Services Provided

Buying

There are unique investment opportunities in the secondary market for limited partnerships and REITs. Buyers can purchase product (subject to availability) in a wide variety of asset categories, at a discount to book value. The financial reports of these publicly registered securities can be accessed through the Edgar system sponsored by the Securities Exchange Commission (www.sec.gov).

Buyers can list their interest in specific partnerships/REITs and will be contacted when the opportunity to bid on these securities arises. If a purchase is made, money is escrowed at CIT Bank until the title transfer is verified in writing at which point the seller proceeds are disbursed.

Selling

Limited Partnerships and REITs were sold as long term, illiquid investments. However, a need for liquidity may arise for numerous reasons including death, divorce, and financial distress.

APS will act as a seller's agent to locate the best current market price for the REIT or partnership shares. Due to an extensive database of buyers, pricing offered will be very competitive. Prices quoted will be net of commission and fees which include third party fees associated with the transaction, i.e. state filing fees, transfer agent fees, bank escrow fees, and administrative fees. The commission will be fully disclosed according to FINRA regulations on the customer confirmation statement.

APS believes that customers deserve competitive pricing terms. Thus, compliance with prescribed NASD/FINRA pricing rules is an expected part of the daily order execution routine. These rules include NASD Conduct Rules 2320 & 2440. Sales staff obtains bids from at least three market sources whenever possible to ensure that the units are sold at the prevailing market price.

Trade Processing

  1. The seller or seller's agent calls the trading desk requesting bids on an unsolicited basis.

  2. The trading desk representative seeks bids from an extensive database of buyers.

  3. The representative contacts at least three buyers for bids, according to the FINRA regulations of "best execution." These trades are considered to be "agency" as buyers set the price based on their personal evaluation and prior trades in the secondary market.

  4. The seller is contacted with the best of at least three bids. If the seller accepts the bid and commits to sell the units, the transfer agent is contacted to verify the seller's ownership and registration information and a sales contract is sent by mail, fax or email to the seller.

  5. When the seller’s properly executed sales contract is received, a buyer is contacted and sent a purchase contract. The buyer returns the contract to the APS office and sends the purchase funds directly to the PacTrust Bank escrow account.

Required Documentation:

  1. The written contracts are filled in with the following information: trade date, assignment date, price, commission & fees, partnership name, number of units, and exact seller/buyer registration. These contracts also include a power of attorney authorizing APS to execute all pertinent documentation necessary to transfer title.

  2. Additionally, the first time buyer or seller who is not represented by another brokerage firm will fill out a new client suitability application. The completed forms are signed and returned with a photocopy of a current driver’s license or government issued ID.

  3. If the shares are held in an estate, trust, partnership or company name, we will need additional supporting documentation. Possible additional required documents include trust document pages, power of attorney, certified death certificate, current letters testamentary, and corporate resolution. We may also require a copy of a valid photo ID.


Submittal to Transfer Agent for Title transfer

When both buyer's and seller's properly executed contracts are received and the purchase amount has arrived in escrow, a transfer package is prepared and sent to the transfer agent to process the title transfer.

Closing the Trade

Seller is sent the proceeds of the sale, buyers are paid distributions owed, and commissions and fees are paid.

Both seller and buyer receive a closing and confirmation statement. These statements include: number of units, partnership name, trade date, ex-dividend date, and disclosure of commissions & fees.

Alliance Partnership Services
1160 Brickyard Cove Road, Suite 106
Point Richmond, CA 94801

Trading Desk: 800-990-5604
Customer Service: 800-898-8109
Fax: 510-235-9539
Office Hours: 8:00am to 4:30pm PST