LP or LLC Share investing. Plausible?

[Yan P.]

Hi everyone,

I rarely post but have read a ton from the forum. According to Bryan we're called "lurkers." I have a question about the plausibility of investing in limited partnership shares or LLC's.

Just to give you a little background, I am an accountant studying for my CPA and also have a finance degree. I am approaching this idea as an alternative investment where one can make abnormally large returns for the risk they are taking (the proverbial Alpha).

How possible is it to purchase the shares of limited partnership in the second market? Specifically cash flowing Real Estate. I imagine that when investors in the original partnership need to get out for a variety of reasons they would have to sell at a discount. And because the partnership is already operational with a good history and built-up equity, picking up these shares would give you a discount to the market value of of investing in a new partnership. Thus earning abnormally high returns.

This should be enough to start the topic. I also have a ton of follow up questions.

Thank you in advance for your responses.