Open Door Capital
Sponsor

4.79

Actively Raising

Website

Overview

Open Door Capital is a privately held real estate investment firm founded by Brandon Turner that specializes in mobile home parks, self-storage facilities and multifamily. Open Door Capital has nearly $1 billion in assets under management (AUM), a portfolio of more than 13,000 units, and has partnered with more than 2,000 investors. Visit odcfund.com/our-offerings to view current opportunities.

Address

Kiehi,

Hawaii

96753

Year Founded

2017

Operates In

Virginia

Florida

Georgia

Mississippi

Texas

Asset Classes

Multifamily

Storage

Mobile Home Parks

Accepted Investors

Accredited

Similar Sponsors

Details

Assets Under Management$982M

Average IRR35.00%

Average Equity Multiple1.7x

Deals
1

Fund 11

Target IRR16%

Minimum Investment$100,000

Hold Period5 years - 10 years

Closed

Reviews
39

highlighted review

Jeff Yowell

8/27/2024

5.00

"Clear Communications and Returns are Beating my Expectations"

I am thrilled to share my experience with Open Door Capital (ODC) as an investor in Fund 11. From the very beginning, the investor relations manager has been incredibly responsive, addressing all my queries promptly and thoroughly. This level of communication has been a breath of fresh air and has made the entire investment process smooth and reassuring. In just a few months, Fund 11 has already outperformed my expectations. The returns have been impressive, and it’s clear that ODC’s strategic approach is paying off. One aspect that particularly stood out to me was how transparently ODC communicated their decision not to move forward with one of the assets in the fund. They provided clear reasoning and allocated the funds wisely, ensuring that our investments remained secure and profitable. Given my positive experience, I am confident that I will continue to invest with ODC in the future. Their professionalism, transparency, and impressive performance make them a standout in the investment world. Highly recommended!

Laura Hasler

9/10/2024

5.00

"Timely, Thorough and Accurate Communication"

ODC has exceeded our expectations with professional and timely communication. We were very impressed that they delivered our K-1 on-time and surpassed the tax benefits we anticipated. Returns to-date as well as ongoing response after we invested have also eclipsed expectations. Overall, ODC has made it an easy and exciting experience to watch our investments grow in a new way.

Verified Investor

9/9/2024

1.00

"Horrible experience as an LP so far"

Invested in the Sunbelt Fund so have nothing good to report with essentially no distributions since investing a few years ago. Seems the operators including Brandon are more interested in marketing new projects instead of making sure existing struggling projects are operating well. Not sure where their preferred returns investors came from but will see if their able to turn the ship around on this fund and at least return our original investment. For all you new investors this is the type of email they presented AS THEY WERE MARKETING NEW FUNDS on social and their websites. In addition, we’ve seen a 20%+ surge in material and labor costs associated with both CapEx and regular unit turns. These multiple compounding factors have dramatically impacted the performance of SDP, causing a significant strain on cash flow and our ability to continue completing our targeted level of interior rehabs to maximize the ROI on our unit turns. Our Options My team and I have been working closely with Disrupt Equity over the past few months on a plan and have now identified what we believe is the best path forward. The good news is that our current loan term doesn’t end until June - September 2025 (depending on the property), so we won’t need to refinance until later next year. Having said that, we're left with a couple of options: Option #1 – sell the asset immediately at the most inopportune time. Accounting for the current headwinds mentioned above, we would estimate a disposition price of around $80M-$84M, translating to a 53-62% loss of original equity. Option #2 – Obtain ~$3M of additional equity to extend the property’s runway and allow for the full execution of our business plan going into a refinance. This would also provide us more time for the markets to adjust and alleviate some of the headwinds mentioned above. Note that this equity is the minimum required to cover our operational shortfalls and business plan to carry us to a refinance. Depending on market conditions at the time of refinance, there is a chance that additional preferred equity may be required for a cash-in refinance. This is wholly dependent on the market in 2025, which we’re hopeful will improve relative to the last couple of years.

Open Door Capital

Sponsor Response

4.79

Thank you for sharing your feedback. This year, Open Door Capital has launched just one traditional fund, and our equity raised and deployed is projected to be less than ~20% of what we’ve done in previous years as we’ve dedicated our focus toward operations amidst challenging macroeconomic headwinds brought on by the unprecedented run up in interest rates and massive tax/insurance increases. In addition, a significant portion of the capital that we ARE raising this year is going to triage a few structurally challenged deals in our portfolio, including the Sunbelt Diversified Portfolio that you mentioned. Only ~3-5 of our 20+ investment offerings to date are experiencing these type of structural issues due to the unprecedented impact (inflation, interest rates, etc.) from the COVID-19 pandemic. Also our team has grown significantly over the past few years to support the size of our portfolio. We now have a team of more than 100 employees spread across different functions within the company, and we are collectively invested heavily alongside you in every single deal. We’re always here to talk if you have any further questions or need clarification on anything affecting performance. Just reach out to our Investor Relations team and we will set up a call with the appropriate team member to get your questions answered.

Jeff Yowell

8/27/2024

5.00

"Clear Communications and Returns are Beating my Expectations"

Verified Investor

8/21/2024

5.00

"The best in the business "

Brandon Turner and co have really created a well oiled machine at Open Door Capital. As an investor for over 40 years, I can honestly say they are some of the best that I've worked with. They consistently bring me quality offerings with competitive returns, tax benefits and diversification. The team has always provided me with excellent insight and answered all of my questions along the way. As an added bonus, I admire Brandon's faith and his commitment to fighting human trafficking. I trust Brandon Turner with my investments!

Open Door Capital Sponsor

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