All Forum Posts by: Jon P.

How in the world is anyone being optimistic about this situation?  I'm guessing because most newbies have never gone through a situation where they invest in unsecured notes (if we can even call these notes) and they stop receiving payments.  This has disaster written all over it.  This is just the start of a larger decline in a company raising money from investors without proper SEC fillings that is starting to not pay investors back.  It's crazy to me that people don't even know where their funds were invested.  This is a real estate company that doesn't even hold these funds in real estate?  How does that make sense?  They invested in declining businesses with unrealistic returns.  Radio Shack?  Come on!  Shouldn't they be recommending people invest in real estate?

If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan?  If you now have equity in the business, shouldn't you be entitled to see that?  I would be pressing the owner for that!  Shouldn't you be entitled to actual reports for the business seeing transparent financials along with understanding exactly what your equity position is?  Doesn't sound like any of this has been provided.  Seems like the "equity" you get is just a cop-out excuse to not pay you.  Who's to say this company doesn't just file bankruptcy or the founder disappears with everyone's capital.  I've seen that before time and time again.  My two cents, anyone that invested in this needs to kiss their money goodbye.  In an unsecured investment, you literally have no recourse to get your money back.  I would be hiring an attorney to be first in line for any distributions that do come as it's literally first come first serve for people that file suits and obtain judgement first.  If you don't do that in time or are way down on the list, the likelihood of receiving any capital back is slim to none...

Here are the key takeaways here that appear to be the most concerning.  I have been on their email list for years now and seen these offering, so I am familiar with them, but I did not invest once I learned what the money was actually invested in, which seemed ridiculous!

-Proper SEC guidelines/filings were not followed to raise capital from a large group of unaccredited investors.  This is a big legal issue that may weigh in favor of the investor.  Probably some predatory or fraudulent activity here that should be investigated.

-Most importantly, this are unsecured investments.  Note to new investors, stick to actual RE investing, and never lend money to someone that is not secured.

-These investments were not even invested in real estate by a real estate company, things like failing companies, crypto, etc.  Did people not know what they were actually investing in?  Dress Barn & Radio Shack...what??

-No concrete business plan, financials or actual equity shares are being disclosed to investors, which need to be.  "Equity" seems pretty worthless in a private company that can't make payments.

-This is the strangest investment opportunity I have seen offered.  In true syndications, a sponsor shares all financials and will do a capital call if market conditions dictate more capital is needed.

-Basically it appears they have run out of money to pay investors back.  Nothing has changed or will change soon economically, so I have no idea how they are going to pay anyone back.  Get a judgement as quickly as you can.  This may turn into a class action suit, but I think it's better to even be first to the punch before that.

My recommendation is that you be first in line to hire an attorney to attempt to get part of your funds back.  Otherwise you are left sitting on the sidelines waiting and hoping, which I have never seen do good for anyone.

Strange how I keep getting their emails to still invest in these funds.  How are they still advertising this?  Additionally, last week I received this email from them as well...seems like a rob Peter to pay Paul scenario...none of which sounds good...

Here is their marketing email about the original fund I am still receiving:

In today’s volatile market, I want to discuss inflation and some ways you can beat inflation to help you grow your wealth and boost your passive income with a focus on our investment fund, Norada Capital Management.

I'm hosting a live webinar this Thursday, April 11th at 11 am PST (2 pm EST).

In this live webinar we will discuss:

• How does Norada Capital mitigate risk in this environment?
• How can Norada Capital pay a fixed 15% yield to investors?
• How long has Norada Capital been offering notes?
  
• What businesses does Norada Capital invest in?
• How does the fund work?

I will send out the live webinar link one hour before the live event so keep an eye out on your inbox!

@Jamie Stone

Just keep in mind that many people responding on this thread has something to sell you...so it's not really unbiased advice.  I see TK providers on this thread telling you why other teams suck/why they are the best, and I see others on this thread telling you why TK sucks because they sell their own product like coaching, fund investing/syndicatons, agents looking for your business, etc.  Just thought I should point that out.

All these ways are fine ways to invest, but they are for different types of investors.  The investor that wants to rehab/brrr is likely not the TK investor and vice versa.  There is absolutely nothing wrong with TK if that aligns with your goals as an investor.  I've invested in many TK and rehab projects over time.  My advice is to determine what kind of investor you are at this time, and invest in the strategy that makes sense for you.  Just make sure you do your research on who you are working with and what their reputation is.  BP is a great place to start looking up reviews.

P.S. - I have nothing to sell you...

@Wendell Butler

I was just told our lender could not finance our condo since there is more regulations on condos now as investment properties. This was for an individual condo, not a MF, but something worth considering. Anyone else experiencing this? The lender required all HOA docs, insurance info, tenant leases, etc. come to find out they simply denied the loan...

@Kent Williams

Two to three years ago Columbus had excellent prices that have appreciated quite a bit now that makes cash flow hard.  Depends on what your goals are, but I would look at secondary markets outside of larger metro areas.  Right now I'm focusing a lot on Akron where decent cash flow can still be achieved.

@Alicia Marks

How about having an economic specialist covering some trends that we are likely to see continue, and ones we will not with the evolving lending & interest rates we are seeing?

@Mary M.

You seem to be quite biased yourself here???  Maybe a bit of hypocrisy?

I think your general advice of "investing out of state is a really bad idea" is rather misleading and not beneficial to someone asking about how to strategically make the best investment choices given the different options she has available.  Investing locally may not even be an option for many people.  Also, local is a very relative term.  Does that mean next door, within a mile, or within the same city/state?  What if someone lives in an area that simply won't cash flow, is in a location that doesn't fit their investment goals, that they can't afford to invest in, or an area that has legislative changes that will dramatically effect how that property is managed?  Let's be honest here, the most important aspect to have in place regardless if the property is local or not is a good team of property managers, realtors, contractors, etc.  You can build a team anywhere.  My opinion is to choose the location that fits your goals, then build your team there!  I've been investing in a few different markets over many years because I can do better investing in those locations than locally.  Some of those have been through turnkey purchases, many own my own.  Some properties have been great, some not so much, but that's all part of the game.  I've seen you post many times on here taking a stab at turnkey whenever you can.  Reality is there are some great TK companies out there, and some not so much just like with any line of business.  A quick search about companies on BP is a good way to get a sense for how they treat their clients.  The bad ones you likely won't find even have a presence on BP, but people are happy to talk about them.  Just my two cents.

@Corey Westermann

Can you explain a bit more how this works.  Interesting topic, but of course skeptical at first.

Besides Bitcoin lol, I would go back to investing in REI sooner and being more aggressive earlier on. Hindsight 2020!

@Stephen Bennett

I think in todays market most any decent home will sell close to, or at market value.  I would encourage you to work the other way around to reverse engineer your numbers.  Based on the sales price, work out the cash flow numbers to see if it makes sense, then proceed with it.  If the home is not a distressed sale, you likely are not going to get a discount on it.

There is a group of about 50+ investors all that lost money with this group lending money towards various projects along with some of their properties. They caused a lot of hurt for many people who invested with them that have not been paid back. I encourage anyone that is in a similar position to post your experience so we can collectively come up with a solution.