Very Limited Partnerships

Back in the 1980s, I tied up more than $40,000 in a handful of limited real estate partnerships. Over time, my modest gains were eroded by delays, legal problems, unrented spaces, real estate broker fees and steep executive salaries. It took more than 10 years to get out of the investments. I was lucky to break even, but I lost many years' worth of gains that I might have made elsewhere with the money. I was frustrated that there was no secondary market in which I

could sell them. — D.S., via e-mail

The Fool Responds: One major drawback of limited real estate partnerships is that you can end up feeling trapped, as you can't get in and out of them as easily as you can stocks and mutual funds. Investors interested in real estate might want to learn more about stocklike real estate investment trusts (REITs) at www. reit.com and elsewhere. Or investigate real-estate-focused funds such as Cohen & Steers Realty (ticker: CSRSX), Third Avenue Real Estate Value (TAREX), CGM Realty (CGMRX) or Russell Real Estate Securities (RRESX). Look them up at Morningstar.com.

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