kveggie1 t1_j28rnoi wrote on December 30, 2022 at 1:49 PM

I wondering how liquid your investment is. Who do you sell it to when you want out or need cash for a large purchase. what if the "onco" wants to sell all? what if the "onco" dies, who is his successor.

so much risk and you have no control.

I would never do that. I suggest to sell and just by REIT mutual funds from Vanguard.

EschewObfuscation21 t1_j28vnhy wrote on December 30, 2022 at 2:21 PM

You are correct. It is not liquid, the same way that my membership in the LLC that owns the rental property I mentioned is not liquid. It does have a date certain though — 5 years — for the investment to be complete (return of investment plus all recurring interest payments along the way, as with other similar loans [although this raises early repayment risk—that the loan will be repaid early before I’ve gotten a chance to get my five years of interest payments—but that’s not really an issue for this discussion, is addressed by the agreements, and is similar to the risk mortgage lenders take that any given borrower may repay their 30 year mortgage well before the bank gets 30 years worth of interest payments and still involves getting your initial investment returned in full]). Although I’m not an expert, I am a lawyer and the agreements/prospectuses are extremely professionally done and I’ve had a transactional lawyer friend who specializes in complex real estate transactions take a look and he said he’s worked on a number of similar deals and it’s kosher, from a legal standpoint. The amount of the investment would represent quite a small party of my total portfolio so if not having access to $10-$15k for a period of five years is what does me in financially then that’s the least of my problems because that basically means the entire stock market has collapsed among other things (and if I did this through an IRA as outlined above then I wouldn’t be able to access the funds until I’m 59 just like any other retirement account anyway, unless you’re talking early withdrawals and a 10% penalty which I think is something no one ever wants to do if they can avoid it). Finally I don’t think that a Vanguard REIT is going to get me anywhere near an 11-13% return over five years (maybe I’m wrong?) so not quite the same investment opportunity. I recognize this is a very “alternative” investment (which of course doesn’t de facto make it bad), and was really just curious about folks’ experiences with similar investments, as opposed to a critique on the wisdom of making such an investment in the first place.

Anyway, all that said, I appreciate your thoughts!