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Old 12-30-2015, 03:04 PM
 
Location: Close to an earthquake
890 posts, read 679,794 times
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Much discussion here about annuities, long-term care insurance and reverse mortgages with everyone generally on one side of the line or the other and not too many straddling. Some strong opinions and it all makes for healthy discussion here.

What about limited partnerships as in the publicly-traded kind, either oil and gas or real estate? I've never owned them but I've seen them in my clients' portfolio and have never been impressed with most of them. I remember in the early 1980's when you could go to a breakfast presentation for a real estate limited partnership or a storage unit partnership and get fed and stuffed with good food while viewing a fancy slide show presentation of high rise real estate buildings in downtown Houston with Balcor having a perfect investment for you to get in on the action.

Maybe I'm missing something but I've never seen investment return numbers on these that knock my socks off.

Now I have seen decent returns on the private limited partnerships put together by generally someone in real estate who brings in a half-dozen close friends and other inner-circle contacts but I've also seen some disasters. Ditto for the TIC real estate market that was hot maybe more than a dozen years ago.

Anyone here hit a home run on a limited partnership investment?
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Old 12-30-2015, 03:41 PM
 
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The only one I owned was when I was very young and a sucker I guess. I lost my entire investment of about 3,000.
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Old 12-30-2015, 04:29 PM
 
1,076 posts, read 1,120,527 times
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Too risky for my blood.
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Old 12-31-2015, 06:44 AM
 
Location: Central Massachusetts
4,800 posts, read 4,860,228 times
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Quote:
Originally Posted by borninsac View Post
Much discussion here about annuities, long-term care insurance and reverse mortgages with everyone generally on one side of the line or the other and not too many straddling. Some strong opinions and it all makes for healthy discussion here.

What about limited partnerships as in the publicly-traded kind, either oil and gas or real estate? I've never owned them but I've seen them in my clients' portfolio and have never been impressed with most of them. I remember in the early 1980's when you could go to a breakfast presentation for a real estate limited partnership or a storage unit partnership and get fed and stuffed with good food while viewing a fancy slide show presentation of high rise real estate buildings in downtown Houston with Balcor having a perfect investment for you to get in on the action.

Maybe I'm missing something but I've never seen investment return numbers on these that knock my socks off.

Now I have seen decent returns on the private limited partnerships put together by generally someone in real estate who brings in a half-dozen close friends and other inner-circle contacts but I've also seen some disasters. Ditto for the TIC real estate market that was hot maybe more than a dozen years ago.

Anyone here hit a home run on a limited partnership investment?


Not for investing capital. Now if you are talking about being the LLC yourself absolutely. If you lose it well you are the one to blame. It is like betting on horses. If you cant control the situation it is a gamble.
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Old 12-31-2015, 02:29 PM
 
237 posts, read 161,680 times
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For myself, I would say no, but that's because I like to keep things simple.

If a retired person already has sufficient assets that are producing a sufficient income that will last through their lifetime and that of any dependents, yet there's some extra money lying around that the person is willing to gamble and risk losing, then it would be fine.
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Old 12-31-2015, 03:49 PM
 
71,934 posts, read 71,971,035 times
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they are not transparent at all and can be a nightmare to figure out where your money is going .
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Old 12-31-2015, 04:04 PM
 
14,275 posts, read 24,033,616 times
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I bought into one of those as I did not really take the time to do the research and the shares were publicly traded.

The accounting for those 100 shares tax waise took more effort than all of my other investments combined.
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Old 01-01-2016, 11:37 AM
 
Location: Houston/Brenham
4,121 posts, read 4,712,492 times
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Quote:
Originally Posted by borninsac View Post
Now I have seen decent returns on the private limited partnerships put together by generally someone in real estate who brings in a half-dozen close friends and other inner-circle contacts but I've also seen some disasters. Ditto for the TIC real estate market that was hot maybe more than a dozen years ago.

Anyone here hit a home run on a limited partnership investment?
As an experienced investor, I would generally shy away from publicly available LPs. The exception is what I bolded above. If a friend (and I mean a real friend, not a "kinda friend") puts together something, and you have reason to believe it has potential, then it may make sense. Even then, do your homework.

For example, I had a close friend who found a piece of land that he felt had potential. Twenty-five of us each put in 4% of the cost (six figures each). It's an example of where the entire amount would be too risky, but 4% makes it bearable if it goes south. It's done very well, but if it hadn't, I can handle that too.

Quote:
Originally Posted by Harpaint View Post
The only one I owned was when I was very young and a sucker I guess. I lost my entire investment of about 3,000.
When I was first starting out in life, I went in on an LP for $3,000 (that must be a number calculated to draw in us suckers). Piece of land in west Houston, was gonna make us all a fortune. The bust of the early 80s hit, and I lost it all.

Lesson learned.
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