Non-Traded REIT (Real Estate Investment Trust) Losses
There are REITs and there are REITs. Some are publicly-traded; some are not. Brokerage firms seem to have asked themselves, “Why sell our clients publicly-traded REITs that are traded on a stock exchange, cost our clients only $7.95 to buy regardless of the amount, and can be sold whenever the funds are needed, when we can sell our clients non-traded REITs that can’t be easily sold, don’t require public filings and pay us undisclosed commissions of 7-10%?”
Diane A. Nygaard has and is representing many clients who were sold a non-traded REIT (the kind that you can’t get out of easily, and which have cost investors millions of dollars). Berthel Fisher, Ameriprise, LPL, VSR and other firms have sold these in such excessive amounts to their customers that many arbitrations and class actions have been filed. FINRA has also fined securities firms, including Ameriprise and LPL, for selling REITs to people without disclosing that they are high-commission and cannot be liquidated.
Your Right to Recover for REIT Losses
Brokers have sold tens of millions of dollars of Inland American, CNL Lifestyle, Walton, TEI, UDF and other REITs. During the last six years, when the Vanguard REIT index has done almost as well as the stock indexes, these REITs have done very poorly. Some have paid no distributions at all, including Walton Pecan Woods and other Walton REITs. Our clients consistently say that their advisor described the REIT as being a “safe and secure investment” that would pay a higher income than bonds. None of them were told that their REIT could not be sold—or that they might have no distributions or decreased distributions. Many clients are retired and had relied on the REIT income they were promised for retirement income.
Nygaard has and continues to represent many REIT owners in FINRA arbitrations, which is described under the FAQs section. She has helped some investors sell their REIT through secondary market makers, and then have obtained additional compensation for them.
If you have losses from REITs, contact Diane Nygaard at email@example.com or submit the online form below.