You really should stay in your lane, Mr. I have a friend in the real estate business.
The key issue: How sustainable is it? If the underlying properties don’t generate enough rental income, the “distribution” could be subsidized by new investor money — a red flag.
So now you’re an expert on what we in the real estate business call a Ponzi scheme.
While Ponzi schemes are well known in the industry, this investment is tied to just one asset, which the investor will hold under a legal ownership structure. Plus, there’s the oversight of having it regulated under the watchful eye of the SEC. But you already knew that.