Some People Built a House of Cards

I'm not a doomsday guy; I don't like spreading negativity and that's not what this is.

But this is too important not to talk about.

Brandon Turner, one of the most recognized names in real estate investing, has publicly confirmed that his Class B investors are facing a 100% loss on their investment. Zero back. Gone.

I don't share this to pile on, I share it because this is a warning that every investor needs to hear right now.

And Brandon Turner is not the only one, Not even close.

🏕️ The House of Cards Is Falling

Because I'm in a lot of private rooms I'm hearing things that haven't gone public yet. People who were thought to be stand up investors have built business on a foundation of appreciation and leverage with nothing solid underneath.

From small town names to large funds. More than a few are close to collapse.

Appreciation can't get you out of every deal.

We've been in an up market for so long that a lot of people forgot what a real business foundation looks like. When the market was rising, the cracks were hidden. Now they're not.

I'll be honest with you, my own IRA has some bad investments I'm currently working to fix. Learning lessons to come.

🛡️ Equity Is Your Protection

This is the lesson buried inside the Brandon Turner story.

When you invest in a deal with little to no equity built in, you have no cushion. If the market shifts, if the operator makes bad decisions, if the numbers stop working, there is nothing between you and a total loss.

Good equity is your first line of defense.

This is why my portfolio sits at a 46.7% loan to value ratio. If the market dropped by half tomorrow my investors and I would still be whole.

That's not luck. That's math. And math doesn't lie.

Before you put money into any deal ask yourself: where is the equity? What happens if this goes sideways? Am I protected?

Why I Prefer 1 on 1 Investments 🤝

Here's something the Brandon Turner situation highlights that most people aren't talking about.

When you invest in a large commercial fund or syndication there are too many moving pieces. The bank controls what can and can't happen. The operator may want to work something out but the lender won't allow it. Investors are stuck watching from the outside with no ability to influence the outcome.

1 on 1 investing is different.

When it's just you and one other person in a deal, you can have a real conversation. You can restructure. You can work through it together. You have flexibility that simply doesn't exist in large commercial structures.

Simplicity is a feature, not a limitation.

The more complex the deal structure, the less control you have when things go wrong. And things always have the potential to go wrong.

Here's What I'm Doing 📋 

I want to share what I'm doing and what I recommend you do before you lend money or go into business with anyone.

Have serious conversations upfront.  No surface level. Real conversations about how someone manages their business, their debt, their investor relationships, and what happens when things go wrong.

Do your research. Ask around. Search online. Use AI. Look for lawsuits, complaints, and patterns. You're welcome to ask me about someone if you want a second opinion.

Trust but verify. A good reputation is a starting point. It's not a finish line.

Get collateral and good paperwork. Every time. No exceptions. A handshake is not a security instrument.

Get in the right rooms. The conversations happening in private right now will be public news soon. Being in the right rooms means you hear things early enough to protect yourself.

Shameless plug for my rooms. And I mean it.

This is a season that will reward the careful and humble investor and punish the overleveraged and overconfident ones.

Build on a solid foundation. Vet the people you do business with. And stay close to people who will tell you the truth before it's too late.

I'd love to hear what you are doing to vet potential borrowers and business ventures. Message me and let me know.

Adrian's Takeaway

👉 A rising market hides a lot of bad decisions. Build on a solid foundation, know where your equity is, keep your deals simple, and get in rooms where the truth gets spoken early.