If you read our previous blog post, you probably already understand the general
risks of REITs. However, you may still have questions about what makes an unlisted REIT
like Apple REIT 10 specifically risky for the average investor.
Here are a few things to keep in mind when you hear that an unlisted REIT
is a “low risk” opportunity:
Unlisted REITs draw higher commissions and fees. Because about 10% - 15% of your investment goes into paying commissions,
upfront costs, and ongoing fees, the REIT needs to deliver a much larger
return to compensate.
Unlisted REITs are more difficult to sell. Unlisted REITs do not trade on national exchanges and can be difficult
to sell, especially when things start going wrong and share repurchase
The value of unlisted REITs may be inaccurate.A publicly traded REIT is subject to daily market fluctuations, but an
unlisted REIT has no active market and may appear artificially stable.
By the time an unlisted REIT is revalued, it’s too late.
Although unlisted REITs may have a place as a small percentage of an experienced
investor’s overall portfolio, targeting inexperienced or elderly
investors who are looking for a low-risk opportunity is inappropriate
and may constitute investment misconduct.
If you have lost money or had your investments frozen in the Apple REITs
recommended by David Lerner Associates, contact an experienced
FINRA lawyer today at (888) 390-6491 or by filling out our online form at the top of