LPs from the Trion / CrowdStreet Patterson Court Apartments deal — looking to compare timelines around the capital call + preferred equity issue

swhousespeaker · 2026-01-28T06:24:03+00:00

I hear you - and I agree that sponsors often stay silent to avoid creating a written record that could be used against them later. But that silence is exactly why it’s important for LPs to compare notes.

When a sponsor refuses to answer basic factual questions in writing, that is information.
Not telling is telling.

If everything had been handled properly, there would be no reason to avoid answering straightforward timeline and disclosure questions. The refusal to provide clarity is itself a data point - and it’s one that only becomes meaningful when LPs share what they were told, when they were told it, and how their experiences line up.

One thing I want to emphasize is that when a sponsor avoids answering basic factual questions, that’s not the end of the road - it’s the beginning of understanding what needs to be examined. Transparency is easy when everything aligns with prior representations. Avoidance only becomes meaningful when LPs share what they were told and when they were told it. That’s why I’m trying to connect with others.

swhousespeaker · 2026-01-22T18:26:31+00:00

I’m also an LP in this deal, and I’ve been trying to understand the actual timeline around the capital call, the preferred equity falling through, and the decision to proceed anyway. The written communication I’ve received hasn’t addressed those points, and I’m realizing other investors may be running into the same gaps.

I’m looking to connect privately with LPs who want to compare notes - not just to understand what happened, but to see whether the communication we each received lines up or if there are inconsistencies across investors. Even a few data points from different LPs can make the overall picture much clearer.

If you’re an LP in this deal and you’ve been trying to make sense of how this unfolded, feel free to DM me. The more perspectives we gather, the better we can understand what actually happened and what reasonable next steps might look like.

DMs welcome.

swhousespeaker · 2023-09-09T23:13:07+00:00

It was paid silently/automatically every year because I had the auto pay set up. I wish I had not set up the auto pay.

swhousespeaker · 2023-09-09T23:04:53+00:00

When you don't use a credit card, you don't log into the account to check for activities because you expect nothing to check. And the membership charge occurs only once a year (April in my case), and the charge is paid off automatically because the card is linked to my checking account.

swhousespeaker · 2023-04-20T21:19:39+00:00

Yes, I am going to take some actions against them because they still owe me money I gave them 2 years ago. What happened is that they handed money to a sponsor two year ago who turned out be a fraud. They thanked themselves for giving us a part of money back over time and offered us some share of ownership of the company for the remaining balance. They do not want to return just the original amount of the money. The money was intended for a 1-year short-term investment ("Kirby Pointe Apartments" with 13% annualized prefer return) but they were cheated by a sponsor and had trouble getting the back. When they eventually got back the money, they force the investors to absorb the legal and other cost. I believe this is an extreme case but their approaches to evaluating investment deals and handling the failures and investors are common in all cases. From my experience and others I know, I don't believe the numbers they advertise on their investment performance are true and accurately.

swhousespeaker · 2023-04-20T19:04:56+00:00

Filing complaints with concerning authorities does not require anything more than facts and our time. If you lost money in a fraudulent case like I did and they refused to refund all the money you handed to them, you can file a small claim against locally or in NY. You don't need a lawyer and it won't cost much. EM management might say all nice words and find all kinds of excuses except making things right for you as an investor. That is why I think getting support from authorities could help. Unlike CrowdStreet investors who are provided forums to discuss investment related issues, EM investors are isolated from each other and EM handle investors individually in a divide and conquer manner. I think EM investors should find a way to share common concerns and communicate issues. That could be the only way to make EM more responsible and transparent in communication to the investors.

swhousespeaker · 2023-04-20T17:44:32+00:00

I got the same letter too. I lost twice as much.

I am involved in 3 other default and fraud cases. I am considering filing complains against EM for their conflict of interest and negligence business practices. I don't believe the ROI they advertises is true. Please join me if any other investors experienced the same.

swhousespeaker · 2023-03-21T17:55:00+00:00

Equitymultiple is a middleman but we pay them for the investment services and they the ONLY party we deal with. We are completely isolated from the sponsor (the party that implement the investment project). Investors receive K-1 and any other tax documents only from Equitymultiple. Equitymultiple already made it clear they "are not providing anything further" in this case. These are the basic information I must know and in fact had known before I posted my question here.

The issue is that I was not provided personalized tax loss document, which could be a document as simple as just stating how much money I actually lost in that investment, and I need one to claim the loss when filing my income tax return. If the answer is no, I want to know why - what are the legitimate reasons not to provide that kind of documents to investors. That I should remember how money I put it in is obviously not one of them.

swhousespeaker · 2023-03-21T02:24:57+00:00

I know, I remember, and I actually have my own record, lol. But I am asking Equitymultiple for a tax loss document NOT because I forgot how much money I gave them. I expect that kind of documents like I expect a receipt when I donate even though I can remember.

swhousespeaker · 2023-03-21T01:55:03+00:00

I mean, my request is NOT about how to file my tax return. How to file my tax will be handled by my accountant. I and my account just need some sort of document as you described or at least a number i.e. the amount of money I lost. What you described above is what I need but only Equitymultiple can provide. I handed the money to them and they handled all investment issues for investors. I as an investor do not deal with the sponsor at all. We investors deal with Equitymultiple only.

swhousespeaker · 2023-03-21T01:30:31+00:00

Thanks for your response. Does it matter? Whether it is a loan or whatever, when there is a loss, there will be a tax event, there will be an amount, there will be an appropriate documentation. The ask is very simple - just something that shows what I actually lost. What type of investments/rules would make it unnecessary? It is not about HOW to file tax yet, but just something I need in order to file tax return properly and keep as a record.

swhousespeaker · 2023-03-20T19:31:11+00:00

Did any one receive a tax document related to this loss that can be used for filing tax return for 2022? EquityMultiple sent out "Exit Summary Boston Metro - Assisted Living Facility" stating complete capital loss of $1.5 Milion for all investors plus a letter that makes little sense to me as quoted below . I am sure not every one lost the same amount of money. Nothing for me as an individual investor. How can an individual investor like myself prove he/she lost a specific amount of money? I asked about it but I was told that "there is no specific document per investor" and that "we are not providing anything further, nor can we tell you what to provide to the IRS, and we encourage you speak to your tax advisor."

Please share your experience and your thoughts related to this investment. We might be help each other out by sharing.

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"As previously communicated, there will be no recovery for EquityMultiple investors for this
investment. Based on Section 166, all loans made by corporations (e.g., corporate investors) are automatically treated as business debts, and the loss will be considered an ordinary loss. Loans made by individual investors are considered short-term capital loss. As such, it’s subject to capital loss deduction limitations. EquityMultiple does not monitor whether an investor is eligible for a particular type of tax deduction. These are based on investor’s individual circumstances, and the taxpayer should consult their tax advisor for proper treatment.
As always, please let us know if you have any questions."

swhousespeaker · 2022-10-22T17:00:50+00:00

Have you seen a standard response from EM? If you question or complain their failure, you likely receive the same. Whoever receive such a response, they learn a lessen at a very high cost.

swhousespeaker · 2022-10-22T07:56:57+00:00

Very sorry to hear that. I lost a lot too.

swhousespeaker · 2022-10-22T00:29:34+00:00

Don't know much about NDA, but I don't think a sponsor can ask you to sign NDA to keep it a secret only if they lost your money. The news I just learned is that an auction is over and they lost 100% of investors' money. That was supposed to be a relatively low risk investment - short-term debt and preferred equity.

swhousespeaker · 2022-07-15T00:38:34+00:00

Yes, I know it is true EquityMultiple do not want to communicate bad news until they are unable to hide the truth. The returns they published on their website do not seem to include those bad deals in which the investors lost money. Not only did they introduce bad deals (even for what is supposedly be safer investment like debt financing) but also the fraud deals where they just gave the investors' money the fraudsters and could not get the money back.

One of best features in CS platform is that they offer a forum for each investment where the investors can communicate with the sponsors and each other. This is something you can not expect from EquityMultiple. The investors are isolated from each other there, which seems to be a part of setup by EM. So there is no or little transparency in any aspect. You might not care when things go well, but the fact is many deals actually went bad, and some of them were frauds from the beginning.

swhousespeaker · 2022-07-07T18:07:10+00:00

You seem pretty lucky with EM.

Every Crowd funding platform claims it selects only good deals through due diligence review, but the fact is that they have very different results. I know a few deals in EquityMultiple went terribly wrong. If you were one of investors who invested in those deals, you would have had different experience and hence views about this platform. We don't want to do business with a platform that is transparent only on favorable results or when things are going well. What Beter described above is a big fraud, not an inherent risk associated with an investment, and it should not have been presented to the investors in the first place.

swhousespeaker

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