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Articles Tagged with real estate investment trusts

Non-Traded Real Estate Investment Trusts Are Risky, Illiquid 

If you are a retail investor in San Francisco whose broker is recommending that you invest in non-traded real estate investment trusts (non-traded REITs), you should strongly reconsider. 

While often touted as a security that allows investors to make money without having to worry about market volatility – this type of investment is actually still high risk, illiquid, and not suitable for many customers including retail investors, retirees, and other conservative investors with low-risk tolerance levels.

For thirty years, Shepherd Smith Edwards and Kantas (SSEK Law Firm) has worked with investors seeking to recover losses they suffered because a broker and their broker-dealer sold them real estate investment trusts (REITs) that were too high risk for their portfolios. The unsuitability of REITs for many investors has come even clearer in the wake of the coronavirus (COVID-19) outbreak and its impact on many investments.  

REITs are not for every kind of investor and a stockbroker should only recommend them if the customer can handle the risks involved and these investments can help fulfill, rather than derail, the client’s goals. Contact our REIT fraud law firm today if you have suffered substantial losses involving your real estate investment trust that you suspect may have been caused by broker fraud or negligence. 

What Are REITs?

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