All Forum Posts by: Paul B.

Quote from @Nate Marshall:

Daily Mail is about as junk as it gets. The UK is quickly becoming a joke when it comes to free speech. Hopefully it will be better when Prince William takes over for King Chuck. 

I wonder why they even picked up the story. Maybe just some sort of "look how dumb those Yanks are" thing?

There wasn't really anything new in this story. They seemed to just rehash the WSJ article but put a more negative slant on it, and probably drew some info from the Real Deal article too. Apparently Brad did email comments for this article, but I didn't really see anything that wasn't already published elsewhere. Full disclosure: I am a student of his program. I found value in it, so I have renewed my membership each year, but the students definitely got more aggressive in the underwriting the last few years and now those deals are paying the price. Having said that, I haven't lost any money yet. 

Quote from @Jay Hinrichs:

Quote from @Paul B.:

Quote from @Amanda K.:

Hi, is anyone investing in their litigation support?  Or considering the membership buyout option?

I put my name on the list for a buyout. The amount I invested was small enough that a 50% haircut is tolerable. I just want to move on. If nothing else, I am sick of paying the quarterly fee to my SD IRA for an asset that might go to zero.

do you think you will get bought out realistically .. is the company sitting on cash to allow them to do this ?

 My understanding was there was some outside 3rd party, maybe not arms length, could have been someone involved somehow. I don't remember who it was or why they think it's a good deal for them. No, the company itself definitely does not have the cash to buy anyone out. There would have been a "run on the bank" a long time ago if they did. Some investors requested redemptions a year or two ago (before we learned of any trouble) which were not fulfilled.

Quote from @Jason Monaco:

Is the buyout actually going to happen…I have heard it mentioned that it was an idea being talked about but I have not heard that it was a for sure option that will be available.

 I think there was a tentative offer from an outside party...I'm speaking from memory. I doubt it's a sure thing. That's why I said I "put my name on the list." I dunno...

Quote from @Amanda K.:

Hi, is anyone investing in their litigation support?  Or considering the membership buyout option?

I put my name on the list for a buyout. The amount I invested was small enough that a 50% haircut is tolerable. I just want to move on. If nothing else, I am sick of paying the quarterly fee to my SD IRA for an asset that might go to zero.

Quote from @Jason Monaco:

Quote from @Eddie King:

Anyone know anything about K1s for AHP?  I'm guessing at this point we shouldn't expect them anytime soon.

 I talked to Sean at AHP. he said Jorge was uploading them last Friday, then it was Monday, then it was Tuesday, Wednesday, Thursday, etc. He'll tell you anything you want to hear just to kick the can down the road. I have no idea what to expect at this point.

 Last year (before sh*t really hit the fan), there were monthly webinars. I swear there were at least two webinars (a month apart) where K-1s were coming "next week." We did eventually get them, but again, things were still looking okay last year. 

On the last webinar, we heard about a fund for legal fees, which would be starting up in a couple weeks (March 20). It was supposed to offer something like a 15% return, but obviously would pay nothing if no money was recovered.

yikes, if I am going to lose money, I'd rather know now. I am paying quarterly fees to the self-directed IRA that I only opened to invest with AHP. 

Quote from @Justin Moy:

Anytime something is done because it's "the only way to get financed" is usually a troubling statement. 

They could have underwritten with a Fannie or Freddie loan, but then they wouldn't have been competitive in their offer (due to the lower leverage being offered). Since I am strictly an investor, that isn't my problem. I'll wait until I see a deal I like. But the folks who have made syndication a full time job, they need to keep doing deals to stay in business. Not with my money though.

The 40% vacancy stress test sounds good, but they might not have taken into account a significant increase in mortgage payments in those calculations (due to higher interest rates and expiration of the rate cap). They might have just reduced income by 40% but kept everything else the same, when in reality a major expense (debt service) skyrocketed.