Quote:
Originally Posted by ErikLS2
Greg, are those LLC's you invest in or LLP's since they have a General Partner? If you want to get out of it can you only sell your share of the partnership or do all the LP's and GP have to agree to sell the property? If you can only sell your share, how hard is it to sell and find buyers for? As you may recall, I'm in apartments too and seem to have a knack for identifying good opportunities more than I have the cash to acquire them. The manager of mine and I have talked about getting into something like this is why I'm asking. Thanks for all your input.
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The reason you must be an accredited investor is the complete lack of liquidity of these types of investments. There is no market for the shares and I can not just sell to someone else. The GP must approve any transfer of the ownership of the shares. The group votes on any proposal to deal with the property i.e., sell vs 1031 exchange. You go along with the group and it's really the GP that makes the decisions - the investors are passive.
I would be referred to as an Investor or Member in the LLC.
This is one of the reasons I like to be a larger shareholder in the group... because then you will be heard by the GP should you wish to have some discussion about "something".
I also mistakenly referred to the paperwork as a PROSPECTUS --- it's really a PRIVATE PLACEMENT MEMORANDUM. I think a Prospectus is for a public company but they're the same for practical purposes.