All Forum Posts by: Marina Wong

@Ronald Rohde

The property is located in TX, near Houston if that matters. There are several GPs. One of them is in TX, another one in MA and I am not sure about the remaining. 

TIA

Just had a meeting with the LP who brought me the news. Apparently there was supposed to be an emergency meeting last week with all GPs and LPs but somehow I did not get the email. The LP said he now thinks no other LP got the email either because no LP besides him showed up. I got from this LP the name of the owner of 711Rescue: Zak Shaik. The LP got it from a friend who is in some kind of real estate mentoring program. They were not able to get any references. One of the GPs paid for the money up front to engage 711Rescue and they need to give part of the ownership over to Zak. My preliminary research on Zak has not shown much negative things yet. So we will see if he indeed will do what he said he would do and will report back.

@Chris Seveney

I agree it is not the most professional website I have seen. Hopefully I will learn more about them when I talk to the LP who brought this up to me on Monday.

@Rene Hosman

Thank you for reaching out and give some clarification for the PP structure. I know Brandon, the part owner of BP is not syndicating on BP. I am not sure how active his company Open Door is on BP. Frankly I used to be on BP a lot, then when I started doing syndication, no one discussed much about syndication on BP so I just went to other places to learn. When I come back maybe 2 or 3 years ago, I noticed a lot of people here on BP are talking about syndication too. Anyways, I might take advantage of the free trial. I am in a large syndication group too where GPs are not even allowed. It is absolutely free. Not sure how much you know about Richard Wilson. He holds meetups for family offices around the world and those are free to LPs (at least those in the US). While I don't object to spending money to do one's due diligence, I don't know if $500 is called for when you can get very high quality syndication groups/meetups/information for free. Yes I know people spend hundreds of $ for Best Ever and other meetups just to meet other LPs/GPs, but those are in person meetups where they have to pay for a venue. BTW, how many LP members do you have currently in PP?

Yes I do like Brian Burke. He seems to be a decent and smart guy though I have not invested with him. Jeremy is more like a capital raiser in some deals and I know he is super experienced. He is knowledgeable but he has no control over the GP. When deals go south (yes it has happened to his deals) there's not much he can do.

@Jay Hinrichs

I saw Passive Pockets before I post this. Looks like it was launched in Nov 2024. While I know BP founder started syndicating a while ago, I wonder why they wait till now to launch PP. Many of the investors I know have dialed back on their private equity investment or have changed to doing debt instead of equity so it was not prime time. I guess they think these investors are accredited so a fee structure is a good model. I am not sure how many investors are in PP. Maybe they should use Richard Wilson's model and only charge sponsors. I think that would be a win-win for everyone. 

Jay, it does look like one of the strategies of this 711Rescue is to restructure the loan for their clients, but at 2x DSCR! Whoever qualifies for that probably won't need them.

Yes many GPs have experienced hardship but you can see those who really care about what they are doing and those who don't. Most will work hard when they are doing the capital call (a few of my deals did that) but some actually called to discuss the situation. I think so far all the capital calls have been successful. Some used more creative ways to handle the needs but it is still a capital call and dilutes the return (if anything left). Of course most GPs have personally put in money to keep the deals from sinking. But this one doesn't return investor phone calls or request for financials. I won't fault those syndicators that have stopped distribution or even doing capital calls if they do spend time manage the property and try to find solutions to the problems.

I suggest BP have a hall of fame and hall of shame for these syndicators. 

Quote from @Ronald Rohde:

Hi Ronald,
Thank you for the reply. Do you know of any good syndication attorney that could help us handle this? I do see the language in the PPM that would allow us to vote the manager out. Want to discuss this with fellow LPs. I am looking into the lender info. 

Quote from @Randall Alan:

@Marina Wong

@Marina Wong...

Thank you @Randall Alan. I did ask the other LP what kind of due diligence he and other LPs have made. If I have a JV with other investors and we need to pursue legal actions, I always involve the other investors when interviewing attorneys. I would not pay for anyone I did not interview myself. Thank you for the advice.

I wonder if anyone has heard of 711 Rescue (https://711rescue.com/) and can let me know if this kind of company might be able to help the LPs in case of imminent foreclosure. 

I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly. They stopped paying the lender and wanted to work something out with the lender but the time is running out (ie the management company did not do any significant improvement during the forbearance period) 

One of the LP just emailed me and said we need to raise 65k to enlist help from this company. Any info on what you think can be helpful for the LPs is greatly appreciated. If you know of any legal entity in TX that can help in a case where GP is not doing their job (maybe a branch of SEC), please let me know.

TIA