All Forum Posts by: Kristopher M.

@Kristopher M. Check your documents. I can almost guarantee you did not buy into entire company portfolio. You probably bought into a fund (often in an LLC) or a single-property LLC managed by the company. In this sense the risk is walled off and contained just to the LLC in which you invested.

What does this mean? The LLC can be bankrupt even if the company that sold the investment lives on. While this sucks if your deal goes south, there is a good reason for the way this is set up. How would you feel if your property was doing great, but another property was losing money, one that you did NOT invest in, took cash out of your pocket?

Now, if the company that created the investment committed fraud, and you think there is money in the parent company, you might have a chance to recover it.  However, as @Evan Polaski says, it will cost a lot to sue, and may not be the smartest choice.

@Kristopher M., I know you got your answer, but generally, I would say for most investors, particularly in the sub-$250k range, it is not worth fighting for the few pennies that may be left.  Your legal bill will very likely run more than any actual recoveries.  

If you do talk with an attorney, any good one will likely do a preliminary look and advise you honestly if there is any financial reason to sue.  I would assume this would cost you several hundred to maybe a thousand for a couple hours of research to even see if you have a case worth pursuing.