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6 thoughts on “There Goes Another One!”

  1. IMHO, Harbor Custom Development was a beaucoup weird company. They seemed to be an up and coming new company building quality single family homes in desirable areas, then when times got tough they were suddenly in the multifamily business. Or vice versa. I forget. I try to forget.

    Googling their Management team was an experience unlike anything I have ever seen before. One of their attorneys was like a public defender type, no discernible corporate or real estate experience. One of their execs seemed to have been a yoga instructor in a recent prior life . Another fellow’s name was out of SPAC world, I should walked when I saw that, Looked to me like they were gonna roll it up into a SPAC and sell it to the 10 dollar investors. (Disclaimer: maybe I got the names wrong. )

    I got burned here and got out a long time ago. By the way you can thank me for their first preferred dividend. I had to remind them to pay it. That should have been a clue. “Mothers, tell your children not to do what I have done.” Harbor Custom Development – the investment case for avoiding high-yield jun issues. Unless, if you can maybe, just maybe, get a few quick divvies then get out of it near par. ” My father was a gambling man down in New Orleans:”

    Just my opinion. DYODD.

      1. August reads like a horror novel. Second BK in 3 years. This is not a reorganization. They are leaving the common and preferred investors out in the cold. and taking the company private. Two of the backers for new funding caught my eye. One was Redwood Trust and the other was Nut Tree Capitol management. We know about RWT which has specialized in jumbo residential loans and I was thinking Nut Tree was the developers over in Vaccaville but turns out they are relatively new private equity co. out of NY started in 2016 with 6 investors and 100 million.
        Either way the tidbit on RWT is one more reason I am not interested in their recent preferred.

        1. Charles, all they really need is a 3rd backer. Salty Maple Trust. Probably spend too much time figuring out a name for their company vs making good honest money.

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