Private Placement Investments

[NitroZ7]

Anyone ever participate in one of these? I have information to invest in a company that acquires and invests in luxury multifamily apartments. So these would be higher end apartments. The Membership Interest would be illiquid since it is not traded on the public market and it would be tough to sell it privately since you would need the approval of the Manager. It would be something I would need to hold for about 10 years. I'm just at the stage of reviewing the offering prospectus, the operating agreement and some other associated investment information. I'm still on the fence as to whether I want to invest because there has been alot of apartment construction and if this economy stays bad for a long period then rent collection will be down and they may not have the units fully leased as tenants opt for cheaper options. On the flip side there may be more renters as people may not be willing to make a home purchase. If I do the investment it would represent less than 1.5 percent of one of the accounts. It looks like they give you an annual priority return of at least 10% (which of course is not guaranteed and I wouldn't expect a guarantee since it is an investment). The person who put me in touch with the company is my broker who invested in one of their funds 10 years ago. I would be investing directly and not through my broker.

[Bassmaster96]

I've never done one of those. Sounds kind of interesting. You raised an interesting point on the possibility of more people renting than buying.