This series of real estate limited partnerships invests in apartment houses and has produced returns averaging in excess of 18% per year for more than 15 years.

The sponsor follows a simple formula: With detailed knowledge of locations, they buy properties in good areas where rents are substantially below market. They fix the units up nicely and aggressively bring rents to market rates. IEC seeks to sell properties within three to four years after they are acquired. Because of the short holding period – usually two-three years – there is less risk than one might think.

The current program will own seven or more apartment houses in Southern California, four of which have been acquired to date. Within months of acquiring these apartment houses, rents were raised 7% or more. IEC began to make improvements on the empty apartments almost as soon as they closed on the properties and when the work was completed, they asked for much higher rents than were previously paid for those units. As soon as IEC believes the apartment houses can be sold for a price that will earn investors a 20% per year return on the investment, they will start marketing the properties.

These investment programs are available for accredited investors only – the minimum investment is $100,000.