Rise48 Equity

Rise and crew have been pretty good and answered my questions so far. They are trying to refinance and cross collateralize over 20 properties (including the one I invested in). I know some of their properties are doing poorly and I'm not a fan of this option despite them saying it's ok. I invested in this project not a fund. In order to avoid that cross collateralization risk and now it's coming for me anyway. I am disappointed in how they have sold this refinance. Straightforward questions aren't being answered in a straightforward way. The FAQ for the refi asks if this puts my investment at risk. Yes it does would be a straight answer. A follow up as to how would be excellent communication in my book. During this time my investor contact has changed and it has now become harder to get answers. It's possible that this refi created loads of questions so I can imagine that might have bogged him down and that's understandable. What really is distressing to me is that Rise48 takes such a large promote and during this refi to mix performing and non performing assets I was petitioned for a further investment with Rise48. I won't invest with them again even if my money comes back 3x.

Invested in RISE West Arlington Multi-family complex in 2024. Distributions began the following month after closing and continued for ~18 months. Occupancy trended downward for a year or more and average rents declined despite renovations. The team has been transparent about these headwinds and have communicated their approach to weathering this. Distributions were initially decreased and subsequently paused. for the past ~3 months. Occupancy seems to be increasing significantly and I am hopeful this asset will be back on course soon.

I have been investing with Rise 48 for just a year now and invested in six separate deals and all have gone as planned. Investor presentations are top-tier. Clear, data-driven, and professional making it easy to understand the business plan, risk profile, and projected returns for each offering. Their underwriting and deal analysis are extremely thorough, and that shows up in how they select and operate assets in these markets. I think they are different because of their vertically integrated approach to sourcing, marketing, and renovating and a great way to optimize returns. I also love that they have their particular niche in the market and stay within those walls and are getting more educated on each deal. Rise48 sets the standard on how to communicate with investors. Communication is the best I’ve experienced in the industry, with regular updates, transparent financial reporting, and easy access to information about each property’s performance. I find their business model and market selection compelling for long-term wealth building. Nick Stormwall is my contact and he has been available, responsive to emails, and willing to work with me through the details of each project. I am sure I will continue to invest with these guys as new projects come up.

I went into a Phoenix deal with Rise48 in 2022 and I want to be fair about it. The team was professional and the communication during fundraising was solid. No complaints there. My issue is how the deal was structured. They bought when prices were high using short-term floating-rate debt, and when interest rates climbed it put the property under real pressure. Distributions got paused, and eventually there was a request for more capital. I understand the market moved against everyone, but I don’t think the risk was explained as clearly as it should have been going in. The other thing that sits wrong with me is that the sponsor fees get paid regardless of how the investment actually performs. That’s standard in this business, but it stings when you’re the one absorbing the losses. I’m not saying they’re bad people or that they did anything dishonest. I just wish I’d asked harder questions about the debt and what happens in a downturn before investing. If you’re considering them, do that homework first.