Brandon’s fund bought a multifamily complex with a simple plan to increase occupancy, add value, then sell.
But then came the underperformance, insurance cost increases, and the interest rate hikes that blew the projections.
And we’re hearing lots of opinions about Brandon’s investing style but I want to focus on the investors, the limited partners (LPs), on these deals.
One investor, Tyler Wehrung, made a Youtube video about his investment dropping to zero.
He said he trusted Brandon and he invested based on the PERSON.
And THAT is the mistake most LPs and private money lenders make.
They see a seasoned investor, a public figure, a track record, and they fund the name NOT the deal.
Hard money and DSCR lenders don't work that way for a reason.
They look at both:
- The investor — history, credibility, execution
- The deal — exit strategies, comparables, cap rates
They get the full picture before a single dollar moves.
That second layer is what too many passive investors skip entirely.
And it’s what is being glossed over in this debacle.
I'm not the one with $75K in a fund but I have lent money into deals that didn't go the way I expected.
And when I looked back at why- I hadn't done enough due diligence on the investor or on how my investment was actually secured.
I trusted the person and skipped the homework on the deal itself.
Here's what changes this-
We can remind ourselves that *nothing* is guaranteed and investing comes with risk, and that you can be frustrated at how a deal turned out *and* take responsibility for what you didn't verify before you wired the money.
Before your next deal ask for the exit strategy in writing.
Ask how your investment is secured.
Ask what happens if the projections miss.
Those aren't rude questions but are the due diligence you owe yourself.
And you are not a victim if you skipped the homework.