I am a retired person in early 50’s and thinking about investing in private real estate firm.
The investment firm that I am talking about does sell shares to “selected investors” and does have a good to ok track record so far.
Would you please shed some lights/advice on to what I might get into? Pros, cons?
I appreciate any feedback….
The firm that I am talking about is called ”The Connor Group”
First, why are you thinking of investing with them? Have you been looking for a good real estate asset allocation like a REIT and you found them as part of your search? Or did someone from Connor Group find you first? Are you thinking of buying into this firm or are you being sold on it?
Second, instead of comparing their track record to all the other companies like them, are they somehow better than all the other publicly-traded REITs? You're putting your money in a very illiquid transaction with not much of a market for its shares. You'll be paying pretty much whatever their management wants to charge for expenses. You'll have little or no securities oversight on how they do business, and not much publicly-available information to confirm what you're being told.
Third, why are they being so nice to you? If they're really such a good firm then why aren't the partners and venture capitalists and other private-equity firms snapping up the shares?
"Accredited investor" dollar limits used to be much more significant when they were established decades ago. All those years of inflation have brought down the barrier to within the reach of a lot more people. However while the term can be used to mean "sophisticated investors like you should be part of the Connor Group", what it really means is "because you're assumed to know what you're doing and you lose a lot of the protections that would enable you to sue us for what everyone thinks is our misbehavior".
While you may be an accredited investor, you do not appear to be an educated one. You haven't provided any links to the firm nor offered any other reasons why you'd want to invest with this particular group more than others.
We've had other board members over the years ask questions about privately-traded REITS. One of them was quite adamant about how good a deal they are, he argued for a while, and presumably invested in one. We haven't heard much from him lately. You could try to find MathJak and ask about his experiences.
And finally, if you do a Google search for "the connor group" and follow the links to "the connor group scam" then I doubt you'd have asked your question in the first place. You can also search through the links for "the connor group complaints" and "the connor group lawsuit"...