JACKSONVILLE, Fla. – As the News4JAX I-TEAM continues investigating risky “subject-to” real estate deals, a new group says they’re also facing major financial losses: private money lenders who helped fund the transactions.
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Interviews and documents show some of those investors say they were promised high returns, only to see payments suddenly stop, and their investments disappear.
Tinku Saha, a private lender who has invested in real estate deals for more than two years, said she lost nearly $70,000 after working with BG Ventures Investment Real Estate.
“That’s my retirement money,” Saha said. “I’m over 60. I don’t work right now. I was trying to grow that so I could live off it.”
High returns — and high risk
Private money lending is a common practice in real estate investing, where individuals, rather than banks, provide short-term loans for property deals often in exchange for higher returns.
In a “subject-to” or subto deal, the homeowner transfers control of the property, but the existing mortgage remains in their name. The buyer generally agrees to make the monthly payments on that loan.
Records reviewed show BG Ventures sought to convert homes into high-cash-flow rentals, backed by private money lenders who say they were promised double-digit returns.
Saha said she was initially hesitant to invest with BG Ventures because of its business model, which involved sub-to deals.
“The exit was never really to sell it,” she said. “So I kept asking, how are you going to give me my money back?”
She said the company’s owner, identified by investors and on BG Ventures website as Rafael Beato, reassured her that these deals were legit.
After nearly a year of conversations and seeing other investors participate, Saha said she decided to move forward.
“I thought, OK, he’s doing this business, people are getting paid,” she said.
Payments stop, communication ends
Saha said she invested about $69,000 through her retirement account, with a promise of a 25% annualized return over a six-month term, with monthly interest payments.
She said she received payments for five months. Then, everything stopped.
“When I told him I wanted to cash out, that’s when it just stopped,” Saha said. “He stopped communicating. He stopped paying me.”
She said she later received emails claiming payments were paused due to issues with a title company and depleted reserves. But she said no payments resumed, and communication has since ceased.
“I haven’t received anything this year,” she said.
As she searched for answers, Saha said she connected with other private lenders who reported similar experiences.
Some investors received initial payments, she said, but encountered problems when they tried to withdraw their money.
“We found more and more people,” she said. “Whenever they wanted to cash out, that’s when they didn’t get their money back.”
Saha believes the consistency of the pattern raises serious concerns.
“When it’s not one case, it’s many, that makes me think something else was going on,” she said.
Ties to foreclosed properties
The I-TEAM has previously reported that homeowners who entered into subject-to deals with BG Ventures have faced missed mortgage payments, foreclosure filings and credit damage.
Saha said she later spoke with the homeowner connected to the property she invested in, who reported missed mortgage payments.
Through public records, we were able to confirm the property she invested in is currently undergoing foreclosure proceedings.
“That’s when it really hit,” she said.
The deals often relied on converting homes into rental properties known as “Pad Splits” to generate income, but if those plans failed, both homeowners and investors could be left exposed.
News4JAX has talked with half a dozen private money lenders with the same story. By phone, we were able to reach an investor in Seattle who said that he and his wife who together invested $340,000 on four different properties. They only received $13,000 in returns.
“This sounded absolutely legit because on paper, this is like a great deal. Like if somebody can pull this off, if somebody can do a pad split model, still pay out the lenders and then still make money,” he said. “$340,000 is a is a big, big deal. It’s probably life savings for a lot of people, right? But I have an attitude of being positive. I’m just trying to cover it up with my own earnings now.”
Saha said she and other investors are now working together to explore legal action, including a potential group lawsuit.
They have consulted with an attorney but have not yet formally filed a case. In the meantime, she said the financial and emotional toll has been significant.
“I’ve been very upset for a long time,” she said. “I just want to make sure this doesn’t keep happening to other people.”
No response from company
The News4JAX I-TEAM has made multiple attempts to contact BG Ventures for comment, but has not received a response.
As the investigation continues, both homeowners and investors say they are left trying to recover losses.
“I want him to take responsibility,” Saha said. “At least pick up the phone and explain what happened.”