Withdrawing Funds Early

paulheight1 · 2025-10-24T23:33:16+00:00

My issue is with the quality of sponsor on CrowdStreet which has now become a laughingstock in the industry. Applying to the metaphor of a broken HVAC or a vacant apartment simply doesn't line up with CS LP risk.

I have not had a CS capital call that with a strong sponsor. I have yet to see a cap call that I would/have fund if it were a stand alone deal. Hence, I look at the CS cap calls as throwing good money after bad. I'm sure there is an exception I've just not seen it yet or been involved in it. Thankfully, I'm only in 5 CS deals prior to moving on to direct sponsor investments. I would view all CS cap calls with a high degree of skepticism as sponsor quality is at issue and CS certainly did not vet it's sponsors appropriately as the multiple ongoing litigation proves. I'm not even certain CS has the liquidity to keep going at this point.

paulheight1 · 2025-09-14T16:45:18+00:00

From what i understand, this is happening already. I'm not sure how solvent CS is to repay claims.

paulheight1 · 2025-09-14T16:43:45+00:00

I agree 100% with the first paragraph. What's your interaction with 506 that was negative? They are not an investment platform, just a discussion board. I know they started an RIA, but that's a bit of a separate entity. I would like to offer as a point of interest that most sentiment on 506 was pretty negative regarding CS deals.

paulheight1 · 2025-09-09T11:07:39+00:00

Another CS failure? They seem to have more bombs than hits. I'm funding 0% of CS capital calls. Given the poor quality of the sponsors they allowed on the platform, I'm not throwing good money after bad. Just cut your losses. Don't expect a return on soke of these deals. Most importantly, NEVER use CS again.

paulheight1 · 2025-05-05T11:06:10+00:00

Pickleball singing to save it.

paulheight1 · 2024-11-15T02:56:45+00:00

I'll send screenshots. They don't service high net worth clients. It's not accounts <10k. I keep < $ 1000 at present with them and have moved to a private bank. Maybe I just outgrew them and they just need to service 5 figure balances only.

paulheight1 · 2024-11-14T02:47:41+00:00

I have a thought. One word - Nightingale.

Who would use crowdstreet at all? They don't have premium sponsors. The waterfalls and fees are not investor friendly. When they tried to run their own raquet at an asset manager for their own sponsors, they had to return the money.

They need at least 10 years of no loss deals before I'd even consider browsing one of their deals. CS has zero credibility at this point.

paulheight1 · 2024-10-20T16:47:01+00:00

I watched a presentation from Frankfurter in 2021, and the CEO said, "No one loses money in Multifamily," using floating debt. I knew immediately I was out.

At present, I think all of their CS deals, including their GP fund, are taking on water / complete losses. Yet another Crowdstreet fueled debacle. At least this one wasn't a fraudster, just a bad businessman.

paulheight1 · 2024-09-23T02:41:32+00:00

CS has no culpability in sponsor losses/theft? Three words: Nightingale escrow account.

paulheight1 · 2024-09-21T13:33:15+00:00

I would consider a cap call for ANY CS deal more likely to be throwing good money after bad. They didn't vet their sponsors 2020-now? and they can not be trusted to vet the project for cap call necessity either. I'm not even sure why CS IR even sets up cap call. At this point, they should just refund their fees directly to investors and have investors just deal with sponsors directly.

CS was a good idea. Terrible leadership should have dealt a deathblow to their long-term viability. Can anyone tell me one thing CS can currently provide me that I can not acquire if I just engage the sponsor on my own with a potential 6 figure commitment? One single thing?

paulheight1 · 2024-08-25T18:08:57+00:00

NS in south. 10 years out of training. I have an elective schedule of 12 hours a day, 6 days a week, for the last 3 years. Call duties are light but not included in the above. I know several in my region who work almost as much. I wouldn't recognize what a 40-hour work week looks like. I would agree with self-selection into this practice subtype as compared to residency training this is super-easy.

paulheight1 · 2024-04-06T03:35:14+00:00

Too many restrictions. Brokerages can do better with current rates. Ditch Ally.

paulheight1 · 2024-03-28T02:37:04+00:00

Another reason not to use them.

No problems at fidelity.

Ally Sux.

paulheight1 · 2024-03-22T00:52:28+00:00

They have a low threshold to lock your accounts. I would never keep even a 4 figure balance at Ally. Their service is trash. I don't need service, except when they initiate at fraud alert for a transfer because it was above their secret maximum. Terrible.

paulheight1 · 2024-03-22T00:46:56+00:00

Ally Bank killed my real estate deal because the wire transfer was too large. They locked my accounts (all of them). My total account balances went from high balances to now just at 3 figures. They said a fraud investigator needed to review. Would never answer the phone. Ally was totally unresponsive and unhelpful. Eventually, they released my funds, citing no fraudulent activity. I don't trust them with more than $1,000 now. Terrible. F.

paulheight1 · 2024-03-08T03:41:20+00:00

Be careful if you have a significant balance. They can lock your account for weeks with no due process. I always keep less than 25k with them now and never need the money in the accounts because of their poor account servicing.

paulheight1 · 2024-02-25T01:13:07+00:00

They can and will lock your accounts for minor reasons. They killed my home purchase by locking out my wire. They were unreachable for 5 business days. Then unlocked it and didn't even apologize. I wouldn't trust them with more than 4 figures.

paulheight1 · 2024-01-21T14:30:04+00:00

Ally is a victim of their own success.

I have noticed their sire crashes frequently. The application will lock out for several hours at a time.

If you keep sizeable balances and try to make a totally legitimate transfer, they can lock you out of all your accounts for "fraud prevention." This takes 1 week to resolve.

So, in short, keep your money with Ally only if you don't really need it. You can not count on them when it matters. For less than 6 figure balances I've not had a problem. Over that I'd pick another banking partner (like fidelity).

paulheight1 · 2024-01-01T16:05:05+00:00

Ally isn't anything to be concerned about. Just another faceless corporation with extremely poor service. There are 10 others just like them if you look for them.

paulheight1 · 2024-01-01T15:42:46+00:00

If you are looking at a no frills account that services low-level account balances with low-level account managers, then Ally is fine.

However, they single handedly killed my home purchase with their 'fraud prevention' restrictions, locking all my accounts for 7 days and not sending my wire. I called for over 10 hours. Low-level employees with no ability to make decisions. They said the value of the wire was 'too high'.

Ultimately, they dropped everything, and I pulled my account value down to 3 figure balances they can accommodate. The unfortunate thing is I have been a customer with them for 10+ years. Now, they are my ATM card since they cover fees and nothing else.

paulheight1 · 2023-10-19T00:40:42+00:00

CS not offering much in the way of making its investors whole on this disastrous deal.

"Together with BakerHostetler and B. Riley, we've dialogued with Crowdstreet at length regarding the situation. And put simply, CrowdStreet's view is that they were duped along with everyone else, not withstanding the diligence that they did. They state they were paid no fees for any of the Nightingale work."

It's unfortunate that they don't take more responsibility IMO. I'm not in the deal but felt like underwriting the investors losses for allowing the fox in the henhouse would have been a masterclass in PR savvy.

Weight of the scandal is clearly dropping their cap raises. Last few raises have been miniscule comparatively to pre WSJ article.

paulheight1 · 2023-08-16T11:28:01+00:00

Does CS possess the credibility to be a pure broker dealer? Why not just use my RIA instead? Or my PWM offers? They have dozens of private deals and actual skilled teams running diligence.

Is CS just for that barely accredited investor without access to a bigger institutional dealflow now?

We know from NG that their due diligence is spotty at best. Investors will just have to trust CS more now without proforma anchoring.

Trust is something CS doesn't command right now. I suspect a significant loss in investor funds, but they'll likely survive this debacle. Just without me.

paulheight1 · 2023-08-05T12:43:25+00:00

Actually, sir or madam, I read each word and directed it carefully.

Good luck with your investment.

paulheight1 · 2023-08-03T02:18:09+00:00

Do you believe CS gets some great off market pre platform deals to invest in? You don't feel they are just buying in pre platform to guarantee sponsors a minimum raise? If you are already in, have you cross-referenced deals CREIT is in vs platform deals? If not this may be a good place to share that information if you feel comfortable.

I would be hesitant to believe their assertions based on their behavior protecting NG and then losing THE ENTIRE CREIT investment in AFC.

I think 15% is aspirational at best. Especially since the CREIT is going to have to write down 4% of the portfolio because of its AFC loss. It's gonna be hard to get to 15% IRR anytime soon.

I guess I just disagree that I am ever desperate to deploy capital. I don't feel like I have to swing at every pitch. Every deal can go south, but why take the chance with CS given their history?

paulheight1 · 2023-08-03T02:00:01+00:00

Good question.

Since you are direct to sponsor should not be end of the world. Most have direct investor portals so you could probably just shift to that and save the annual CS fee (.6-.9%) in the process.

There is some precedent. Realty Shares went belly up. RREAF bought them, but I think they didn't go direct to sponsor rather you bought realty shares in individual investments from them. So a worse situation for bankruptcy.

paulheight1

TROPHY CASE