Originally Posted by ICNTR
Has anyone had experience with these types of funds? We did one back in 97 and, other than a small annual tax savings, it really seems stagnate. I called Boston Capital and they mentioned that our series of properties was trying to be sold but really couldn't describe when that might happen or how any distributions may be made.
I just hate loose ends. This has been hanging out there for years doing not much more than holding up our tax filings with delayed K1s. Should I brace for some type of scammy resolution or is this a reputable business with hopes of a pleasant ending?
While no one is perfect, and real estate is always local...if they originated your 97 fund back in 1997, and between then and now, they are having trouble liquidating at a decent gain (and your cash flow from 97 until now was marginal), I'd have serious doubts about handing over anything to them to try it again.
I have a small position ($5k) in a private REIT with AEI, bought back in around 2006. It's performed marginally adequate, averaging about 5% distributions per year, and starting to increase slightly as rent increases start kicking in after 5 years on most leases.
Would I do it again? While I firmly believe in lots of diversification (including real estate), I most likely wouldn't do it in that format, given that these private real estate partnerships seem to be set up to benefit the Managing Partners the most (by far), and leave a modest amount of scraps for the General Partners (you) to make it tolerable.
Unless I had a $5MM portfolio, and wanted to diversify $10k-$25k into a small venture like that.