From Our Tampa, FL Securities Law Office, Our Florida Non-Traded REIT Attorneys Represent Investors Against Negligent Brokers
Please contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today if you are an investor who lost money in a non-traded real estate investment trust (non-traded REIT) that was recommended to you by your financial advisor. Unfortunately, while this kind of alternative investment is generally open to retail investors, retirees, and seniors throughout Florida, too many losses of late have led to FINRA lawsuits against the broker-dealers that marketed and sold non-traded REITs to customers.
What Might Your Broker Have To Do With Your Non-Traded REIT Investment Loss?
Generally, a non-traded real estate investment trust runs, finances, or operates income-producing real estate, such as apartment buildings, commercial buildings, office buildings, shopping malls, or other commercial properties. This is attractive to investors who are interested in getting involved in these types of real estate properties but wouldn’t be able to otherwise. But that doesn’t mean non-traded REITs don’t come with certain risks:
- Illiquidity can make it tough for a Florida non-traded REIT investor to resell their shares.
- Non-transparency can make it difficult for an investor to find out the non-traded REIT portfolio’s true value.
- Any redemption programs might have severe restrictions and the program could even be cancelled.
- Dividend payments may end up coming from investors’ pooled money instead of property income, which may lower share value and cash flow.
- Distributions might be heavily subsidized or from borrowed funds.
- If the non-traded REIT goes public or there is a liquidity event—making it easier for investors to sell their shares—however, the share price will have likely dropped significantly.
- High upfront fees and other costs can eat into someone’s investment a lot—up to 15%!
Because non-traded REITs are typically long-term investments (seven years or more), this usually makes them unsuitable for conservative retail investors, retirees, and seniors from the start. Yet our Florida securities law firm cannot tell you how often we have spoken to prospective clients who lacked the risk tolerance level needed for a real estate investment trust to be an appropriate recommendation for them.
Unfortunately, there are financial advisors that will unsuitably recommend a non-traded REIT, downplay the risks (known as misrepresentations and omissions), overconcentrate a retail investor’s account with too many alternative investments, or ignore a customer’s best interests because the high commissions and fees proved to be too much of a temptation. Then, there are the brokers who, due to poor training or negligence, will sell a non-traded real estate investment trust to a customer even though it is not an appropriate fit for them.
Even if the non-traded REIT’s plunge in value did not have anything directly to do with your financial advisor’s actions, if stockbroker fraud or carelessness played a part in your involvement, you still may be able to sue for damages.
Shepherd Smith Edwards and Kantas Is Investigating Broker-Dealers That Sold The Following Non-Traded REITs To Florida Investors:
- Hospitality Investors Trust
- Blackstone Real Estate Income Trust
- Healthcare Trust REIT
- RAD Diversified REIT
- NorthStar Healthcare Income REIT
- Watermark Lodging Trust
- Starwood Real Estate Income Trust
- Arc Realty Finance
- Hartman vREIT XXI
- Cole Capital REITs
- KBS Real Estate Investment Trust III
- Moody National REIT II
- Many more.
How Can Our Florida Non-Traded REIT Attorneys Help?
Losses from a non-traded REIT can be significant. This is not the kind of legal case you want to pursue without knowledgeable Florida real estate investment trust loss lawyers by your side.
Your first step is to call us today so we can help you evaluate whether you have grounds for suing your broker-dealer that should have been properly monitoring your account. Failure to supervise is one of the most common allegations made in non-traded loss lawsuits.
If we decide to work together, you can trust that you will receive seasoned securities representation and personalized attention as we dedicate our efforts to building you a solid claim that can maximize your chances for a full financial recovery. In arbitration, mediation, and litigation. Shepherd Smith Edwards and Kantas has represented thousands of investors in more than 1000 matters.
More than 90% of our clients have received full or partial financial recovery through our skilled efforts and hard work.
How To Reach Our Tampa, Florida Non-Traded REIT Attorneys
Contact us online, or, in Hillsborough County, Miami-Dade County, Broward County, Palm Beach County, and throughout The Sunshine State, call (813) 560-2992 or (800) 259-9010.
Our Florida Non-Traded REIT Attorneys Office:
407 N Howard Ave #201A
Tampa, FL 33606