REITs Not Ideal for Every Investor, May Lead To Investment Losses
Non-traded real estate investment trusts (REITs) are notoriously confusing
investments, and even FINRA has warned that these investments aren’t
usually suitable for the average investor—especially senior investors.
With our recent investigation into the
non-traded REITs sold by LPL Financial, LLC, we thought it was a particularly good time to go over how to do your
research when it comes to non-traded REITs.
Along with the usual research you do (like taking advantage of
FINRA’s BrokerCheck and the SEC’s EDGAR database), here are just a few of the additional
issues you should look into before investing in a non-traded REIT:
- Fees and commissions associated with the REIT
- The tax consequences of investing in a REIT
- Liquidity issues
- The actual value of the non-traded REIT
- How distributions are funded
It’s important to understand that REITs are complicated investments,
even though the pitch can sometimes be misleading or make the product
seem “safer” than it really is. Although REITs are often painted
in a high-yield and low-risk light, they are by far more complex than
some sales literature would have you believe and are not suitable for
If you purchased a non-traded REIT from LPL Financial or another brokerage
firm, please contact one of our experienced
investment fraud lawyers for a FREE and confidential legal consultation to talk about your circumstances.
Meyer Wilson has successfully represented hundreds of clients nationwide in
stockbroker mediation, arbitration, and litigation, and we look forward to working with you.