A private REIT (or private-placement REIT) is similar to a non-traded REIT, but they are not exactly the same thing. While a private REIT is also not traded on any public exchange, it is generally not subject to the same regulatory oversight or disclosure requirements afforded to other types of REITs.
An investment in private REITs can be extremely risky for investors, and it is extremely difficult to find the information you need to make an informed decision about these investments.
Keep in mind, also, that most private REITs can only be sold to "accredited investors," as defined by the US Securities and Exchange Commission (SEC).
If you are suspicious of a private-placement REIT, do as much research as you can and consider reviewing it with a financial expert you trust. If you fear you've already lost money on a private REIT, or that it was recommended as an unsuitable investment, contact the FINRA lawyers with Meyer Wilson today for a completely free consultation. We are experienced investment fraud attorneys who are ready to represent you in stockbroker mediation, arbitration, or litigation and help you recover your losses.
If you'd like to learn more about avoiding risky and unsuitable investments, request your free copy of our book Five Signs of Investment Fraud... And What to Do if it's Happened to You.