With the recent demise of iFunding and RealtyShares, I thought I would share a post from within the 506 Group. Long term members have warned members since 2016 to stay away form Realty Shares. The consensus is to invest direct with experienced sponsors with long track records.
Thank you 506 Group! I invested with RS before I joined 506, and then learned from all of you who were posting warnings for quite some time about their "less than stellar oversight" and I stopped any future investments with them and thankfully those that I was already in, have closed out and I received my promised returns. So glad I joined this group, although I haven't been able to participate much, I am thankful to those who shared their views on RS. I am hoping that their wind down is done orderly and transparently for all and the sponsors are held to account for their projections.
I only have 1 POL deal left that is struggling from hurricanes, etc and POL does seem to be holding the sponsors feet to the fire with impending foreclosure, and forcing the sponsor to bring in more capital to stave off foreclosure. I feel pretty good about that one coming to a happy close for the investors.
I have a handful of FTF deals that are still struggling. I originally had the highest hopes for FTF, but have found them to be less than transparent in dealing with investors. Hoping those turn out ok, but they are not out of the woods. My biggest beef is giving the sponsor more and more and more rope to hang themselves. Not sure if they are hoping for additional deals with these sponsors, but if you have a solid personal guarantee then use it to finish out the deal. My suspicion is the personal guarantee is worthless. Time will tell.
Diversyfund - I invested before I joined 506 and thanks again group members for your views. I am half way out with them, and watch them closely. Excuse after excuse to why the projects are delayed. They keep trying to raise money in all sorts of ways, funds, future IPO schemes, etc. I wouldn't be surprised if that platform was one the next to go down.
Anyway, just sharing some thoughts and thanking you all for your input regarding sponsors and platforms. I am honored to be part of the group, although I wish I had more time to participate.