Liquidity for Limited Partners

[Scott Scharl]

What are the options for LP’s in syndication deals who need liquidity before the investment’s time horizon is reached? Could a secondary market for commercial RE private placement shares ever exist? Why or why not?

[Jay Hinrichs]

Originally posted by @Scott Scharl:

@Jay Hinrichs

So, if somebody came across a life issue where they needed cash, their only option in most cases would be to sell back their shares to the partnership at a loss?

potentially yes..  lets say U have 500k in a partnership and now need your money back.. not realistic to think the GP is going to cut you a check maybe they don't have that much liquidity at the time.. plus now the PPM is full and you cant raise new money maybe that's the case as well.

when the disclosure docs say this is an illiquid investment they are not just saying that.. these are illiquid until you exit as a whole. 99% of the time.  That's why most do accredited investors and especially at the 50 to 100k level freezing that money should have zero effect on an investor in the case of a life event.