horseshoe

@HowardRoark90 @alan_stalcup @MainStLender @HUDMultifamily @SamIAmtheREMan He’s a great operator. Good with math

@alan_stalcup @MainStLender @HUDMultifamily @SamIAmtheREMan Any of you guys interested in exploring some condo-conversion lending?

Looking for lenders who understand condo conversions. Here's the opportunity. We're taking existing one-story apartment properties with dedicated parking and washer-dryer connections and converting them into for-sale condos at $100,000 to $150,000 entry points. Buy at $75,000 a door. Sell at $125,000. Moderate leverage produces a 2x return. We sold six units in the first week of our first project. The downside protection is built in. If units don't sell, we operate them as rentals. Same infrastructure. Same team. No additional risk. Rental income covers debt service and the sales rapidly pays down principal. If you're a lender who understands this space or wants to learn more, drop a comment or send me a message.

@alan_stalcup Seems legit.

Where am I investing today? Or what’s the best investment out there? I get that question a lot. For my private equity allocation I’m focused on downside protection with long term upside. J19 is a multi-strategy private equity platform built around the same opportunities I see in today's market. - High cap rate multifamily. - Deeded minerals. - Distressed debt. - Industrial Everything underwritten for cash flow today, not appreciation assumptions that depend on a market recovery. And tax efficient. What makes J19 different from most private equity: - Liquidity at one or three years, depending on investment level. - Known capital call schedule. Half year one. Half year two. No surprises. - Evergreen structure. Distributions start the month after your capital is deployed. I'm allocating my own capital into this platform. It's the best structure I've seen for consistent cash flow. I’m getting a 10% monthly distribution tax deferred while appreciating for a 19% net IRR. If you're an RIA or investor who wants to learn more, reach out directly or visit j19investments.com. Happy to share my experience to date as well.

@LPInvestor @opinioncasino Do not believe this is correct. REIT is smashco and fund 1 separate. Both are $0s

@opinioncasino FWIW if details matter, Fund 1 and the REIT are one in the same. They merged Fund 1 and a bunch of JVs into the REIT to try to save the ship.... which obv didn't work.

S2 Capital made LPs roughly $435M over ten years. Then lost roughly $500M in three. Fund I is returning zero and the REIT equity is a full loss. Take the whole history together and the firm has destroyed more LP capital than it ever made. The track record they raised on was 48 realized deals with zero losses. Realized-only. The deals that blew up were never in it because they hadn't been sold yet. Trinity was presented as the independent manager. They've been S2's capital partner since 2012.

@bobbyfijan @KYinvestorJW @LPInvestor @hitsamty It’s not 7-8% and it’s also called a fee not obfuscated as financing allocation

The private Sunbelt multifamily REIT formed by Scott Everett's S2 is now telegraphing a total equity wipeout, according to new investor comms from partner Trinity reviewed by The Promote. "Said another way, while the common equity was marked at $0.73 per share as of Q4 2025, S2 is currently focused on maximizing value for mezzanine investors, and equity investors should expect a full loss of capital." More for Insiders later today. REIT has 9K+ units so a BFD.

@robbiehendricks Yes but you don’t have a tequila company or private jet.

Let me tell you how we’ve never lost capital in 13 years over 45 properties. 1) We aren’t idiots and didn’t assume rates would drop or stay at zero forever 2) We are good at math and understand that rents can’t run too far beyond median household income 3) We solve for cash flow and have no incentive to buy deals for fees 4) We don’t watch what other people are doing and get FOMO 5) We assume doom will come during our hold period and underwrite accordingly 6) We know our market deeply - all 3600 units have been within 30 min of our office 7) We over-budget capex and build a mega buffer 8) We use long term, fixed debt every time…never touched bridge or floating 9) We keep a huge reserve, both in the deals and personally 10) We just sit on our hands if nothing pencils and will continue to do so for however long it takes Not saying we haven’t had challenges or delays - everyone does, real estate is hard - but we’ve never been close to losing a dollar of investor capital for these reasons.

@DucsDon @LPInvestor @hitsamty I met with those guys…how bad did the investment go?

@LPInvestor @hitsamty Don’t forget this 🤡 show - 855alltrades.com/about-us

@investingcre Yes…blame the anesthesiologist.

I’ve talked to many LPs who lost money in real estate deals. A common theme: They invested because a financial advisor or friend recommended the GP. They did limited or no DD. Gotta do the work yourself

@LPInvestor @caisson68 That is 2-3 months of fees…

@caisson68 They claim to have co-invested $12.5m into Fund 1 and $25m into Fund 2 according to docs I have... But who knows if that was personal capital or some Co-GP vehicle....

Not defending S2 but if you’re an individual investor in their fund(s) and you didn’t ask how much personal capital the Everetts were investing pari passu with yours,, THAT’S ON YOU.

@freshmintcut @factzOYfeelingz @patefortworth @Bkclaims So is your thesis they didn’t lose the money? Or they lost 2-3 people’s money? They just announced the loss this month. It takes time for lawsuits.

Calling any current or former LPs in S2 Capital vehicles. I'm trying to better understand how the 2024 roll-up of numerous apartment syndications into the private REIT actually worked. If you were invested in one of the affected S2 deals, I'd love to chat for 10 minutes. A few questions I'm trying to answer: • Were LPs asked to affirmatively consent, or was it done through a negative notice process (where the transaction proceeded unless investors objected)? • What disclosures or valuation materials were provided before the transfer? • Did each syndication vote separately, or were multiple deals combined into a broader restructuring? • Or did the GP believe it already had authority under the partnership agreements to complete the transfer without additional LP approval? I'm simply trying to understand the mechanics of how the transaction was structured before reaching any conclusions. If you were involved, my DMs are open.

@patefortworth @freshmintcut @Bkclaims Other than cramming winners and losers into the REIT. When you raise money deal by deal, those investments should remain separate so you don’t harm investors in good deals. That REIT only served to help S2 and Trinity continue to raise money by delaying the recognition of losses

@freshmintcut @horseshoetrl @Bkclaims In my opinion, yes. I don’t think Trinity or S2 did anything “wrong” here other than miscalculating risks.

@therealev @Bkclaims 3% is less than half of what they get upfront

@Bkclaims These guys are the bottom feeders of investment managers. Purely for fees they would want to charge 3 points on origination and the hurdle was a single tiered like 50% over a 10-12. Purely fee pigging for themselves not their investors.

Everyone is focused on S2 Capital, but I'm starting to think the more interesting entity may be Trinity Investors. Based on Trinity's own materials, they're far more than a passive investor - they're a capital-raising platform, alternative asset manager, and sponsor with a $5B+ portfolio that partnered on numerous S2 transactions. The question I'm trying to answer is what role Trinity played not only in raising the capital, but also in structuring the private REIT and the investor consent/reapproval process that followed. I'd love to hear from anyone who invested through Trinity or understands the relationship between Trinity and S2. Who managed the investor relationships? Who communicated the restructuring? How were the feeder vehicles and approvals actually handled? It feels like Trinity may be the key to understanding how the entire capital stack was assembled - and ultimately restructured.

@Bkclaims They would raise both preferred and common equity. Affiliates would be GPs of those entities. Guess the conflict goes away if they are both zeros?

@MariettaCRE This guy burned like $800 million of LP capital. Not good for anyone looking to raise LP money. Btw- no pension money in this garbage.

There is a funny psychology in CRE that I’m reminded of when things go south for groups like S2 or other syndication shops. There is a rush to cry foul over the sponsor’s earnings and feign empathy for the lost LP equity. Why? A handful of class b & c apartments getting foreclosed has zero impact on the broader market. It barely affects future fundraising for the groups that lost the deals. It really baffles me why Retwit will spend days dunking on these groups when none of them had money in the deals. Why exactly do people care that some pension fund had a write down or a bunch of dentists and tech bros lost money on a deal they never should have invested in to begin with.

@JohnnyDrama0 @ChasingWaterfa8 They used a broker dealer - Trinity- for this equity. I promise they didn’t know what they were doing. Who would pay an 8% fee up front if they knew what was going on…

@ChasingWaterfa8 @horseshoetrl It was a value add multi fund, barely one step further. Yes, there is a footnote for every vehicle that all investing involves the risk of loss of principal. Yes, you can also show humility that being greedy resulted in a total wipeout of investors capital.

At one point during COVID, he tweeted his personal brokerage account and it was north of 8 figures Why are people suprised / upset he can go on vacation

@JohnnyDrama0 @ChasingWaterfa8 If you count the reit and preferred equity I think the final number will be more like $800 million incinerated.

@horseshoetrl @ChasingWaterfa8 The wife part is childish, but personal spending and behaviors while announcing failure is totally fair game. Admitting defeat on a $400m fund should make you ill. It’s so hard return a 0.0x it’s almost impressive

@ChasingWaterfa8 Don’t disagree…

@horseshoetrl Fair but coming after wife and personal spending is childish