All Forum Posts by: Scott Rye

I want the fund to survive, thrive and payback LP's.... But I have lost confidence in the decisions of this group for a variety of reasons. The Ashcroft Fund 1 capital call pays back the GP nearly $10-11M for purported 'loans" they made to support the fund last year....Even though LP's were not advised/notified last year that the GP's had to make such "investment". I gave them the opportunity to do right with our funds during the initial investment (and they might make it workout), but now there are just too many red flags with the Capital Call and the new deal....Do not let the friendliness for Joe, Frank and there podcast sway you...do your continued DD and ask the questions...I will not add funds to this capital call. I will take the haircut/dilution risk, go smoke a bunch of "hope-ium" that they can squeeze blood from this turnip in 3,4,5 yrs from now...If not, such is life. By way of example, the sum of all of our Syndication investments are about 3% of our NW. Be careful how you size your investments and adjust for your level of risk and ability to withstand to loose on occasion...Good luck to all...Cheers!

 I just cannot get my head around Ashcroft getting their 11-12M back into their pockets while everybody else basically sinks.....Why the "F" do they get made whole! The video was worthless, the numbers are more inflated and egregious than their original plan. Who is selling in the SE or Texas at a 4-5 cap? If anyone know someone who knows someone where this actually happening on B to B- props, I am all ears! These guys want their 12M back and the rest of the LP's might as well pick RED or BLACK....For us, we are in numerous Synd's and generally doing well except this one. Will likely pass, expect the loss and if we get something 3-4 yrs from now, well then that's just plain luck!

We are in Ashcroft fund #1...Yes, they paused distributions but the over arching concern going forward (if you invest with them in future funds) is why they did not spread out the 3 yrs floating rate loans when they bought all the properties for this Fund....So now all 7 or 8 properties are coming due in 2024....Ouch!...this could be painful for everyone involved. Huge risk for Lp's and Gp's by not spreading out the refi timeline. Rate increases or no rate increases, it's very tight and very risky. Hopefully the coming Cap calls will help all of us pull out of this dive!....Hold On!

We are in Ashcroft fund #1...Yes, they paused distributions but the over arching concern going forward (if you invest with them in future funds) is why they did not spread out the 3 yrs floating rate loans when they bought all the properties for this Fund....So now all 7 or 8 properties are coming due in 2024....Ouch!...this could be painful for everyone involved. Huge risk for Lp's and Gp's by not spreading out the refi timeline. Rate increases or no rate increases, it's very tight and very risky. Hopefully the coming Cap calls will help all of us pull out of this dive!....Hold On!

@Allan Smith....Can you elaborate what your VA is doing for you at $3.50.hr? I am in need of someone to handle bookkeeping items, receipts, spread sheets etc...

Thanks

I am reading generally good or great news for most owners/Landlords. A few with late or partials, but that may be made up in a few months....Remember its a slow methodical journey and not a sprint! Stay your course. Cheers!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $950,000
Cash invested: $225,000

6 units building. Starting rehab, rent adjustments, utility raise, Cap Ex projects, interior refresh. Projected CF by November 2020.

How did you find this deal and how did you negotiate it?

Off market deal brought to us by our MF Broker.

How did you finance this deal?

75/25 local bank financing.....5/30 at 4.125% and .5 pts. Closed on March 20 with zero problems.

How did you add value to the deal?

Negotiated $80K off price for new exterior concrete, garage roof, new windows, electrical upgrades, interior refurbishments, boiler. Financed these funds and the bank set up account to draw for all cap ex items up to 80K with no time limit. Only need to submit invoices for payments...The local banks are far more flexible than big box banks.

What was the outcome?

Just started the project.....

We have received 100% payment from all existing tenants on-time, including new (inherited tenants) on 6 unit building we just closed on March 20, 2020, in the middle of this mess. Closing on building was no problem with Bank or Title Co in Northern Colorado. We also leased a studio on April 1 and have strong interest on a 1 bedroom unit which would bring us to "0" vacancy.....does not seem to be slowing down in Northern Colorado.

Hello BP group,

I am looking for a host to support a property near Broomfield/Superior/Louisville, CO. Already searched through Airbnb/VRBO and the usual sites and other profiles, and no response so far. If anyone is currently a host and available or if anyone here knows a host(s) in the area that would/could support, feel free to PM or send my contact info out to prospective hosts...

Thank you....

Cheers!

Scott