Jan 24, 2019

Reporting is good although it is easy to lose track of the main points. The gory details can easily get overlooked unless you scan the report very well. Many of us have had concerns for a while about how the properties are performing and things may be unraveling now. I am in four deals, so more than most other investors and three of the four deals have underperformed proforma for a while. Until last month only one deal (Somerset/Stratton) had stopped distributions (reason given was pending sale but I think there could be more to it) and this month two more deals (Valencia and Spring Creek) will soon be stopping distributions, the reason given is to get additional loan or do a refinancing to a fixed rate loan. My main issue is that I (like others) have seen red flags for a while and when I expressed my concerns to Paul a couple of months back, he pretty much brushed them off. Also, he mentioned about the refinancing and likely knew about additional loan but didn't say anything about distributions being planned to be stopped.