Jeffrey Pederson is a REIT loss lawyer who has helped investors recover securities losses for over 20 years. Contact us or call us at 844-253-5858.
Brokers and financial advisors are paid heightened commissions for the sale of REITs, in particular non-traded REITS. Non-traded REITs are REITs not traded on the NYSE or NASDAQ. Securities regulators have identified this problem. Non-traded REITS can pay a broker or advisor up to 15% while most stock investments pay only around 1%.
Non-traded REITs have always been known in the securities industry to be a speculative investment. These investments failed previously, and the re-modelled versions are failing in the same fashion.
These investments are also commonly sold as safe or secure investments. This is a misrepresentation. Regulators identify the investments as high risk that can suffer significant losses or lose their entire value.
Non-traded REIT investments are generally illiquid. Regulators have warned brokers and advisors about selling REITs to investors needing liquidity. Those approaching retirement age, and those actually retired, need liquidity to meet medical and other needs. Investment professionals who do not address or misrepresent the liquidity of these investments commit fraud.
We work with investors to recover REIT loss. The negligence and fraud associated with recommending these high-risk investments often require participation in FINRA arbitration. This is a unique process and most attorneys lack sufficient experience to obtain recovery. We have helped investors recover losses through investor arbitration for more than 20 years.