- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
S2 Capital investors get zeroed out - in multifamily!
Posted on 7/2/26 at 2:02 pm
Posted on 7/2/26 at 2:02 pm
This is just hard to do:
Seems like you'd have to try hard to actually return zero capital to investors in apartments. Congrats on the effort, I guess?
LINK
quote:
S2 Capital is dissolving its first multifamily fund with no capital returns – the same news recently relayed to investors in the firm’s real estate investment trust.
A July 1 letter from founder Scott Everett that was shared with The Real Deal said the $400 million valued-add fund’s limited partners and preferred equity investors will receive “no return of capital.” S2 closed its first fund in September 2022 after launching earlier that year with a goal of $250 million. It closed its second multifamily fund last summer, raising $373 million.
Seems like you'd have to try hard to actually return zero capital to investors in apartments. Congrats on the effort, I guess?
LINK
3
Posted on 7/2/26 at 2:12 pm to Big Scrub TX
lawsuits inbound. That's hard to do.
Posted on 7/2/26 at 6:37 pm to b-rab2
Everybody is a successful real estate investor when rates are 2-3%. When the tide rolls out you find out who’s playing with their pants down. These guys certainly had no clue what they were doing. Seeing this more and more every single day in my world.
Shame on the investors too as I doubt many of these did any due diligence on what they were investing in.
Shame on the investors too as I doubt many of these did any due diligence on what they were investing in.
Posted on 7/3/26 at 10:05 am to Big Scrub TX
You have a cash generating asset in the apartment. There is no way that has no value. Hopefully this guy does jail time for fraud.
Posted on 7/3/26 at 11:35 am to Drizzt
Must be letting it go back to the bank.
If you overpay that’s what happens or poorly managed or both.
Mailbox money is there then one day it is not. When real estate prices appreciate it makes real estate investors look good even if they are idiots. They recap every 5-7 years and eventually there are bag holders.
If you overpay that’s what happens or poorly managed or both.
Mailbox money is there then one day it is not. When real estate prices appreciate it makes real estate investors look good even if they are idiots. They recap every 5-7 years and eventually there are bag holders.
Posted on 7/3/26 at 2:07 pm to Drizzt
Has value yes, but not enough value to sell, pay off debt and return money to investors. when you borrower with a total capital stack of 90% or more and then rates shift on you by 300+ basis points, toss in cap rates moving upward by 50 to 100 basis points and your investors are wiped clean.
Posted on 7/3/26 at 8:59 pm to Im4datigers
I really dislike having a large debt stack even though it makes your “returns” look high.
Posted on 7/3/26 at 9:37 pm to Big Scrub TX
quote:welcome to private equity, most of it goes to zero, unfortunately, most sorry and foolish people think everyone of their PE investments is going to be the next Facebook
S2 Capital investors get zeroed out - in multifamily!
Posted on 7/4/26 at 12:40 pm to evil cockroach
DSCR loans are an extremely hot mortgage product right now ironically
Posted on 7/4/26 at 5:52 pm to wutangfinancial
Next bubble. Been doing this 25 years and it’s the absolute dumbest product on the market. It’s almost a lend to own product by the lenders.
I put people in them all the time and they work for certain people but these are going to pop next.
I put people in them all the time and they work for certain people but these are going to pop next.
This post was edited on 7/4/26 at 5:59 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News