Welcome to LPShares.com

About four weeks depending on the general partner. Transfer documents are mailed to the general partner as soon as they are received from both you and the buyer. The general partner can take about two weeks to process the paperwork.

All funds are deposited in an escrow account with an FDIC insured bank of your choice.

What are the main features of limited partnership investments; and, why do they make sense now?

An investment in a limited partnership is an investment in an operating business entity. Unlike investments in common stocks or bonds, limited partnerships are structured to take advantage of the preferences given by the internal revenue code to the real estate, equipment leasing, cable television, commodities and other industries. These separate businesses have operating histories and seasoned management. An important feature is that the assets that comprise the partnership are identifiable and facilitate tracking and analysis.
The quality of the assets and value of the yields have never been better. Take, for example, an investment in the real estate segment. Large amounts of capital have flowed to real estate mutual funds and real estate investment trusts, over the past few years. Many of these funds have low quality thresholds to fully invest available funds. Partnerships, on the other hand, are fully invested in a portfolio of real estate that is identifiable and have operating histories which lead to predictable cash distributions.

Can you give us an example of how a partnership may be priced now in the secondary market?

First we look to the areas underlying the value of the partnerships. Large and reputable companies appraise the partnership assets from time to time. These values are available upon request. Otherwise we analyze the operating results of the partnerships and determine value through analytical methods. These values are then adjusted to achieve yields that are appropriate for the risk of the investment. Prevailing market conditions have an effect, and we are required to get the most favorable price possible in these circumstances.

What types of business investments are covered under the limited partnership umbrella?

The types of business investment include: real estate, equipment leasing, oil and gas, venture capital, agriculture, and the list goes on. Each type can be further segregated; for example, real estate can be commercial or residential, leveraged heavily, or moderately or not leveraged at all, equity and debt (mortgage), operating or leased. Simply stated, limited partnership investments are best suited for businesses that can take advantages of tax benefits to shelter income that would otherwise be taxed if the business had a corporate structure.

What type of yield can an investor look for now in a real estate limited partnership acquired on the secondary market?

Yields can range from 5.0% to over 15% depending on the risks of the investment. Risk is determined from property type, mortgages, diversity of the portfolio and the partnership sponsor. Yields of mortgage partnerships are tied closely to the interest rate market and exceed it by several hundred basis points.

Of the various type of limited partnership investments available on the secondary market, how does the investor position these investments in an asset allocation portfolio?

Many investment advisors consider real estate to be the fourth asset class (after cash, stocks and bonds). Limited partnerships that contain fully specified real estate assets, that are stable and consistent performers comprise an important segment of an investment portfolio developed using modern portfolio management theory.

As far as buyers of these securities are concerned, how do they gain access to your company to purchase partnership interests?

Many of our clients are represented by financial advisors at firms which maintain correspondent relationships with LPShares as part of their business service. Others contact us directly to gain access to our service.