Dugan Kelley breaks down how to read a Private Placement Memorandum, the document that tells you how you could lose your money in an investment. The risk section should come first and spell out exactly why you might not want to invest, whether it's multifamily, self-storage, or bowling alleys.
Yes, I know I could lose my money or potentially some of my money, but how, how could I lose my money? So walk us through a PPM. What are the big building blocks? And, you know, how do we read this thing? If you're listening to this right now and you're thinking about, man, I really want to invest in multifamily or self-storage or maybe even like a bowling alley, it doesn't really matter. But the key ingredients inside that private placement memorandum are the same. First and foremost, it's comprised of the the risks. So if you're a retail investor, what the hell are the risks involved in this? Yes, I know I could lose my money, or potentially some of my money, but how, how could I lose my money? Every PPM should start out with being able to describe to the investors what are the risks associated with the transaction, all the reasons why you shouldn't invest, basically. Absolutely.
