All Forum Posts by: Steve Cameron

@Steve Cameron just a heads up, many brokers only work with DST providers they are contracted with. I've heard many phrase it similar to "only work with those who let us see the books", so you want to ask if they can even work with all DST sponsors if they could. If they aren't contracted with certain sponsors, then they are most likely not allowed to even discuss all options with you.

Check with your Investment Advisor as well if you have one. Advisors are not paid in commissions for selling DSTs, unlike brokers. They also have access to the entire marketplace and perform due diligence for you before providing recommendations.

HI thanks that's a good point I did not think about, you are likely correct. It does bring up one of the main big picture questions though about DST's that there does not seem to be an independent audit - which seems crazy.

I have emailed Crew asking them who to contact regarding a/the annual independent audit - they have not responded. I also asked them why many properties dividends are being treated the same when each property should be a different project / investment with its own PPM contract, still no answer. Will see the SEC person says and update you all.

1 Vote

Quote from @David Walser:

Quote from @Harlan Cooper:

David, you said in your post that you are meeting with Kay Properties at the investor day event.

You should know that Kay Properties are the one that sold me the Versity Investments DST in Tempe Arizona called 'The Newport'. This one, just like all the others, stopped paying disbursements last year and will not return calls or emails.

Harlan,

We did buy a property through Kay but not any of the Versity/Crew properties that we own. When the monthly payments stopped last year. I looked at what Kay was offering and couldn't find anything on their website referencing Versity/Crew properties. I even asked one of the Kay guys about Versity/Crew and he had never heard about them. I think he was new to Kay (and the business) and truly wasn't aware. I suspect that Kay figured out early that there was something wrong with Versity/Crew and stopped promoting them. Dwight Kay will be at the event and I'm hoping I can get something from him.

Thanks for sharing this information about your Kay investment. This will help me strategize how I will frame my questions. Kay may be reluctant to say too much as it might put him in a legal HOT SEAT. The broker that sold us the Versity/Crew investments isn't responding to my emails any longer. I'm really hoping (in the long run) that this is a GOOD sign that these brokers KNOW they've done wrong and need to minimize their exposure.

David - the broker that helped me the other day mentioned their firm only works with DST that let them see the books (he phrased it differently) and that is not Crew, so long/short, they do not even consider offering Crew. Really feel my broker messed up here. BTW, the SEC has called me back and playing phone tag, will keep you all informed.

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Quote from @Brett Henricks:

If you are a DST investor with Crew Enterprises formerly known as Versity, and before that NB Private Capital, and have had your monthly distributions suspended I'd like to hear from you. Please PM me. Thanks to Bigger Pockets members I am now aware of six Crew DSTs that have or had their distributions suspended. Four of the DSTs are student housing in Reno, Austin, Alabama and Louisiana and two are apartments in San Diego and Houston. Crew expects some relief through the 721 UPREIT for the student housing properties but details on the execution are hard to come by. I'd like to hear about your experience. I'm curious if there are additional distressed Crew DSTs out there.

All - thanks to Bretts work a broker friend told me today that we might now have a solid SEC complaint and enough for them to start an investigation. Please file your complaint via the TCR form (make sure you get thi in writing and followup with a phone call) @ SEC.gov .
The fact that they stopped dividend payments on so many properties at the exact same time/starting many/all of them back up at the 75 % lower dividend at the same time, means they are likely in contract breach for not treating each property as an individual investment/maybe be borrowing money from one project for another, all against the contract t/c's and possibly Ponzi scheme material. Please fill out the form, the more that do this the faster the reaction. It sure would be nice to have these properties out of their hands and with some reputable sponsor.
Brett I think the most powerful chat you have accumulated is where you list all the properties and the dates that the distributions stopped. Per my broker friend, who represent DST's, this is not normal and something is going on. I will try to find your chat summary again and use it in the form submission. There is a large Reddit group also following this - we should share these steps with them as well.

2 Votes

Quote from @Brett Henricks:

Versity/Crew investors, at this point I am aware of 13 properties in the Versity/Crew portfolio that have some kind of distress going. Typically the excuses that are given are the same, 1) Property Tax Increases 2) Insurance Premium Increases 3) Adverse local market conditions. Many investors have had distributions suspended with promises to have them restarted that never seem to happen when they say they will. Other investors have had distributions restarted but at a significantly reduced rate. One of my properties (Wolf Run) was supposed to be at a 6.02% rate. I have not had any distributions since March 2024. Last week I finally got a distribution at 1.73%. Kind of sad. My other property there is no communication about. No 4th qtr report, nothing (Inspire on 22nd). Here are the 13 properties. If your an Investor in one of them please reach out, I'd like to hear your story.

Astoria- Celebration FL Apex- Orlando FL Hayworth Tanglewood- Houston TX

Inspire on 22nd- Austin TX CP Cincy- Cinn. OH Oakbrook- Baton Rouge, LA

Shadow Glen- Manor TX The Element- Sacramento CA The Walk- Tuscaloosa AL

Wolf Run- Reno NV Vintage Horizon West- Winter Garden FL AW Newport- Tempe AZ

4 & J- San Diego CA

Hi Brett - I believe you wanted us to PM you, I see one person asking how to do this, but no one answered. I am not familiar with bigger pockets interface and I also am not finding the PM button, please let us know.

Regarding this overall topic, would you or anyone on this thread know what the check/balance is for DST and the management companies? Are there independent auditors that perform regular reviews or is there potential SEC oversight and do they go after wrongdoing? If not, how would these types of investments even exist? I understand that they are treated as securities, which may help us all, but where do investors turn when they suspect foul play? I do not see this being discussed much here or in related threads so I am wondering if you have learned some of this in your potential PM's.

It seems we are struggling collectively with what to do next and if the above are not knowingly an option, would not a lawyer be able to help and if they feel there is a case, could we proceed as a group via group tort (to save costs/hire high end experienced lawyer), even if the group is small of 3-4?

Brett I assume you and others are finding it odd that we were all sold a particular property with particular selling points. Some properties were marketed with higher returns and possibly higher risk. Others were the opposite but now I assume you are finding that they all are being treated similarly if not identically where they most if not all stopped making payments at the same time and when payments are restarted they are at the same time and at the exact same lower amount. This does not seem like each property is an investment unto itself. If Crew is mixing the money between the properties, do you know if the DST contract has language protecting the investor so the managing company cannot do this? I am guessing that would be one area an SEC investigator would review?

Lastly, in my situation, my sponsor is employed by the same securities company as brian nelson. One lawyer has told me this is clearly against fiduciary responsibility but I am not sure who to take this to next, would the SEC have hard rules against this?

1 Vote

Quote from @David Walser:

The process will be expensive. At this point, I think we're just out our monthly distributions and legal fees would be expensive to try to collect that now. My long term concern is that Crew will destroy the future sales value of the properties. I would like to figure out a way to get the properties into some sort of a receivership to protect the cash flow and keep them from pilfering further. It seems that there are over 20 properties that could be in this predicament. I've connected with Brett via email and expect to have a phone chat later this week. We'll be attending an investor day DST event with a Kay Properties in Torrance, CA on April 23rd. I'm hoping to get some good advice about going after our broker from that event. At this point our broker isn't responding to my emails.

But wouldn't we talk to the SEC about potential wrong doing (this could be low cost) and or do a group tort thus sharing legal fees?

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What if we do a group tor? y

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Quote from @David Walser:

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All Forum Posts by: Steve Cameron

Steve Cameron has started 0 posts and replied 8 times.

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me

Post: Crew Enterprises DST Investors with suspended distributions please PM me