How can I avoid investing in a REIT scam?

 

A: While an investment in a real estate investment trust (REIT) can work in an informed investor's diversified portfolio, it's important to first really understand what you're investing in. As with any investment, taking just a few extra steps before you invest can help keep your cash safe and working for you.

Before you invest in a REIT, be sure to:

• Take a look at the REIT's performance over time. Take a look at how the REIT has done on the stock market, if it is a traded REIT, and/or request its documentation over a period of several years. 
• Ask questions. As investment fraud attorneys, we cannot stress this enough. If there is something you do not understand, ask for a detailed explanation. If you don't understand what a REIT is and how it works, then you shouldn't invest in it.
• Ask an investment fraud lawyer. Reviewing the REIT's paperwork with an attorney you trust can help you recognize the language that fraudsters use to hide the facts and take your cash.

The Law Firm of Meyer Wilson represents victims of REIT scams in stockbroker mediation, arbitration, and litigation. If you have been the victim of a REIT scam or other investment fraud, contact one of our respected FINRA lawyers today at 1-866-8-BROKER (1-866-827-6537).

Education is power -- request a free copy of David P. Meyer's book Five Signs of Investment Fraud ...And What to Do if it's Happened to You.