I did all my other due diligence like asking for paystubs, W2s, Tax returns, Employment verification, bank statements etc etc and did not see any red flags overall.

I instead look at it as a potential red flag.

This is more of a reach goal for me since I am still in my "collect 4 green houses before trading up to a red hotel" stage, but I thought I would ask the hive mind anyways.

I’m surprised that in itself isn’t viewed as a red flag. 

Thats when I saw the $450K asset management fees, even though the fund is $450K in the red.

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

That says huge red flag to me.

I gravitate towards "red states" given the landlord-friendly laws and relative ease of evictions, which unfortunately are unavoidable in the buy and hold game.

Thecompany continues to advertise on Google with paid ads.Source: Google Ads for Norada Capital ( Link )Summary of Red Flags and Conclusion:This report is not intended to be an exhaustive account of every material misrepresentation and apparent securities violations, but it provides more than ample evidence to show the following critical issues:1.

They give no official closing documents, just internal documents that I'm guessing are fraudulent. 170% profit in two years is a HUGE red flag🤯