Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

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.

    Support MFO

  • Donate through PayPal

good morning...anyone has ideas about this investment vehicle - senior living fund?

edited April 2017 in Off-Topic
This sounds too good to be true...Cannot find stock/ fund stickers in NASDAQ nor sp500 etc. Is this pyramid scheme scam. Any one invested in this fund-company? Thx for any info

They sent me package stating consistent return 12-21% annually returns past 10-20 yrs....But the more $$ you put in more return - starting at least 50k


  • msf
    edited April 2017
    This looks like a 506(c) advertisement. That's a relatively new SEC regulation that allows private placements to advertise publicly, but they're still restricted to actually selling to accredited investors.

    These private placements are required to file with the SEC, but those filings are minimal. As is typical of private placement companies, this is not a single "fund", but a series of investment pools, so you'll wind up in whichever one is currently not fully subscribed.

    Here are the 506(c) filings I found:
    Senior Living Fund I LLC (min $50K, $12.5K target pool), Senior Living Fund III California, LLC (min $75K, $25M target pool), Senior Living Fund IV USA, LLC (min $50K, $25M target pool)

    Here's the SEC search I used. The 06c in the search is to get the 506(c) filings.

    As to whether this is real or not ... the SEC filings lend a bit of credence. Here's an SEC page "10 Red Flags That an Unregistered Offering May Be a Scam".

    It's been a few years since I looked into assisted living (one subsector of senior housing), but at the time it seemed to be a weakly regulated industry, with even the best states falling a bit short in protecting seniors. This suggests to me that whatever investors earned in the past may not be reproducible. States will gradually wake up to the fact that they've got lots of seniors who vote and who will be very angry if their housing doesn't live up to expectations (let alone is unsafe).

    Here's a summary I found of a recent state-by-state report on assisted living regulations:

    The link given to the full report is wrong, the correct link is: State AL Regulatory Review.pdf

    The overview and the full executive summary (is that an oxymoron?) give you a sense of the demands (and hence the risks) of assisted living. ISTM that once one moves past housing that offers anything beyond "under 55, keep out" (i.e. senior community living), the investment risks are large. Being an "accredited investor" doesn't make one a knowledgeable, sophisticated investor, except in the mind of the SEC.
  • edited April 2017

    You are on a mailing list associated with something from somewhere, eh? I will presume you may receive other offers, in the mail, too.

    In the way back days (this example from 1981) when paper mailings and everything associated was an envelope in the mail; I would "tag" correspondence, a trial subscription or a subscription with a change in my name, by changing my middle initial. One investment subscription I had was tagged with the middle initial of "S". To this day, about 4 times a year on average, I still get investment mail/offerings using the middle initial "S". Mailing lists apparently never die, eh?

    And the "stuff" from the bottom of "their" web page................

    Information on this page is not an offer or a solicitation to sell or purchase securities. Statements, descriptions, and data on this page are for informational purposes only and relate to an investment opportunity which may be offered in the future. No offer or solicitation will be made until the necessary final documentation and agreements have been delivered to you. Forward Looking Statements. The Fund is including the following cautionary statement in this executive summary to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Fund. Forward-looking statements include statements concerning plans, objectives, goals, projections, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. All such subsequent forward-looking statements, whether written or oral and whether made by or on behalf of the Fund, are also expressly qualified by these cautionary statements. Certain statements contained herein, including, without limitation, those that are identified by the use of the words "anticipates," "estimates," "expects," "forecasts," "intends," "plans," "predicts," "projects," "believes," "seeks," "will," "may" and similar expressions, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Fund’s expectations, beliefs and projections are expressed in good faith and are believed by the Fund to have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.
  • "The expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished."

    Should be a mandatory part of every marriage contract! :)
  • thx ...when the returns are too good to be believed, best to stay away
  • Here are a couple of articles (same author) on senior housing investments. The first, from three years ago (June 2014) is a good four page discussion of the sector, including demographics, housing stock, rates of return, etc. and concludes with risk factors.

    The second is a brief summary of returns as of third quarter 2016. Generally it shows senior housing outperforming the overall commercial real estate market by 4-5%. 13% annual return over the past year (through 3Q16), 16.6% over the past three, 15.4% over the past five. This includes both income and appreciation.
  • Current demographics support the concept of senior housing being a good investment alternative. There are several well established REITs in this space if you're looking for something with a bit more conventional and established track record.
  • There are decent health care REITS that invest heavily in senior/assisted/nursing home facilities, VTR and HCP being just a couple, FWIW.
Sign In or Register to comment.