Frequently Asked Questions
We understand you may have questions about your investments and our recent management transition. Below you’ll find comprehensive answers to the most common inquiries from our investors and their advisors.
What is happening with the transition from Crew back to Versity Investments?
Versity Investments was founded on three guiding principles, each centered on prioritizing investors:
Performance – We are committed to optimizing the performance of each investment by focusing on revenue growth, maintaining strong occupancy levels, and managing properties as efficiently as possible.
Transparency & Accountability – We believe investors deserve clear, consistent, and timely communication. Our role as sponsor is to provide updates, outline plans, and remain accountable in our efforts to both enhance returns and mitigate risks.
Relationships – We place a high value on building and maintaining long-term, trusting relationships with investors, financial professionals, lenders, and other stakeholders. This is a relationship-driven business, and we strive to foster confidence through integrity and service.
In 2022, management responsibilities for Versity Investments were assumed by principals of Crew. Following a lengthy arbitration process, management and control have been restored to Brian Nelson, founder of Versity Investments. Brian is not affiliated with Crew in any way.
Over the course of this summer, responsibilities including portfolio oversight, bank accounts, and property management have been transitioned back under the leadership of Brian Nelson and the Versity Investments team. While this transition has taken longer than anticipated, we believe it ultimately serves the best interests of investors by realigning operations with the founding principles of Versity Investments.
What changed in portfolio management, and why did operational control return to Versity Investments?
In 2022, management and operational oversight of the portfolio were transitioned to an external entity. Following a formal arbitration process, operational control of Versity Investments and its managed assets were returned to Versity’s founder, Brian Nelson. Our team is now fully engaged in managing the portfolio.
Who is leading Versity Investments?
Versity Investments is led by its founder, Brian Nelson. To promote responsible governance, the firm is implementing enhanced internal controls, engaging third parties for independent audits, and improving financial reporting and investor communication protocols.
What is the current status of each property, and are any at risk?
We are in the early stages of a comprehensive review of each property and fund in the portfolio. This process includes a detailed analysis of financial records, operational performance, and existing loan agreements. Therefore, it is premature to provide a definitive status on any single asset or to comment on specific risks such as foreclosure or potential sales.
Our primary goal is to gather all necessary information to make informed decisions for each property. We plan to schedule investor calls for each specific offering to share our findings and outline the forward strategy once our due diligence is complete.
When will I receive my 2024 tax documents?
Most 2024 tax documents, including K-1s, are available in the AppFolio investor portal.
Final K-1s for a few offerings remain outstanding, including Timberline on the Green, Student Housing Funds I, II, and III, The Nine DST, and Income Fund I. These entities were under different oversight during the 2024 tax period. We are working with the previous management to obtain the required information to finalize these documents. Our current target for issuing the remaining K-1s is this summer. We will provide updates as they become available.
How will investor communication be handled moving forward?
We are committed to providing more consistent and transparent communications. Our plan includes regular email updates, property specific investor calls, and access to documents through the investor portal. For questions about a specific investment, please contact our team at investors@versity-investments.com.
What is the firm’s strategy to stabilize the properties?
We are evaluating a full range of financial strategies for each property based on its unique circumstances. These options may include seeking new financing, modifying existing loans, or other capital solutions designed to improve financial stability. Our objective is to preserve investor capital and support the long term health of each asset. We will communicate specific strategies as they are finalized.
Is an independent audit being conducted?
Yes, we are initiating an independent audit process. The audit will review historical financial activities, fund management practices, and property level performance. The scope and timeline are currently being defined to ensure a thorough review. We will share material updates as the audit progresses.
Why were cash distributions paused, and when might they resume?
As we assume asset management responsibilities, we have engaged a third-party firm to conduct a detailed financial analysis of each property in the portfolio. This review will provide a clear picture of the current financial health of each investment and help determine the appropriate course of action regarding future distributions. It will also provide insight into past distribution practices for greater transparency.
At Versity Investments, our mission as sponsor is threefold: to preserve investor capital, to maintain property stability, and to emphasize cash flow where possible. We remain committed to restoring distributions in alignment with the financial performance of each property and in the best interests of investors. Timing will be based on the data and property-level results, and we will continue to communicate updates with full transparency as this process moves forward.
Will previously unpaid distributions be paid retroactively?
This answer depends entirely on the data that we received from the 3rd party analysis. if we believe money is owed, we will Follow the money and pursue whatever remedies we can for investors
Are there options to redeem or sell my investment?
These investments are illiquid, and the operating agreements do not include a provision for redemption by the company. Investors have the option to privately sell their ownership interest to a third party. Should you find a buyer, our team can assist in facilitating the required documentation to transfer ownership. Please note that a sale would transfer all rights to any future returns or distributions to the new owner.
How is Versity affirming its commitment to investors?
We are reaffirming our fiduciary commitment by taking specific actions centered on transparency and accountability. These actions include initiating third party audits, enhancing financial reporting, improving investor communication, and conducting a comprehensive review of each property. Our goal is to rebuild trust through responsible stewardship and clear communication.
What is the 90 day action plan?
Our focus from August 1st through the next 90 days is on the following key objectives:
- Completing the financial and operational review of each property and fund.
- Initiating third party audits to ensure financial clarity.
- Launching a series of property specific investor calls to share updates and strategic plans.
- Evaluating financing and capital solutions to strengthen each asset.
- Implementing an enhanced investor communication plan.
These milestones reflect our commitment to diligent, investor focused management.
Have more questions?
Our team is happy to provide additional information and personal assistance.