I invested in Red Door and Right Place Properties (RPP) beginning in 2003. I did so because Drew Grunwald promised a hassel free 11% return on my real estate investment.
This was to be a passive investment, one in which RPP would fixed up apartments (which I now owened) to convert to low income condominiums. RPP was to pay all expenses involved with the conversion to include taxes, maintenence, and conversion costs. RPP would keep the complexes rented and they were entitled to all rental income. The contract stated RPP would buy back the properties in 3-5 years and pay the 11% annually compounded interest to us at the time of buy back.
What they wound up doing is:
1) allow the complexes to fall into disrepair by failing to pay for adequate maintanence.
2) fail to pay most taxes and now several properties have hugh leans
3) failed to buy back the units if the initial investor was not willing to reinvest in other RPP properties.
4) failed to keep the complexes rented.in one complex that was actually converted to condos and modernized only 7 out of 103 of the units were rented and this went on for over a year!
5) Put in place insurance that had a 50,000$ deductible
6) Mid Dec 08 all investors were informed that all units are under direct control of the investors with no interest every paid to me and many other investors. Now I have several units and the majority need to be rented, repaired, insured, and leins paid.
This was not a hassel free investment and now Drew Grunwald and the other sales person Darya Lopatenko have started another company advertising almost the same "oppertunity" that Red Door and RPP advertised. This is a warning stay far away from them! You will loss alot of money and your life will be turned upside down with the time it will take to attempt to straighten out the mess they have created.
0 comments