Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I own WP Carey (WPC), which manages its own non-listed funds (WPC was an MLP, but changed to a REIT about a year or so ago.) That, for me, is a long-term holding. It is somewhat volatile at times, but held up rather well (by comparison to other RE) in 2008.
Brookfield Property Partners (BPY) is an MLP spin-off with Brookfield's real estate holdings as well as an increasing amount - over time - of exposure to Brookfield's private RE funds.
The new Versus Real Estate Income fund (I forget the symbol for that mutual fund) is completely private RE funds, but I believe there's limitations on withdrawals.
John, all I can say is that if Wall Street doesn't want them why on earth would you.
I believe I was sold just a thing back in my formative investing years. The IDS agent said is was a great vehicle for tax deferred or non-taxable income in addition to the tremendous potential for capital gains once the investing public caught on to them. After I had seen one-third to one-half of my initial investment disappear and for reasons unknown to mankind the agent was never available to take my calls (but his answering service would make sure that he got right back to me on this matter) I realized that he and IDS were the ones seeing the gains and I and others like me were paying for their 3 martini lunches.
Reply to @Mark: You too, hmmm?? Those "Limited Partnership" REITs were supposed to last only a few years, but we had at least one that was spawn of Dracula- damned thing caused us tax filing problems for at least 25 years. Lost our tails on those suckers!
Note to Charles: It was experiences like this back in the 70s that led us to appreciate the relatively decent advice from an American Funds rep. We may have paid a front load, but at least we made decent money from American. Places like Fund Alarm and MFO didn't exist then.
When even consider something like this, unless you have a lot of money to tie up for a long period of time. Other than that, these illiquid, opaque, expensive things are great.
do you folks know any vehicles out there that are similiar to these products - thanks
>>>>>>>>>>>>>>>>>>>
EBay-Style Peer Loans Spur Wall Street Asset Craze
Armed with a muscular board that includes former Morgan Stanley CEO John Mack and former U.S. Treasury Secretary Lawrence Summers, Laplanche aspires to create the go-to Internet site for borrowers in need of funds for credit card consolidation, home improvement and small-business expansion.
Masood Raja, an English professor at the University of North Texas in Denton, took out a three-year $3,500 loan from LendingClub early this year to purchase a Vespa motor scooter on eBay. He was assigned a rate of just over 10 percent.
Raja says that 72 lenders put money into the loan, buying chunks of as little as $25.
LendingClub says that from June 2007 to July 31 of this year lender-investors earned an average annualized return of 9.5 percent, compared with 0.1 to 1.5 percent in a bank savings account. Prosper’s average return for the period from July 2009 to June 2013 was 9 percent.
comments--CDOs started in a very similar way, and initially were a tiny corner of the market that most people ignored. Within less than 10 years from their introduction, they became so big that they drove the dynamics of most credit capital markets.
>>>>>>>>>>
From little acorn CDOs grew mighty oaks until the storm.
Comments
Brookfield Property Partners (BPY) is an MLP spin-off with Brookfield's real estate holdings as well as an increasing amount - over time - of exposure to Brookfield's private RE funds.
The new Versus Real Estate Income fund (I forget the symbol for that mutual fund) is completely private RE funds, but I believe there's limitations on withdrawals.
I believe I was sold just a thing back in my formative investing years. The IDS agent said is was a great vehicle for tax deferred or non-taxable income in addition to the tremendous potential for capital gains once the investing public caught on to them. After I had seen one-third to one-half of my initial investment disappear and for reasons unknown to mankind the agent was never available to take my calls (but his answering service would make sure that he got right back to me on this matter) I realized that he and IDS were the ones seeing the gains and I and others like me were paying for their 3 martini lunches.
Note to Charles: It was experiences like this back in the 70s that led us to appreciate the relatively decent advice from an American Funds rep. We may have paid a front load, but at least we made decent money from American. Places like Fund Alarm and MFO didn't exist then.
do you folks know any vehicles out there that are similiar to these products - thanks
>>>>>>>>>>>>>>>>>>>
EBay-Style Peer Loans Spur Wall Street Asset Craze
Armed with a muscular board that includes former Morgan Stanley CEO John Mack and former U.S. Treasury Secretary Lawrence Summers, Laplanche aspires to create the go-to Internet site for borrowers in need of funds for credit card consolidation, home improvement and small-business expansion.
Masood Raja, an English professor at the University of North Texas in Denton, took out a three-year $3,500 loan from LendingClub early this year to purchase a Vespa motor scooter on eBay. He was assigned a rate of just over 10 percent.
Raja says that 72 lenders put money into the loan, buying chunks of as little as $25.
LendingClub says that from June 2007 to July 31 of this year lender-investors earned an average annualized return of 9.5 percent, compared with 0.1 to 1.5 percent in a bank savings account. Prosper’s average return for the period from July 2009 to June 2013 was 9 percent.
http://www.bloomberg.com/news/2013-08-27/ebay-style-loans-lure-summers-to-mack-in-wall-street-asset-craze.html
comments--CDOs started in a very similar way, and initially were a tiny corner of the market that most people ignored. Within less than 10 years from their introduction, they became so big that they drove the dynamics of most credit capital markets.
>>>>>>>>>>
From little acorn CDOs grew mighty oaks until the storm.