What is a REIT | Real Estate Investment Trust
Real Estate Investment Trusts, commonly known as REITs, are illiquid or nonliquid investments that are designed to generate a steady stream of income for investors. REIT investments often offer investors a higher rate of return than investment grade fixed income. Some Real Estate Investment Trusts trade in the public market, while other Non-Traded Real Estate Investment Trusts are priced by varying methods. REITs (Real Estate Investment Trusts) are esoteric investments that are often sold to retirees or other investors seeking income. Investment professionals and their respective employers are required to conduct significant diligence prior to recommending a REIT investment. An investment professional’s research must go beyond reading the offering materials or presenting the materials to prospective investors. The investment professional must understand all the pertinent risks and features, explain those risks and features to the prospective investor, and determine whether such a recommendation is suitable.
REIT Risks: Liquidity, Value, Suitability
Our REIT Fraud Attorneys are currently investigating the following REITs as Potential REIT Lawsuits for Securities Fraud, Stock Broker Fraud and Investment Fraud:
- KBS REIT I
- KBS REIT II
- RPAI REIT (formerly Inland Western REIT)
- Wells REITs
- Apple REITs
- Amidee Capital REITs
- Inland American REITs
- David Lerners Apple REITs
- Behringer Harvard REITs
Investors concerned with REIT Fraud (Real Estate Investment Trust Fraud) should also note that there are substantial liquidity risks associated with REITs as well as redemption risks associated with REITs
REIT Fraud (Real Estate Investment Trust Fraud)
Most investment professionals do not conduct adequate research to truly understand the risks of investing in a REIT. REITS have attractive yields and large commissions. As a result, investment professionals focus on the high yield to attract investor interest, while earning large fees and commissions for the recommendation. Investment professionals often fail to explain what the potential risks are for a particular REIT. Despite the industry mandated training and supervision requirements for brokerage firms and banks, little proactive training or supervision of REIT sales are in place. If you have been sold a REIT investment that is no longer paying a dividend, has suffered significant losses, or shows no value on your brokerage statement, you may have a claim for damages.
Legal Help for Victims of REIT Securities Fraud
If your portfolio has sustained significant losses due to REITs you may have legal recourse. The REIT Fraud Attorneys at Gilman Law LLP, a leading securities fraud and financial fraud law firm with years of experience handling complex securities fraud cases, are here to help you recover damages concerning your REIT claims. For a FREE evaluation of your case, please complete our Free Consultation Form Online, or if you need to speak to a securities attorney right away CALL TOLL FREE (888) 252-0048 today.