Partners gotta eat$458,000 just to run that business?!
Jay Morrison And The Tulsa Real Estate Fund Lost Money In 2019-UPDATE: NOW SHUT DOWN
- Thread starter ☑︎#VoteDemocrat
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DigitalDopeman
All Star
I haven't watched the video yet, and would like Jay to be successful with his fund, but what kind of real estate deals was he doing that caused him to take a loss and what did he use to justify him paying himself over $400k while taking losses?
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DigitalDopeman
All Star
I would like his fund to be successful but this is a good question? Does he own any properties outside of the Tulsa Fund? and how did he lose money investing in real estate, what kindve of deals did he do to take a loss?
Portfolio – Tulsa Real Estate Fund
It looks like he’s doing some pretty crappy deals. Some might pay off in the long run, but why is he buying single family homes? Why is he using the funds money to invest in some other company’s property, instead of using that money to buy a property that they own? Why spend 3.2 million on an office space? Why pay your wife a six figure salary?
I get the whole buying back the block thing, and investing in the hood, but if it’s my money on the line, I’d want them to be buying the best properties possible. If you wanna do riskier investments, do it after you have a solid portfolio of real estate.
DigitalDopeman
All Star
dude could be investing in apartment buildings, hotels, storage units etc. and try and get them for under market value and improve on them and flip it for fast returns.
It’s not.
Not for the amount of assets he has under management.
I’ve said extensively in his other threads.
What he’s doing is not a scam.
That fact that the fund won’t generate an operating profit is not out of the ordinary because the major gains for real estate funds comes from appreciation which won’t be chrystalized until a sell off of the portfolio.
The finesse is the exhorbitant management fees that he’s charging. At most, with the size of his fund, he should be charging .5% of assets under management and increase once he gets in more capital.
He’s charging 5.5% and then 50% of profits. That’s astoundingly ridiculous.
I’ve worked on funds that had $10billion of assets under management and only charging the standard 2/20 and investors would be bytching about that. From the last time I looked, he barely had $9 mil in assets that was being managed and he’s charging 5.5/50. That makes no sense.
He has no background or history or track record in portfolio management to justify those fees. nikkas go to Harvard and Stanford just to be able to justify charging 2/20 to investors and here this nikka was in jail but 10/15 years ago.
couldn’t he have bought up a bunch of those properties in places like philly and Detroit and rehabbed em and eventually flipped em for a profit?
collecting half a mil in fees while taking losses and then saying investors cant pull their money out of the fund seems like some Enron shot to me.
DigitalDopeman
All Star
with the money people gave him, he could've invested in several things and turned a profit. I used to do business with an asset manager for this hedge fund in SC and they would have me look for only Storage Unit properties that they could buy for a low price. How is that the investors cant pull their money out, but he can pull out $400k to pay himself and how did he decide that he should get $400k?
Kornball The Conqueror
Superstar
why does this site always promote scam artist?
This is the crux of the issue I see. Because he targets a novice investor demographic, they’re not asking the right questions. They don’t know what they don’t know. So, to be fair to Jay, most of the criticism that is being levied against him are honestly par the course for the industry.
A more knowledgeable investor is not going to be asking why they can’t take their money out when they want - knowing that they are investing in an illiquid asset like real estate. They are not going to be asking why they can’t see the properties he’s potentially going to be investing in - seeing that the purpose of putting your money in an investment manager is to allow them to make the decisions so you don’t have to. Which is why you pay attention to portfolio managers investing strategy and style, return history, and educational and professional pedigree. These are common sense basic investing things. But since he targeted an uneducated demo, he unfortunately gotta deal with unnecessary questions.
The issue is both him and his investors.
You have to read his 10k. His management fee is taken as a percentage of capital intake. Capital comes in, he takes his fee off top from that. Which is different from the funds that I’ve seen that charges management fees pro-rata each month which fluctuate monthly based off of the size of the fund in that particular month.
The $400k comes from the fee he decided to charge investors. Rightfully or wrongly, Investors agree to that fee when they make the decision to invest in the fund. Unfortunately, that’s where he is finessing his investors.
This guy is doing the same thing, and he’s sending people money every month...
https://youtu.be/0pso65qjAvw
https://youtu.be/0pso65qjAvw
That’s the internet/internet forums in general.why does this site always promote scam artist?
This guy is doing the same thing, and he’s sending people money every month...
He’s working with accredited investors though. But he does say that he is opening up to nonaccredited however the minimum investment for his fund is $10,000 up to 10 million.
I just don’t understand what kind of return people who invested $500 in Tulsa are gonna get from Jay... even if he double their money. whats he gonna send $25 monthly checks to them? In one article I read it says the biggest investment was $40,000 so you know the majority of people put closer to the minimum in.
That’s just too many mouths to feed on top of his wild management fees. They probably just happy to break even.
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What success???? The fund has yet to turn a profit, and won't for the rest of the year
You sound like the kind of dude to call nikkas c00ns for not unanimously cosigning Rent Um Spoons
We should support good ideas and businesses from black people.... not just any and everything
This guy is doing the same thing, and he’s sending people money every month...
Wait till everyone tries to pull out all their money at once
Classic ponzi scheme
Hacksaw Jim Thuggin
Superstar
What success???? The fund has yet to turn a profit, and won't for the rest of the year
You sound like the kind of dude to call nikkas c00ns for not unanimously cosigning Rent Um Spoons
We should support good ideas and businesses from black people.... not just any and everything
the coli.com yall
reading comprehension is at an all time low
