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You should read this before you invest in the Tulsa Real Estate Fund.

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In 2016, the JOBS act was passed and a whole lot of stuff was enacted but something cool that happened was that you now didn’t have to be an accredited investor to buy a ownership share in a private company. An accredited investor is someone who makes $200k or more a year or has $1 million in assets but now any jo shmo down the street could invest.

If you are a black person like me who spends a lot of time on Instagram you might have already seen Instagram posts about the “Tulsa Real Estate Fund”. I saw a lot of debate in the posts and I saw what I thought was a lot of easily susceptible people potentially losing their hard earned money so I wanted to make this article.


What is the Tulsa Real Estate Fund? Who is behind it?

The Tulsa Real Estate Fund claims to be “the first 100% Black-Owned SEC Regulated Tier 2 Investing crowd fund and economic vehicle inspired by the historic Black Wall Street of Tulsa, Oklahoma.” Which by the way not to get into semantics is a confusing statement in itself because it isn’t clear on whether they are saying they are the first “Black Owned SEC Regulated Tier 2 investing crowd fund” or “Black Owned SEC Regulated Tier 2 investing crowd fund and economic vehicle INSPIRED by the historic Black Wall Street of Tulsa, Oklahoma”. There is a difference between the two but that isn’t the real point of this article, just something to note.

This company is headed by Jay Morrison and Ernestine Johnson who market themselves as a young black power couple trying to do something revolutionary. Jay Morrison on his personal instagram lists his profession or jobs as “CEO • Fund Manager • Private Lender • Coach • Author • Speaker • Community Organizer” and from Ernestine’s Instagram I’ve gathered that she is an author and actress.

The first time I saw a post about this fund was a couple days ago and at first I was excited like I am sure many others who have seen the instagram ads/posts. The prospect of investing in a crowd funded real estate business for and by black people sounds great. But I soon realized that this was and is probably going to be an American Greed episode in the future.

Why? Well here is a whole host of reasons.

They aren’t based in Tulsa. 

They are named after the original black wall street a neighborhood in Tulsa, Oklahoma that was burnt down in 1921. Hell the IPO is today (June 1st) and marks the anniversary of when that terrible incident occurred. Due to this is probably why some people posting on Instagram and Twitter and other platforms seem to think that this fund is based in Tulsa or will be trying to rebuild the original black wall street. But that isn’t the case at all they are simply paying homage to it.

They aren’t buying a town.

On the Instagram post above they claim they are looking to buy a town. But on the website this town isn’t discussed, in fact on the IPO page all I see is references to a hotel, the “temple project”, and “the indigo temple hotel project”.

That’s just in the QnA section but maybe they will say something in their investment thesis description on the page? Nope they do not.

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But then again I noticed after rereading the instagram post it does say “The couple will partner with investors in the Fund to potentially purchase 60 acres of a 100-acre town.”

Well that’s funny because I myself am also looking to potentially buy a town.

Your paying for someone else’s gamble

We now know from more information being put out by the fund that they are looking to raise $50 million because that is what they authorized to raise up to over a twelve-month period as a Tier 2 Real Estate crowdfund. Generally, the average fund raises $18.2 million.

Currently as of this update at 5:32 pm EST time, they have raised $4,355,000 with their IPO. Mind you that’s 18% more then what I saw 2 hours ago so investments are coming in fast. But here’s the thing, the reason why I say you are paying for someone else’s gamble is because before the IPO, the Company had $0 in cash and total liabilities of $15,350.the Company had $0 in cash and total liabilities of $15,350.

Meaning that the investors are the only ones who face to lose money from this deal. I don’t know about you but if I am investing in someone’s business I want them to have a vested interest in the business. Otherwise they are simply playing with my money and ultimately they won’t work as hard as someone who has money involved and doesn’t want to lose it. Jay Morrison and his team are going to get a 5.5% management fee + 50% of the profits yet possibly own no shares.

This is not a stock in the normal sense.

In a normal IPO, you would be able to buy a share and then sell it whenever you want. This is not the case with this investment however I did read on their site that they plan to have a market place where investors can privately sell their shares to each other once the company has sold the 1,000,000 initial shares. But that’s a lot of if’s and when’s.

Also though this is an IPO and you are buying shares of the company. Once you purchase your minimum amount of $500, they own your money for the next year. After one year, only then can you attempt to withdraw your funds and if they don’t have enough cash on hand to give you back the money, they are not obligated to liquidate assets and will pay you back on a “pro rata basis” which essentially just means in portions whenever they can.

Discrepancies and I don’t mean spelling errors.

In one of the questions in the QnA part of the IPO page someone says that they see spelling errors but they don’t care cause they are about the money. Well if they were to really be paying attention they would see beyond just the spelling errors. I can live with spelling errors, hell I am sure this article itself is filled with a few. But like the old adage says women lie, men lie, numbers don’t.

On the IPO page they originally said they are looking to raise 10 million with their IPO on June 1st.

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but then if you look at the FAQ portion, there’s a question about the crowdfunding goal being currently $2.4 million.

tulsa1.PNG

So are you looking for $10 million or $2.4?

Update (6/1/2018): If you go on the IPO page now where the invest button is, right above it is a section called Max. Raise and it now says $50 million instead of the original $10 million Max. Raise, which you will see in the 2nd picture above this paragraph.

Conclusion

Honestly this is what I think is happening right now.

Mr. Morrison and his partner Ms. Johnson have a great idea but they are either actively trying to scam people or just simply don’t have everything really worked out. They have the idea but not the real experience and know how to accomplish it or they are hoping to fake it till they make it.

Personally It’s frustrating because in my opinion what they are banking on is that there are going to be thousands of black people without investing experience or knowledge who are going to sign up for this.

They are also banking on all the people like me, who will be called detractors or haters, or someone who doesn’t want to see a “young black couple succeed and do right for their community”. All those comments on IG will only motivate and fuel the people that have the right idea at heart of wanting to support a good cause by us and for us but are ultimately going to lose their money.

It’s a great idea.

But unfortunately I just don’t see this as being legit.

Editors note: Besides my own research, I got some great info for this article from the article about the Tulsa Real Estate Fund, from the Ivy Investor who talks about some of the things I address in this article and more. You should also go read it before you invest.

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45 Replies to “You should read this before you invest in the Tulsa Real Estate Fund.”

  1. Thank you for this article. I’m glad I Google and this article came up. I hope more people take the time to research and ask questions before investing their money and possibly losing it. I gave the side eye after seeing their pics and promo video. It looks too flashy for me to take investing with them seriously.

    1. Queen Chelsea, all investments are a risk and asking questions doesn’t guarantee that you won’t lose money. You’re right, don’t invest if you don’t believe in the vision. Don’t invest more than you can afford to lose. Proud TREF Shareholder!

  2. So, I read the article and you failed to provide any proof it is fake. No Facts! No Proof! All you said were opinions. Here are a few facts… 1. Tulsa Real Estate Fund is SEC regulated. 2. He has on many different occasions spoke for the upliftment of black economics on many different platforms and situations. 3. He doesn’t have to do what he is doing because he already has multiple streams of income.

    1. Opinions? I pointed out clear discrepancies. Bernie madeoff was regulated as well amongst many others.

    2. But the danger in that is that it becomes emotional or sentimental. The momentum behind this is the feeling that black folks will own something and be a part of something. Cool. I love it. It is inspirational and moving, BUT as we have seen in financial history, opportunity and gains come to the prepared mind. What does that mean? It means due diligence, research, comparing value vs. price, etc etc. And in this case, it also means looking at the fund manager and his team. What are their track records? What kind of returns have they generated in the past? All of those questions matter.

    3. Look jay Morrison up he was robbing peopl in his own town for years he is a grains we have Keina on all his properties in Bj look it up

  3. And one other point to reply to Mr.Jones. I think Malcolm X (Jay Morrison quotes Malcolm often) said, “one should not join something he knows nothing about.” How many people have done their homework on this? I like this fund idea and it’s inspirational, especially as a member of the “black” community, but doing your homework is vital in investing and business and this just has not focused on the due diligence process enough. However, if people have the risk capital and want to roll the dice, I think this is a great opportunity.

    1. There’s full disclosure for anyone who wants to sign up. If not, this opinionated article wouldn’t exist. Besides, no one is asking for a new track record from Wells Fargo and people all across the globe is still using Facebook. Which is both not owned by the “black” community. Investing in anything is a gamble. Nothings 100%. So if you want to invest then do so but if not don’t try to discourage those if that do. Besides, I this way of thinking could’ve sparked the reason Tulsa got bombed in the 1st place. Now I wonder what community did that?

  4. I totally agree with Omar, this article proves nothing. Just a bunch of opinions. Goal, and ask are two different things. I could be asking for 2 M but hoping to reach a goal of 10 M. Hate to bring up race but anytime a black person presents something its highly criticized, but when a white person presents its accepted without 2nd thought. Im investing, $500 isn’t going to be the end of the world, at least he’s trying to uplift and economically empower the black community

  5. Consider NiceJewBoy’s motivation for this article and only invest disposable cash. As for me, Jay is empowering the Black community and I support him 100%…period.

  6. This article was written with haste…I assume the haste was to hurredly discredit the fund and persuade as many people as possible from investing in it. Since it was written in haste it contains misinformation. The fund clearly says its target raise is $10 million..nothing about 2.4 million. Again the cap on the fund is $50 million, meaning no-one will be able to invest after that. There is no confusion there. Jay Morrison and his team said they will be working with a board of experienced investors who will determine what projects make the most sense for the interest of the shareholders. It’s definitely not a normal IPO because it’s currently a private IPO. Jay Morrison has invested 10K of his money into the fund so if investors stand to lose all of their money like this author says, Then jay will be losing a whole lot more. This author is clearly watching the fund and seeing how many ppl are getting involved…its not farfetched that TREF will meet its target raise in a couple days if not first 24 hours. This is something great to be a part of and skeptics will keep being skeptical. Making any investment involves a level of risk. But this is a fund for the average Black American to invest in. $500 is not make or break you money. But it is a great investment in changing the history and projectorty of the Black community.

    1. 10k? Jay Morrison just got over $500k. He makes 5.5% of every dollar invested. He wins whether or not you lose.

      1. Queen L. Stokes, Jay is charging a 5.5% management fee. Do you know the actual fees that most crowdfunds charge? Probably not! Our SEC Attorney clearly stated that most crowdfunds charge additional fees and oftentimes all the fees together add up to about 5.5% or more, but people are so quick to tear down rather than uplifting. So sad!!

    2. Peace Queen Ms. R, During our Tulsa Talk Live the SEC Attorney actually revealed that, aside from the $10K invested, Jay also invested $75K to get the company off the ground. The SEC Attorney even stated she has never experienced so much hate and negativity towards a crowdfund. So sad!!

  7. You are hateful person! Someone have the balls to help build the black community and all you do is bash them! Any investment is risky. Putting your money into a local back is risky! your concerns and questions you have could easily be answer on their page or just contacting the owner! This article is hateful and your agenda was to discredit him! Your evil plans will not work!

  8. Great article. I too have done my research on this “real estate” fund. My background is in finance and my simply advice to the unsuspecting is…if you don’t understand an investment vehicle then you would be wise in NOT putting your hard earned money there. More importantly, for people of color who may be drawn to this investment opportunity because of the “BLACK WALL STREET” nostalgia and in particular those with earned income (You have a J.O.B.), and in some instances lack investment experience, your better option is to fund a Roth IRA on a monthly basis. Do this and you’ll watch your investment grow over time whether the market goes up or down. I hope my reply was helpful and offered some clarity on the subject.

  9. I’ve also called in to the live Q&A and a lot of the answers seem too vague. For example what are their long term goals? No one could give me a clear answer. Even the website doesn’t have a clear vision.

    I really believe he’s banking on people donating the minimum of $500 and they won’t blink if/when they lose their investment.

    They may have the black community interest at heart, but with no skin in the game they are just playing with other people’s money.

      1. He absolutely has zero skin in the game. The SEC filing states they have done no work. O assets until he collected cash from investors caught up in the new age instagram hype. There are so many unanswered questions. Notice he has never ever shown these so called deals where he made millions. He revealed one duplex in Jersey which he said was his first property. If he made millions why was he working as an agent immediately prior to moving to Atlanta? Why didn’t he as the “millionaire” boss have his own agency? Nothing wrong with aspirations but you have to keep it real.

  10. Your name is “nicejewboy” are you black or mixed? Seems kinda shady af that you would just call it not legit because nothing you’ve mentioned is that damning at all. Like even Google or Amazon or whatever else were nothing more than investments that would, ultimately, cost the investor. That’s the nature of investing bro. Risk. Seems like most of your opinions are just based off this being a black thing. Which is kindof a crabs in the barrel mentality and super racist regardless of your race tbh. It’d be one thing if you ACTUALLY NAMED something that was uniquely flawed about this fund. But you really didn’t.

    1. The second person to comment on my name… I am 50% Jamaican and 50% Russian. And I did point out clear flaws and discrepancies you just dont care about them.

      1. Nicejewboy you haven’t replied to my comment because it stated FACTS, not emotions that you can refute. Truth is the fund has garnered over 7 million in less than 3 days and with only 5962 investors, the average investment is $1200, not the minimum 500. That means you and every other hater is defeated and your article is irrelevant and inefficient.

  11. Farrakhan warned us about “NiceJewBoys” this article failed to provide any concrete proof nor did it present any concrete facts. You should be ashamed of yourself as a writer. I’ll be investing 3X as much since I see once again once someone tries to make meaningful change in the community people like you do anything to derail it.

      1. King NiceJewBoy, what exactly are you doing to help rebuild your community and teaching them about generational wealth?

      2. What am I doing? Well you see about 2 years ago I graduated with a bachelors in Entertainment Management. Seeing a wide spread lack of knowledge for the business side of music for a good amount of people working in the hip hop industry and trying to get in it, I create this site. Because I didn’t want to keep seeing producers getting robbed of there royalties, I wanted to also give them a publicity platform because so many other sites just focus on the rappers. I also do many other related things for beatmakers and I have given out information and advised producers on how to get royalties and make income streams from their music. I’ve also done this for some rappers.

        I have also written articles and done interviews that directly effected the trajectory of over a half dozen artists.

        And if you or anyone has read this and wondered well how tf does that rebuild my community or teach them about generational wealth.

        ITS ALL ABOUT THE ROYALTIES. Royalties for them and eventually will be passed on to their loved ones.

  12. How much u wanna bet this article was wrote by a black woman lmaoo better yet a black woman with no man and or kids bitter at a black couple trying to uplift their community this bogus ass article states that they will mpt invest wellll Jay said in the video he is investing 10k so there goes a flaw in your theory

    Moral of the story go out meet a nice man stop letting any ole spirits and your bed and maybe just maybe ur bitter will turn to sweet

    1. Your comment is disgusting and what plagues the black community. How dare you infer that it must be a black woman with no man or children?! You cannot seriously be concerned with the black community spewing out falsities and damaging stereotypes such as the one you fixed your tired fingers to type in the above comments. Shame on you.

      1. Thank you! I couldn’t believe what I read when I saw that ignorant statement

  13. Its not Jay Morrison or his partners thats in Question. Its the hateful and jealous power structure of white inferiority thats in Question. Its a Historical fact that whites are jealous and envious by their own nature. Therefore , their actions are predictable. I promise theres a team working to destroy this Great American Dream , shit they will work for free without pay , just to see Blacks with nothing. Right now they have created a way to steal all the funds him and the community are building. They will create a scandal by saying he owed money somewhere and / or just take the money , while finding away to make Jay look bad. But i tell you this when they do expect for your cities to be destroyed. People are at their end with the sabatoge of Black peoples self made progress. Its the same reason All 200 of the Black Wall streets were burnt down and only one Black Wall street is mentioned. Because Whites dont want the world to know that their all the same people, who are filled with hate and jealousy.. The whites today are exactly the same people of our Ancestors.
    Stay tuned.

  14. So, when folks go on platforms like NextSeed, Wefunder, etc. The same risk exists and they are also long term deals. When your investing for long-term growth, then you shouldn’t be withdrawing your money prior to year 3 at minimum. This is equity funding, so you are not able to withdraw your funds after a few months on any platform. Same goes with Angel investing and VCs.

    1. You know this, I know this. The majority of people who are looking at investing in this, dont know this, let’s be real.

  15. Just based on the comments alone let’s you know this is a scam. Thanks for stating the obvious facts in this article – it is indeed something to be leery of. Most of the people they are targeting have no investment knowledge and that is what they are banking on – people with a lotto mentality. This time next year (or sooner) we will hear about all these people losing their money. That’s a fact. If people really wanted to invest in the community, how about starting at your own home? Do you own it? Do you have college savings for your children? Do you have an emergency fund? Are you debt free? Do you have a retirement plan? Do you have adequate life insurance on all family members? Those are places people should be investing in first and foremost.

  16. Well said, sir! I’ve had several people ask for my thoughts on TREF. Until recently, I decided to reserve comment, but the enthusiasm has reached a ‘campmeeting’ level of fervor. No doubt articles like yours, IvyInvestor’s, and my forthcoming one will be seen as the work of negative Nellies who want to “keep our people down.”

    Reading though the offering docs should be enough to turn most folks off, but very few will actually do so.

    I watched a video in which the managing member couple mentioned that they’d each be buying their shares (totaling $15k between them) on opening day. I thought that was…novel.

    A comment on another video stated that the writer had $550 in their account, bills were due, but they couldn’t miss this “opportunity.” It broke my heart.

    One can lose their entire investment in anything, but this seems to solely be attracting people who simple don’t have it to lose.

    Stay vigilant!

  17. 5.5% management fee? The highest performing hedge funds typically have a 2-3% management fees. And 50% of the profits? So they are receiving 50% of the profits and haven’t invested in the fund themselves?

    I’m a novice to investing. I’m extremely interested in making my own money grow and looking to find ways to get in on the ground level for positive looking projects. I’ll do more research (and I advise everyone else to do so as well) but you can’t knock the author or others who point out flaws in the system.

    Buy black, support black, but don’t just give your black dollars away.

  18. I see some things I don’t like.

    1-Jay claims to have invested $10,000 which is very low compared to the money being raised. Basically, he has no skin in the game.

    2-The 5% management fee is very high and most non-accredited investors may not understand this.

    3-No concrete plans have been given on how the money will be invested. Just general statements so far. How will this 8% preferred return be made? No clear answers.

    4-I noticed how negative comments on his Instagram page are being deleted. Why are they deleting negative comments instead of addressing the concerns?

    5- Shares are not liquid. There is a one year hold on shares before you can sell anything. There is no clear explanation of how shares can be sold after the one year. How are the $50 shares valued? No one knows.

  19. And you are the real mvp…Emotional investing is the worst. Doing homework first is key. People who run operations like this must first be prepared and second qualified. There is a science and skill and expertise required to manage such a thing. Even in the grant world (my background). We never approve grants until people have a good transparent track record and a transparent plan in place that is feasible, clearly outlined, and promising. I think this program lacks all of the qualities and don’t really suggest he is the one who is the best candidate to “buy back the block or town”. This quick google search that led me here confirmed that while this could be intentional or unintentional…we are definitely going to be tuning in soon to a new episode on American Greed. They should do an American greed special featuring “life coaches”. This messages comes from someone who does well (slowly).

  20. You can only lose your money once. Im white, but not jealous…. Just hate to see people and their money get separated lol.

    This thing is not going to work folks. Do your own homework, you dont need some charismatic cult leader to work you over.

  21. Not being able to touch your investment for a year isn’t a bad thing, in fact, it’s called “passive investing”. There’s plenty of upside to passive investing, including tax benefits. Passive investing (holding a security for at least 1 year) is actually the safest investment strategy when compared to “active investing”. A smart investor always thinks in the long term and passive investing is a long term strategy.
    The Tulsa Real Estate Fund is a passive investment vehicle, much like mutual funds… Many of your points are terribly flawed, especially your point about not touching your investment for a year. STOP HATING!!!

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