What's up with CityVest?

[G]

Welp, since it's almost time for the Q4 update, just thought I'd ask if anybody has recently heard from Cityvest. Specifically, I never got a Pathfinder Q3 investor update and certainly not a Q3 distribution.

I'm thinking of doing PoF's FIRE series just so that I can comment on my worst investment ever. If you catch my drift.

[Tangler]

This thread is scary.

Not casting judgment / blame / criticism.

I am not well enough informed to judge.

I just find this discussion troubling.

Makes me very glad i have kept it ultra boring.

In 2017, i was hearing of these deals and others and I thought it might add some diversification.

I was unsure.

my risk averse wife said: “ No, we are not doing that!”

Glad i listened to her.

At a minimum I think the average doc is at a huge informal disadvantage.

As the wise WCI says: “No called strikes”.

[VagabondMD]

I think that things have improved somewhat since this thread debuted a while back. I am getting more communication. I think that they added an operations person. I believe that things will work out as expected, or within range. I will come back to this thread in four months to complain about the K-1’s.

[VagabondMD]

Welp, since it's almost time for the Q4 update, just thought I'd ask if anybody has recently heard from Cityvest. Specifically, I never got a Pathfinder Q3 investor update and certainly not a Q3 distribution.

I'm thinking of doing PoF's FIRE series just so that I can comment on my worst investment ever. If you catch my drift.

I think it is too soon to call this a “worst investment ever.” They may get a “lousy and erratic communication” honorable mention. I think it will work out okay in the end.

I have changed my private real estate investment fund selection process and am favoring companies with a longer track record, better communication and greater transparency. I will let you know when I find one.

[Otolith]

When I hear/read about the latest real estate fund mentioned on WCI it always makes me say: What changed? Isn't that similar to picking individual funds/stocks?

I do think WCI does a good job at being objective and mentioning REIT indexes and other possibly more safer ways.

[PhysicianOnFIRE]

Communication hasn't been great, but we did get a Q3 update (and distribution) for the DLP Lending Fund Access Fund. The plan is to liquidate the investment in October of 2022, which is in line with the originally outlined 3-4 year time commitment.

Returns after fees have been just under 10%. Currently reading 9.5%, but that's not counting the ~7 weeks of returns accumulated but not received since the last distribution.

My distributions and returns to date:

https://www.physicianonfire.com/wp-content/uploads/2021/12/CityVest_DLP.png

[Nysoz]

SPY in the same time frame is 65% and VNQ is 31% appreciation with whatever dividends those pay out.

Are the main benefits of these funds tax benefits and doesn't it also get some sort of additional return once the investment liquidates?

[PhysicianOnFIRE]

SPY in the same time frame is 65% and VNQ is 31% appreciation with whatever dividends those pay out.

Are the main benefits of these funds tax benefits and doesn't it also get some sort of additional return once the investment liquidates?

Depends on the type of private real estate investment. The DLP Lending Fund is a debt fund that earns simple interest. It's not particularly tax-efficient, and is best owned in a tax-deferred account like a self-directed IRA or 401(k). The net asset value of this fund is not designed to change. You're simply pooling money that is lent to fix-and flip home investors.

Most equity funds (as opposed to debt funds) are expected to have some capital appreciation (NAV increase over time) and provide some tax benefits passed through to the investor.

[HM7]

The Cityvest Trion Access Fund hasn't provided its Q3 update either. At least I haven't received it.

Issues I'm currently following for the Trion Fund:

1. 2020 K1 depreciation was $639 on $37,500 investment (2%). This is very low when I compare it to my other funds. This fund was started in late November, so we'll have to follow up on the 2021 depreciation to make sure we are more caught up in depreciation allocated to us.
I emailed Andrew Lucas from Trion and he had said that city vest got in late to this fund, so he was expecting a higher amount of deprecation to come with the next K1.

2. In his last email on 10/8/21, Alan said that Trion had said that distributions were suppose to come next month (november). It's the end of December, and we don't have distributions. I understand that it takes time for distributions to begin in value add projects, I have no problem waiting. But if you're stating that they'll come in november, and they dont; then maybe give us an update.

3. In the same email Alan mentioned that distributions were not given previously due to "earlier investors were being caught up on their pref distributions".
What does that mean? Are they paying investors who got into the fund earlier? Is it paying the pref on fund I investors (this is currently Fund II)?

4. Q3 update.



Maybe we should break up this thread into Cityvest's individual investment threads; and communicate as a collective?
e.g. Trion, DLP, New Era, etc

Welp, since it's almost time for the Q4 update, just thought I'd ask if anybody has recently heard from Cityvest. Specifically, I never got a Pathfinder Q3 investor update and certainly not a Q3 distribution.

I'm thinking of doing PoF's FIRE series just so that I can comment on my worst investment ever. If you catch my drift.

[jacoavlu]

not the same as a RE fund but with regard to a lending fund I would put that in a similar bucket to a stablecoin interest account - and I would choose the stablecoin interest account every day of the week. Returns have ranged 8-12% and you maintain liquidity

[Lordosis]

I wouldn't touch stablecoins with a 10 foot pole.

But I wouldn't touch these RE funds with a 29 1/2 foot pole

Is diversification really worth it?

[xraygoggles]

I wouldn't touch stablecoins with a 10 foot pole.

Why not?

[Tangler]

I wouldn't touch stablecoins with a 10 foot pole.

But I wouldn't touch these RE funds with a 29 1/2 foot pole

Is diversification really worth it?

Did you steal that from the Grinch Christmas song ?

[Verse 2]
You're a monster, Mr. Grinch
Your heart's an empty hole
Your brain is full of spiders, you've got garlic in your soul, Mr. Grinch
I wouldn't touch you with a thirty-nine-and-a-half foot pole!

https://genius.com/Dr-seuss-youre-a-mean-one-mr-grinch-lyrics

[Lordosis]

Did you steal that from the Grinch Christmas song ?

[Verse 2]
You're a monster, Mr. Grinch
Your heart's an empty hole
Your brain is full of spiders, you've got garlic in your soul, Mr. Grinch
I wouldn't touch you with a thirty-nine-and-a-half foot pole!

https://genius.com/Dr-seuss-youre-a-...-grinch-lyrics

Nuts I got it wrong. I was doing it from memory.

[Lordosis]

Why not?

Because a yield like that means at least equity level risk. However the risk is not apparent therefore I am fearful of what it might actually be.

Basically anything that promises high returns has me very skeptical.