Large-scale Apartment Investment

[Callum K.]

Hi,
I have been approached to invest with several large apartment complexes in large cities throughout the U.S. From what I understand, the process is that you invest into a holding company such as a REIT (not through the stock market) in the form of $50,000-$1,000,000 blocks and receive an ownership stake in the properties. I know pension funds, hedge funds, insurance companies, etc invest in this, but I was surprised to hear that individuals can do this as well. I realize this is an investment about as passive as investing directly in the stock market, but was curious what others experiences have been.

Has anyone been involved in these types of investments? If so, any personal experiences or insight would be much appreciated.

[Joel Owens]

Reit's vary wildly in value and can give great returns one year and bad returns the next. Of course the REIT's never talk about the years where they went from 12% returns to zero percent or negative.

You give up total control to them and it's hard to sell off your interest later on if you want to do something else with your money.

Some people love them but I do not like giving up control and placing total faith into someone else for investment decisions.