. I have a friend in AVAF III and it is paying as scheduled.

This is one of the more reputable companies, I'd rather they pause then do a capital call. A lot of syndication haters on here for some reason.

Quote from @Chris Seveney:

Quote from @Account Closed:

Anyone else getting notified this morning of paused Ashcroft distributions due to refinancing issues?

We have been working on refinancing the asset in order to access the equity and create liquidity to earnestly restart the renovations. The new lender we initially signed up with for the refinance notified us that they would not be able to provide the new loan at the agreed upon terms due to current market volatility.

We continue to pursue alternative refinancing options and anticipate having a new loan closed within the next six months. To remain conservative with liquidity and continue increasing NOI through unit renovations, we are pausing distributions beginning this month. Your preferred return will continue to accrue and will be paid at the next capital event, or when cash flow allows.

While distributions are on pause, we are not collecting its asset management fee and Birchstone Residential is collecting a reduced property management fee.

Curious its been five months, what is the update?

0 Votes

Dallas, Texas

All Forum Posts by: Christopher G.

Christopher G. has started 12 posts and replied 66 times.

Post: Syndication - anyone part of pipelines like Lane Kawaoka?

Post: ATM Investments fund

Post: PEP fund with Lane Kawaoka

Post: PEP fund with Lane Kawaoka

Post: PEP fund with Lane Kawaoka

Post: Syndicator Threatens LPs for Negative Comment about them On BP

Post: ATM Investments fund

Post: Ashcroft capital - Paused Distributions

Post: Ashcroft capital - Paused Distributions

Post: Ashcroft capital - Paused Distributions