Am I Getting Ripped Off on Apartment Shares Disbursement

[Jason Wutzke]

My father has a share in an apartment complex in Lompoc California. They estimated the value in 2008 at $42 million in which he owns 1.231%. Over the last almost 10 years his disbursements have primarily remained the same even though rents have gone up considerably and the payments have slowly started to get later and later in the month. Now they seem to be almost a month behind.

He is trying to see if anything fishy has been going on and what could be done about it. Basically he wants to get out, get anything owed if possible and sell off his portion. I would like to know what his options are and what may be the best way to proceed.  Any assistance would be greatly appreciated! Thank you!

[Jon Holdman]

REITs are publicly traded and would show up on a brokerage statement.  They have to file periodic SEC reports so you can look at those to see what's going on with the finances.

Private placements are not public.  You should have a private placement memorandum and an operating agreement from the promotor of the syndication.  This is probably what you have.   You're getting checks from someone, I take.  They should also be sending monthly or at least annual accountings of income and expenses.  Review those to see what's going on.