Tulsa Real Estate Fund manager gives tour of recent apartment complex acquisition

[hashmander]

when the first thread showed up, my biggest question was the whole we're going to make money while combating gentrification bit. i didn't like that because i feel it's a way of pulling the wool over people's eyes. an aspect of gentrification isn't white landlord kicks out black tenants. it's landlord raising rent to make more money in a market that has a lot of prospective tenants with money. the only way this apartment complex that he bought is going to be a winner for his portfolio is if he raises the rent and targets a richer client base. you can't combat gentrification and produce great ROI. the two are at odds with each other.

 

[invalid]

so why doesn't he just say this then.

Language like that is used because of the investor demographic. You typically have to state things plainly when your pool of investors have rudimentary investment knowledge. It’s a legal CYA and an act of being transparent to an otherwise oblivious investor base. My guess is that most of them probably don’t even read the audited financials. A lot of the “risk” language used in the SEC report are really inherent risk to the industry and most sound investors will understand that. But again, they have to explicitly state this in case some newbie investor wants to know why they can’t have a say in picking the pooled fund’s investments. Investors don’t have that say. That’s up to the discretion of the manager, which is why you are paying them to make those decisions for you.

 

[Booker T Garvey]

Language like that is used because of the investor demographic. You typically have to state things plainly when your pool of investors have rudimentary investment knowledge. It’s a legal CYA and an act of being transparent to an otherwise oblivious investor base. My guess is that most of them probably don’t even read the audited financials. A lot of the “risk” language used in the SEC report are really inherent risk to the industry and most sound investors will understand that. But again, they have to explicitly state this in case some newbie investor wants to know why they can’t have a say in picking the pooled fund’s investments. Investors don’t have that say. That’s up to the discretion of the manager, which is why you are paying them to make those decisions for you.

boy that sure is a long way of saying "because nobody would invest in a company that spoke honestly like that"

 

[Booker T Garvey]

when the first thread showed up, my biggest question was the whole we're going to make money while combating gentrification bit. i didn't like that because i feel it's a way pulling the wool over people's eyes. an aspect gentrification isn't white landlord kicks out black tenants. it's landlord raising rent to make more money in a market that has a lot of prospective tenants with money. the only way this apartment complex that he bought is going to be a winner for his portfolio is if he raises the rent and targets a richer client base. you can't combat gentrification and produce great ROI. the two are at odds with each other.

that's a part of the hustle, even the company is named after an event to tug on black peoples heart strings.

it's all in the SEC report though, the dude is running a clear cut hustle to enrich himself. no sensible person would invest w/him after reading that.

 

[invalid]

boy that sure is a long way of saying "because nobody would invest in a company that spoke honestly like that"

I think you’re kind of confused.

It is better to explicitly state to investors..,..

“Investors can not evaluate investment decisions before we make them.”

vs.

Not saying anything at all because you assume the investors know that this is how investment management works which is the case for most legitimate funds.

In this case, Jay was being transparent about what an investor can and cannot do because he’s making an assumption that there will be many people who are new to investing.

Again, there are red flags all over this but some of the things you specifically pointed out are not noteworthy.

The biggest things that are noteworthy are the things that the actual auditors cited as risk that will pose as obstacles to allowing the fund to continue its operations.

 

[☑︎#VoteDemocrat]

something about this just irks me.

the number of investors makes any profit functionally negligible. it just seems scammy.

 

[hashmander]

that's a part of the hustle, even the company is named after an event to tug on black peoples heart strings.

it's all in the SEC report though, the dude is running a clear cut hustle to enrich himself. no sensible person would invest w/him after reading that.

all kinds of warning signs go on off in me when people are trying to pull at heart strings.

and btw, when i say richer i don't mean rich people, just people richer than the existing tenants.

there are only two ways to make money in the apartment game: mid-high rent with amenities and up keep or relatively low rent and no upkeep (slum lord). i guess a slum lord does combat gentrification.

 

[Booker T Garvey]

I think you’re kind of confused.

It is better to explicitly state to investors..,..

“Investors can not evaluate investment decisions before we make them.”

vs.

Not saying anything at all because you assume the investors know that this is how investment management works which is the case for most legitimate funds.

In this case, Jay was being transparent about what an investor can and cannot do because he’s making an assumption that there will be many people who are new to investing.

Again, there are red flags all over this but some of the things you specifically pointed out are not noteworthy.

The biggest things that are noteworthy are the things that the actual auditors cited as risk that will pose as obstacles to allowing the fund to continue its operations.

uhhhh not confused, you're just changing the topic of discussion.

the point is that Jay morrison doesn't speak about his business in the way presented in this document NOR the way you're explaining it

in fact, show me a video of jay morrison saying what YOU'RE saying right here...i'll wait.

 

[ATownD19]

So are they just updated by one mass email? All legitimate investment funds worth their salt dissiminate investor statements to each individual investor that detail the P&L for the month, the ROI, and the NAV. Because this a pooled fund, I can understand if they can’t detail individual investor position but they should at least have a listing of all investments held under management, and associated expenses incurred by the fund and NAV. This leaves little room for guesswork. Do Jay and the CFO have any prior experience working in investment management?



A lot of what you posted are def red flags, but not everything is noteworthy, for instance.



This is just the nature of investment management. Investors rely on the expertise of the investment manager to make those decisions for them. Which is why investors pay fees because essentially the manager is doing the work on behalf of the investor. Which is why investors should do their due diligence in whom they what to manage their investment.

Again, you pointed out lots of red flags but what I quickly skimmed over, that one wasn’t one.

But.

As a former Big 4 auditor, this is a death knell.

Our independent auditors included an explanatory paragraph in the report on our 2018 financial statements related to the uncertainty in our ability to continue as a going concern.

Auditors don’t give out this type of opinion on the regular. It means death of a company is IMMINENT. The fact that this is a new company is not an excuse.

These are the factors the auditors list.

Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to:

our ability to effectively deploy the proceeds raised in the offering (the “Offering”);

our ability to attract and retain members to our online platform;

changes in economic conditions generally and the real estate and securities markets specifically;

limited ability to dispose of assets because of the relative illiquidity of real estate investments;

intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space;

defaults on or non-renewal of leases by tenants;

increased interest rates and operating costs;

our failure to obtain necessary outside financing;

decreased rental rates or increased vacancy rates;

the risk associated with potential breach or expiration of a ground lease, if any;

difficulties in identifying properties, and consummating, real estate acquisitions, developments, joint ventures and dispositions;

recent subpoenas from the Securities Exchange Commission and Federal Bureau of Investigation which have used Company resources in order to comply and of which the outcome of such subpoenas is uncertain.

That is too much risk for black investors who are most certainly giving up money that they can’t afford to lose.

Investors rely on the opinions auditors give on financial statements in making their investment decisions. Any sound investor would have jumped ship after the auditors gave the opinion of their uncertainty of the funds ability to continue as a going concern. Like that is legit investing 101 the things you look out for as an investor. Things that should give an investor pause.

I don’t know, I think people who don’t have a modicum of financially savvy should hold off on investing until they up their financial intelligence because they are just going to lose money.

The details you’re looking for is listed on the website: Tulsa Real Estate Fund – The People's Fund

If you would like more info that isn’t listed then you can contact them direct.

Don’t feel pressured to invest. He says if you can’t or choose not to, all he asks is that you wish them the best of luck.

 

[Squirrel from Meteor Man]

The marketing and wording around this fund were both clear red flags. It’s basically using other people’s money to line the pockets of himself (and his wife, who’s an employee of the fund) with very minimal risk. Smart for a businessman, but very shady. I wouldn’t have invested in it, but everyone is different.

Investors and businessmen don’t move like a Jay Morrison; hustlers and crooks do. Fast talking, double talking, poverty shaming, finding soft spots in the demographic (Tulsa and Black Wall Street, “support black business”), and a lack of a track record in this realm are all bright red flags.

Of course he’s buying property; that’s not the hustle. The hustle is that he’s getting paid (a salary) regardless of if these properties ever turn a profit, while he’s telling the SEC this business investors probably won’t be paid. That’s the nature of investing, but he solicited the money under the guise of establishing a black wealth base, when it’s little more than black people donating to fund his portfolio.

Once again, not illegal, but not exactly honorable.

Don’t trust a person who wanted to charge people to watch his wedding via an online stream to do right by you.

 

[DUCKED_OFF]

Don’t trust a person who wanted to charge people to watch his wedding via an online stream to do right by you.

And don't forget he was begging people for honeymoon funds

But he is mr" swaggy and rich rich"

 

[TL15]

Good for them

Dude CAKED though by doing an IPO because they already secured 1/2 the money for their team...

His real estate school made the INC magazine list for a second year in a row

No diss to him or you though but INC is a low key scam after the first year, and they have a GREAT hustle.


They tab you as an INC company and let you put their badge all over your shyt the first year and then the second year they tell you that you gotta pay up to keep using their trademarked material (the logo). So most INC list companies (though doing well) are actually paying to stay on the list

 

[invalid]

uhhhh not confused, you're just changing the topic of discussion.

the point is that Jay morrison doesn't speak about his business in the way presented in this document NOR the way you're explaining it

in fact, show me a video of jay morrison saying what YOU'RE saying right here...i'll wait.

I don’t know shyt about him and this investment fund. I’m commenting specifically on some things you pulled out of that document that are not noteworthy. I agreed with you that there are red flags. I disagreed on what you think some of those red flags are. What I quoted from you is not one of them.

As someone that worked as a Big4 auditor and audited financials of hedge funds and investment banks and also prepared financials of hedge funds and investment banks, I was simply trying to explain that legal language to you because it is has now become quite evident you don’t have experience parsing through legal financial documents and your taking the discussion with me completely somewhere else.

The details you’re looking for is listed on the website: Tulsa Real Estate Fund – The People's Fund

If you would like more info that isn’t listed then you can contact them direct.

Don’t feel pressured to invest. He says if you can’t or choose not to, all he asks is that you wish them the best of luck.

Do you invest with him? If so, can you link the 2018 audited financial statements for the fund?

Edit: @ATownD19 Nevermind, I pulled them from the SEC website.

 

[⠀X ⠀]

Hopefully they'll touch on some of these issues. It drops later today

 

[videogamestashbox.com]

Good look but I'd be cautious about putting details out about my properties. I still remember when folks were sabotaging Umar by calling property owners/auction house trying to shut down his moves ....then got the nerve to complain about what he has/hasn't got done.

• That's like me taking up pizza money and instead of you saying "I'm good" or "no thanks" you instead say "he is a scammer there is no food".
• Then when I go to get the pizza you call the shop owner saying don't sell him any food that guy is a scammer.
• And after going through hoops with the owner the pizza shop is now closed. Now you got the nerve to talk to me about "were is the food?", "food don't even cost that much, you a scammer,etc etc
• I say fool I was getting "pizza" not generic "food" now we have to wait until another pizza place open cause of your fukkery.
• And the whole while we waiting to gain access to the pizza spot you sit there asking where is the "food", calling me a scammer, knowing damn well there is no pizza spot open cause of your fukkery.

These folks are the worst ...especially knowing they never do such shyt enmass to white folks

Either way, I have no dog in this fight so carry on.​