LPL Financial REIT Investigation Is a Reminder to Do Your Research

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 every investor.

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.


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