Time for some proper due diligence/ independent auditing in our communities

[ari3]

I dont know if this is the right thread...

A nice attack by the NY Post. It seems theyre always extreme, either to the right or to the left on certain issues.

https://nypost.com/2023/06/08/brooklyn-rabbi-slammed-with-voter-fraud-accusations-in-catskills/

worthy of discussion but no it's not the right thread.

[Alexsei]

I dont know if this is the right thread...

A nice attack by the NY Post. It seems theyre always extreme, either to the right or to the left on certain issues.

https://nypost.com/2023/06/08/brooklyn-rabbi-slammed-with-voter-fraud-accusations-in-catskills/

Typical tabloid like the infamous slumlord article

[YitzyS]

I dont know if this is the right thread...

A nice attack by the NY Post. It seems theyre always extreme, either to the right or to the left on certain issues.

https://nypost.com/2023/06/08/brooklyn-rabbi-slammed-with-voter-fraud-accusations-in-catskills/

Crazy how the headline is so sensationalistic and twisted. If you read the article, you see that a judge agreed with him, so even if it's overturned in appeal, he's not just some wacko rabbi. Also, the claims that he wants to force religious rule in the town is laughable, and the piece doesn't back it up besides for random hearsay.

[Lurker]

I dont know if this is the right thread...

A nice attack by the NY Post. It seems theyre always extreme, either to the right or to the left on certain issues.

https://nypost.com/2023/06/08/brooklyn-rabbi-slammed-with-voter-fraud-accusations-in-catskills/

The comments are something else.

[jye]

What about the quarterly distributions?

Many recent deals especially with bridge loans haven’t been cash flow positive so the only quarterly distributions would be money siphoned off of the next deal aka ponzi.

[123-Rosh]

I feel like I'm the only one who doesn't know any details about all the scams and ponzi schemes. Where can I find details?

[whacked1]

I dont know if this is the right thread...

A nice attack by the NY Post. It seems theyre always extreme, either to the right or to the left on certain issues.

https://nypost.com/2023/06/08/brooklyn-rabbi-slammed-with-voter-fraud-accusations-in-catskills/

Ha ha , they used to pay bucherim when i was in yeshiva to get votes. It was good money. it was called "Catskill alliance"

[jye]

What about the quarterly distributions?

Hearing of some quarterly distributions that have stoped recently.
 

[ari3]

Hearing of some quarterly distributions that have stoped recently.

Not uncommon right now. This does not denote fraud or mismanagement. Many properties with floating rate mortgages taken out or refinanced in 2021 had their debt service payment go up. Additionally many properties that need to refinance soon stopped or reduced distributions to build up reserves for the higher rates. Additionally any properties caught up in the fraud of --- are going to be deferring distributions even if the property is doing ok till things get clearer.

[knowitall]

Not uncommon right now. This does not denote fraud or mismanagement. Many properties with floating rate mortgages taken out or refinanced in 2021 had their debt service payment go up. Additionally many properties that need to refinance soon stopped or reduced distributions to build up reserves for the higher rates. Additionally any properties caught up in the fraud of --- are going to be deferring distributions even if the property is doing ok till things get clearer.

While not indicative of fraud or mismanagement, in 9/10 cases it's due to sponsor inexperience. Most of the guys who have been through multiple market cycles did not use floating bridge debt, especially not late-cycle once valuations were so high.

[VacationLover]

https://www.theyeshivaworld.com/news/general/2199063/mailbag-ponzi-schemes-and-investors-in-our-community-a-warning-to-all-involved.html

[chevron]

Friend of mine told me he's not surprised, says half the frum people he meets, won't invest unless 20% guaranteed return..

Never mind that in many industries it's illegal to guarantee any type of return

[mevinyavin]

Friend of mine told me he's not surprised, says half the frum people he meets, won't invest unless 20% guaranteed return..

Never mind that in many industries it's illegal to guarantee any type of return

A heter iska is essentially an investment with a guaranteed return, isn't it?

[chevron]

A heter iska is essentially an investment with a guaranteed return, isn't it?

I'm talking about an investment return. Many industries cannot promise a certain %,

[knowitall]

Friend of mine told me he's not surprised, says half the frum people he meets, won't invest unless 20% guaranteed return..

Never mind that in many industries it's illegal to guarantee any type of return

I concur. Maybe it’s better now, but last year, many people told me “I can easily make 20% a year in Real Estate.”

[avromie7]

Friend of mine told me he's not surprised, says half the frum people he meets, won't invest unless 20% guaranteed return..

Never mind that in many industries it's illegal to guarantee any type of return

The big issue is not the rate of return, it's the guarantee. If things are doing great and deals are making 20 or 30% return thats fine. As long as you know that can change when things turn south. If someone guarantees the return and the economy starts to collapse like we're seeing now, the guy who guaranteed it needs to cover the missing return. That's how it turns into a ponzi scene.

[HowYaDoin]

Flavor of the week

https://mishpacha.com/hot-deal-or-hot-air/

[Traveler718]

Friend of mine told me he's not surprised, says half the frum people he meets, won't invest unless 20% guaranteed return..

Never mind that in many industries it's illegal to guarantee any type of return

A guy from Lakewood called me (an investment advisor) and asked if I guarantee 50% annual returns. Who settles for 20% when you can find someone to "guarantee" you 50%?

[thaber]

I had previously posted this on the psa thread where these things were discussed, but seems this is the new water cooler

https://www.theyeshivaworld.com/news/general/2199063/mailbag-ponzi-schemes-and-investors-in-our-community-a-warning-to-all-involved.html

2) my two cents in the discussion above, as someone in the industry -
A. The law requires accredited investors for a reason. That is circumvented one way or another in many cases and shouldn't be.
B. Even the most honest syndicator will mess up a lot of people if they don't have proper precautions in place. Anyone who financed or refinanced with a floating IO loan in 2021 is having a major cash flow issue now in the best case scenario, or selling at a loss / foreclosure. I see those deals hitting the market every day. Forget paying returns.
C. Those who have lived through previous cycles were generally more cautious and survived BezH. At the ecore 2021 conference, (I didn't go but watched the headliners) this was the direct warning given by sternlicht and Slone and others.
D. The setups and projections in those years had the same problem, assumptions that 3% interest rates are here to stay, and instead of locking rates and paying down principal, they went for max cash flow and instant gratification.

That might have been. 04

[chevron]

When TSLA was $110, I asked various investment advisor friends if I should buy a bunch.

Friend quoted Bernard Baruch "It is far more difficult… to know when to sell a stock than when to buy"

A month after, it was $210

I'm no genius. I might have sold at $120.. I might be holding now still

I found these other 2 quotes;

Always keep a good part of your capital in a cash reserve. Never invest all of your funds.
Bernard Baruch

Don’t try to be a jack of all investments. Stick to the field you know best.
Bernard Baruch

It's wishful thinking but I'm no investment advisor.. I think TSLA has both a lot going for it and nothing but that's the Hallmark of Tesla and musk.