THE NON-BLACK "ROOTS" FUND vs. JAY MORRISON TULSA REAL ESTATE FUND: THE DICHOTOMY OF THE BLACK AMERICAN INVESTOR -- When Jay Morrison launched the Tulsa Real Estate Fund, how excited were thousands of Black Americans to see a Black man become the first African American to qualify as a Regulation A+ Tier II, a pre-IPO. As I was contemplating investing, I noticed something in the securities offering which halted me giving money: buying old ass houses & apartments, and lending to others. As a visionary founder and entrepreneur, I knew there was a better way for our community to come together (or so I thought) to BUILD things instead of BUYING things. Therewith, I researched and started my own fund going through the rigors of the Securities and Exchange Commission (SEC) to become the second African American to qualify as a Regulation A+ Tier II in order to raise up to $50,000,000 in equity. Sadly, I was fundraising during Covid-19, which took a toll on my company and operations in 2020.
Fast-forward to 2024, the Jay Morrison's Tulsa Real Estate fund has allegedly filed bankruptcy and is entangled in pending litigation and fraudulent inquiries about the fund and its owner. Boy, were we all excited about this fund as history was made raising over $11.7M with 15,000+- investors. As a former fund manager, I was also excited about reading a brief synopsis on the "Roots Fund," which I said, "O'h another Black fund; let me read more about the owners."
The dichotomy of both funds is a contrast lesson in the Black American Investor. With Tulsa, the financial statements reveal $15,000 in assets. With Roots, the SEC financial statements note $0 in assets. Jay was criticize and crucified for buying old azz houses and apartments. Yet the NON-BLACK Roots fund and owners buy old azz houses, fix them up and rent them out; the same Jay's fund was doing. Jay's fund raised over $11.7M and the Roots' fund raised over $33M and counting. Both funds served the same demographics (the unsophisticated non-accredited investor; the general public) juxtaposed being based in Atlanta, Georgia.
What this dichotomy is showing me that the Black/African American community will never come together to BUILD & OWN. I take my fund as an example. Our goal was to design, develop, build, own & manage single family homes, multifamily apartments, condominiums, hotels, retail stores, restaurants, banks/lending institutions, mixed use developments, high-rises, etc., all from the ground-up. The Roots fund had landed NBA & NFL players as investors whereas Jay's previous attempt was deemed criminal & the "White powers that be," told its professional, rich players to stay away from this Black owned fund. YET, the Roots fund is majority NON-Black owned and there were no warnings issued to invest. I am so mad & furious with Jay because you had $11.7M; now bankrupt, which you could have turned that leverage into a $40M portfolio. Now we have Roots with $33M raised serving the same Black demographic.
Vice President at Hillwood Communities
5moNice!