Open Door Capital Details
Assets Under Management$982M
Average IRR35.00%
Average Equity Multiple1.7x
3.96
Open Door Capital Website
Open Door Capital Overview
Open Door Capital is a privately held real estate investment firm founded by Brandon Turner that focuses on mobile home parks, self-storage facilities, and multifamily housing. Since its founding, Open Door Capital has acquired nearly $1 billion in real estate across more than 13,000 units and has partnered with over 2,000 investors.
Address
Kiehi,
Hawaii
96753
Year Founded
2017
Operates In
Virginia
Florida
Georgia
Mississippi
Texas
Asset Classes
Multifamily
Storage
Mobile Home Parks
Accepted Investors
Accredited
highlighted review
Verified Investor
1.00
"Inexperienced operators failed expectations"
They have over promised and under performed on every single metric. They promised 7-9% annual returns. We barely received 2% for 1 year and then distributions were paused. Now I'm just hoping we will get our capital back eventually without a capital call as some of their other funds have needed. I was sold on the whole Brandon Turner marketing machine and should have invested with a more experienced operator. I don't know how they have 5 stars on this platform when every investor that I know that has invested with them has been disappointed. Nothing besides the first fund is performing to projections and this is because the first fund was during the best time to invest when anyone could make money because of the rapid inflation that took place in 2021. Investors beware.
Open Door Capital
Thank you for sharing your feedback. We’re happy we were able to connect recently to talk through your concerns. We aim to provide clear and transparent information from the start, but we understand that there can sometimes be misunderstandings. As discussed, investment returns are never guaranteed. They are based on projections outlined in our offering documents. The 7-9% range refers to the average cash-on-cash return over the full investment period, rather than each year individually. Early returns can be lower as the investment ramps up. While the path to our projections isn’t always linear, we’re still currently on track to meet our overall target for this fund. Pausing distributions was a difficult decision, and we understand the concern it can cause. Distributions were paused out of caution due to the current macro environment, as well as being mid-swing on the busiest (and most CapEx intensive) portion of the fund’s business plan. It was a tough but necessary decision to protect the fund’s long-term health and our investors. With healthy reserves and long-term fixed-rate debt, the fund remains financially healthy and we expect distributions to resume in the coming quarters. Regarding capital calls: To date, we’ve had no capital calls in any of our funds/offerings. Currently we’ve raised preferred equity for a couple of our apartment deals that were structurally impacted by unprecedented increases in insurance/taxes/interest rates, but this differs from a capital call. We’ve taken this step to give these deals more time to refine operations and hopefully benefit from improving market conditions, to try our best to optimize returns for our investors in those deals. Our first fund did benefit from favorable market conditions, and some of the more recent investments have faced different challenges. That said, we are actively managing more than $1B in assets, and the overwhelming majority of our investments are still structurally sound and still on track to achieve our originally projected total returns (even if distributions have fluctuated along the way). We really appreciate your feedback and are always available to chat if you have any further questions.
Verified Investor
1.00
"Poor results and recent 100% loss of invested capital"
I have participated in multiple Open Door Capital (ODC) offerings, and the results have been mainly poor. Most notably, I recently suffered a 100% loss of capital on the Heights on Katy investment. The issues are consistent across the board: Poor Results: Performance has consistently lagged behind initial projections. Absent Leadership: There is a lack of 'boots on the ground' operations. In my opinion, Brandon Turner has not been 'in the trenches' enough to maintain a pulse on performance or address mounting issues effectively. Delayed Communication: Updates are provided a month or more later when comparing to other operators I am invested with. High-Risk Financing: I believe ODC over-leveraged short-term variable-rate loans. In 2021-22 many inexperienced operators were doing deals because it was easy to raise the capital. It appears ODC prioritized closing deals and collecting fees over hedging against interest rate risk and market cycles. I will not be investing with ODC again.
Verified Investor
2.00
"Open Door Capital Hollister Place Apartments"
I invested with ODC due to following Brandon Turner and wanting to support him with ODC. This was one of my first LP investments so I just trusted pro forma without the sponsor having the backing of a solid track record on bigger assets and in Houston, TX. On this particular deal they partnered with Disrupt Equity as the property manager. Disrupt Equity appeared to be a solid local operator, however that turn out not to be the case, property lost occupancy and did not perform close to the projections. I would definitely say don't invest with Disrupt Equity as they dropped the ball in property management and I would say ODC has to go through growing pains of a newer sponsor trying to find their footing with their team, hires, etc. Currently this project has paused distributions over the past year and the total distribution is less than 1% annualized since investing late in 2022. Looking back I now tend to favor vertically integrated sponsors feeling like it limits this risk an you don't have to do due diligence on 2 sponsors.
Open Door Capital
Thank you for sharing your perspective. We understand the frustration when a property doesn’t perform as expected. Hollister Place was acquired in late 2022, just before the multifamily market experienced some huge shifts. Since acquisition, interest rates have risen beyond what anyone expected, operating costs have increased, and Houston has seen a substantial amount of new supply come online. Those factors have impacted many assets purchased during that period across the market. That said, we understand the frustration you feel with a non-vertically integrated operational structure. Our manufactured housing communities are vertically integrated, and one of the biggest advantages of that model is the level of operational visibility and responsiveness it allows. While Hollister Place has faced challenges, the property itself remains structurally sound. The asset is financed with long-term fixed-rate debt and maintains healthy reserves, which provide time and flexibility to continue stabilizing operations and navigating the current market environment. Please feel free to reach out at any time if you have any specific questions about your investment with us. Our team is always available.
Michael H.
1.00
"Lost 100% of Capital"
We lost 100% of capital in the deal we participated. The deal struggled immediately out of the gate. Communicated last year expectation to lose 70% of capital but worked different avenues trying to save the deal. Once those avenues were exhausted, ended up having to sell at complete loss for the equity in our class of shares. Do not recommend.
Open Door Capital
Hi Michael. It’s true that we worked all angles possible to try to save this deal. While Class A equity holders received their principal and preferred return, we ultimately came up short for our Class B investors. We understand how disappointing that is and recognize the trust placed in us when you invested. If you would like to discuss the specifics of your investment, our team is always available.
Verified Investor
1.00
"Disappointed "
Unfortunately I was advised I would have a 100% loss of capital invested into Heights on Katy. Management is friendly, but this is not acceptable.
Open Door Capital
Thank you for the kind words about our management team. As for Heights on Katy, we made every effort possible to change the outcome of this deal. We explored restructurings, recapitalization options, and multiple other strategies to preserve equity. And while Class A equity holders received their principal and preferred return, the final outcome did result in capital loss for our Class B investors. We are genuinely sorry that this is how the investment ultimately turned out. We don’t take the trust that you put in us lightly. While we can’t speak to your specific account due to the anonymous review, we are always available if you have any questions.
