I attended a Real Estate Boot Camp in San Antonio back on 6/29 to 7/3/2015 hosted by a company, ATW Investments. I had signed up to attend the boot camp after listening to a Real Estate Guys Radio Show interview with the owner and founder, Brian Peyton. Prior to signing up for the boot camp, I had done some research and didn’t find much on the Internet regarding this company. So, based upon the recommendations of the Real Estate Radio Guys show and reviewing a webinar that Brian delivered, I signed up for the boot camp.
I want to blog about my experience working with them and hopefully by sharing my experience, others who are considering investing with them can learn from it.
At the boot camp, I learned about
- the San Antonio and surrounding markets,
- Brian Peyton story
- ATW Investment opportunities
- Developing my own plan to achieve my goals.
- Touring San Antonio, Waco, and Seguin markets and seeing some of the deals and getting the opportunity to purchase some.
- Meeting his team
I was impressed at the boot camp and as a result, I purchased two properties in what ATW calls their vendor finance model and invested some money into ATW hard money lending (Upfront Capital). Also, shortly after the boot camp, I purchased a third property in their vendor finance model.
Now, almost four months later, I wanted to blog about my experiences.
Upfront Capital: Returns thus far 0%
- I had invested some money with ATW’s hard money lending divison called Upfront Capital: In this model, you provide funds to ATW and they lend it out to rehabbers who need hard money loans to complete the rehab. As a lender, I am in first position on the liens. The returns are said to range from 9% to 23% (averaging 17%) depending upon how often they can re-lend your funds to other rehabbers.
- Thus far with my hard money funds, I have yielded 0%. I have been following up with them every couple weeks and have been told that they are still trying to place my funds.
ATW Vendor Finance Investment: Returns thus far 0%
- In the vendor finance investment, you purchase the home and your purchase price includes the home and the rehab costs. ATW will facilitate the rehab and then find a buyer to sell the house too and I will carry the note on the purchase. The goal is to be the bank and collect the interest/loan payments from the buyer.
- Thus far, I have purchased three properties: Two in Seguin, TX and the other in Waco, Tx.
- It took about a month to close on the properties (end of July. 2015 to 8/17).
- Then, I was told that ATW rehab crews were behind schedule so I have been waiting about 2 months (end of Sept) before rehab could begin.
- My one investment in Seguin started the rehab process on 9/17. I haven’t been given a time frame on how long the rehab will take.
- My investment in Waco just started the rehab process and I was notified that it could take 3 months to complete the rehab because of permits. [Side note: I am wondering why ATW couldn’t start the permit process in the two months that I have been waiting for their rehab crews.]
- My other investment in Seguin that I purchased after the boot camp is sitting. I was told that their rehab team need some sort of certification before they can begin the rehab. The rehab team was scheduled to take the exam on 10/6. [Side note: I am wondering why the team didn’t take this exam in the months that I had been waiting.]
I questioned Brian about this extended period and he responded that it could take up a year before an investor can expect any returns. “The total range is 1 day to 1 year to get an investment through our system”. Brian mentioned that he said this at the boot camp but I must have missed it. This is a key point that other investors should consider. You may have to wait up to a year to get any returns out of your investments. This waiting period is not reflected in the proformas that are given out on the investments.
On a side note, the communication from ATW is very reactive. I have had to reach out to them all the time to get any status updates on my investment. It appears to be that their policy is not to communicate with the investor unless something is happening. In my case, very little has been happening over the last 4 months so they had little need to communicate.
This is the second thing to consider that if you want to know what is happening, you’ll have to be proactive in reaching out to ATW.
I will update folks as my investments go through the ATW system.