Open Door Capital Sponsor
4.79
Website
https://odcfund.com/Overview
Open Door Capital is a privately held real estate investment firm founded by Brandon Turner that specializes in mobile home parks, self-storage facilities and multifamily. Open Door Capital has nearly $1 billion in assets under management (AUM), a portfolio of more than 13,000 units, and has partnered with more than 2,000 investors. Visit odcfund.com/our-offerings to view current opportunities.
Address
Kiehi,
Hawaii
96753
Year Founded
2017
Operates In
Virginia
Florida
Georgia
Mississippi
Texas
Asset Classes
Multifamily
Storage
Mobile Home Parks
Accepted Investors
Accredited
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Details
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
4.79
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.
Laura Hasler
5.00
"Timely, Thorough and Accurate Communication"
ODC has exceeded our expectations with professional and timely communication. We were very impressed that they delivered our K-1 on-time and surpassed the tax benefits we anticipated. Returns to-date as well as ongoing response after we invested have also eclipsed expectations. Overall, ODC has made it an easy and exciting experience to watch our investments grow in a new way.
Verified Investor
1.00
"Horrible experience as an LP so far"
Invested in the Sunbelt Fund so have nothing good to report with essentially no distributions since investing a few years ago. Seems the operators including Brandon are more interested in marketing new projects instead of making sure existing struggling projects are operating well. Not sure where their preferred returns investors came from but will see if their able to turn the ship around on this fund and at least return our original investment. For all you new investors this is the type of email they presented AS THEY WERE MARKETING NEW FUNDS on social and their websites. In addition, we’ve seen a 20%+ surge in material and labor costs associated with both CapEx and regular unit turns. These multiple compounding factors have dramatically impacted the performance of SDP, causing a significant strain on cash flow and our ability to continue completing our targeted level of interior rehabs to maximize the ROI on our unit turns. Our Options My team and I have been working closely with Disrupt Equity over the past few months on a plan and have now identified what we believe is the best path forward. The good news is that our current loan term doesn’t end until June - September 2025 (depending on the property), so we won’t need to refinance until later next year. Having said that, we're left with a couple of options: Option #1 – sell the asset immediately at the most inopportune time. Accounting for the current headwinds mentioned above, we would estimate a disposition price of around $80M-$84M, translating to a 53-62% loss of original equity. Option #2 – Obtain ~$3M of additional equity to extend the property’s runway and allow for the full execution of our business plan going into a refinance. This would also provide us more time for the markets to adjust and alleviate some of the headwinds mentioned above. Note that this equity is the minimum required to cover our operational shortfalls and business plan to carry us to a refinance. Depending on market conditions at the time of refinance, there is a chance that additional preferred equity may be required for a cash-in refinance. This is wholly dependent on the market in 2025, which we’re hopeful will improve relative to the last couple of years.
Open Door Capital
4.79
Thank you for sharing your feedback. This year, Open Door Capital has launched just one traditional fund, and our equity raised and deployed is projected to be less than ~20% of what we’ve done in previous years as we’ve dedicated our focus toward operations amidst challenging macroeconomic headwinds brought on by the unprecedented run up in interest rates and massive tax/insurance increases. In addition, a significant portion of the capital that we ARE raising this year is going to triage a few structurally challenged deals in our portfolio, including the Sunbelt Diversified Portfolio that you mentioned. Only ~3-5 of our 20+ investment offerings to date are experiencing these type of structural issues due to the unprecedented impact (inflation, interest rates, etc.) from the COVID-19 pandemic. Also our team has grown significantly over the past few years to support the size of our portfolio. We now have a team of more than 100 employees spread across different functions within the company, and we are collectively invested heavily alongside you in every single deal. We’re always here to talk if you have any further questions or need clarification on anything affecting performance. Just reach out to our Investor Relations team and we will set up a call with the appropriate team member to get your questions answered.
Jeff Yowell
5.00
"Clear Communications and Returns are Beating my Expectations"
I am thrilled to share my experience with Open Door Capital (ODC) as an investor in Fund 11. From the very beginning, the investor relations manager has been incredibly responsive, addressing all my queries promptly and thoroughly. This level of communication has been a breath of fresh air and has made the entire investment process smooth and reassuring. In just a few months, Fund 11 has already outperformed my expectations. The returns have been impressive, and it’s clear that ODC’s strategic approach is paying off. One aspect that particularly stood out to me was how transparently ODC communicated their decision not to move forward with one of the assets in the fund. They provided clear reasoning and allocated the funds wisely, ensuring that our investments remained secure and profitable. Given my positive experience, I am confident that I will continue to invest with ODC in the future. Their professionalism, transparency, and impressive performance make them a standout in the investment world. Highly recommended!
Verified Investor
5.00
"The best in the business "
Brandon Turner and co have really created a well oiled machine at Open Door Capital. As an investor for over 40 years, I can honestly say they are some of the best that I've worked with. They consistently bring me quality offerings with competitive returns, tax benefits and diversification. The team has always provided me with excellent insight and answered all of my questions along the way. As an added bonus, I admire Brandon's faith and his commitment to fighting human trafficking. I trust Brandon Turner with my investments!