HPI MHC Real Estate Fund XI LLC: Investigating Potential Securities Claims

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended HPI MHC Real Estate Fund XI LLC to investors.

Hamilton Point Investments LLC (“HPI”) is a real estate private-equity investment company that owns and manages multifamily apartment properties, manufactured housing communities and hotels, according to its website.

HPI Funds reportedly acquires manufactured housing communities in partnership with Manufactured Housing Partners LLC.

The company reportedly filed a form D to raise capital from investors for a real estate investment in 2022 for the offering HPI MHC Real Estate Fund XI LLC, according to this SEC filing. The total offering amount was purportedly $50,000,000, according to the Reg D.

Risky Investments – REG D Private Placement Investments

Regulation D, and SEC regulation, allows small to midsize companies an opportunity to raise capital from investors with less expense and reporting requirements than traditional means, making it quite popular.

Often these private placement investments are touted for their income potential and for being “non-correlated” to the stock market.  Too often the financial advisor or broker ignores and/or fails to disclose the risks involved in these investments.

Private placement investments such as HPI MHC Real Estate Fund XI LLC, are typically illiquid investments. There are often legal or contractual restrictions on your ability to transfer your holdings, and even if sale of your holdings is permitted there may be no buyers. You may need to hold these securities for an indefinite period of time.

Companies that issue unlisted securities may provide little or no transparency into their ongoing operations and financial condition.

While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment– sometimes close to 10% of the client’s total investment.

Help for Investors

The White Law Group has represented numerous investors in claims against their brokerage firms for improperly recommending private placement investments.

In those claims, the firm has asserted, among other things, that the investments were (1) high-risk and inappropriate for our clients based on their financial circumstances, needs, and investment goals, (2) that the full risks associated with the investments were not adequately disclosed to them, and (3) that the brokerage firms responsible for selling the investments failed to perform the required due diligence in accordance with FINRA Rules.

The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

Free Consultation with a Securities Attorney

If you are concerned about your investment in HPI MHC Real Estate Fund XI LLC, you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.