San Diego Non-Traded REIT Fraud Law Firm
Representing Southern California Investors Against Financial Advisors For Over 30 Years
From our San Diego securities law offices, Shepherd Smith Edwards and Kantas (investorlawyers.com), is representing California investors who sustained losses in non-trade real estate investment trusts (non-traded REITs) that were unsuitably recommended to them by their stockbroker or investment adviser. These real estate investments are generally open to retail investors. However, that doesn’t mean that non-traded REITs should automatically be sold to them.
Unfortunately, the high commissions and fees that financial advisors can earn from these alternative investments may compel some of them to ignore a customer’s best interests and involve them in a non-traded REIT even when it is too risky, especially given their age, risk tolerance level, or financial objectives.
For decades, our trusted Southern California non-traded real estate investment trust loss lawyers have helped investors recoup their money from negligent or fraudulent broker-dealers. Our securities law firm also represents clients in the northern part of the state out of our San Francisco office. Contact us today to schedule your free, initial case assessment.
Why Can Non-Traded REITs So Risky For Investors?
Like other real estate investment trusts, a non-traded REIT is an investment vehicle that is supposed to make money for investors through its portfolio, which may include hotels, apartment buildings, storage facilities, office buildings, healthcare facilities, retail centers, or other commercial properties. However, non-traded REITs, while regulated by the Securities and Exchange Commission, are not listed on any exchange or publicly traded. This can bring unique risks.
Because non-traded REITs are illiquid, it can be difficult for an investor to resell their shares, which may not even be allowed for years. Due to a lack of transparency, researching this investment can be hard. This makes it tough to assess a non-traded real estate investment trust’s actual value. If a redemption program is offered, there are likely substantial limits that could cause an investor to lose money. The program may even be canceled.
Also, dividends that are paid sometimes end up coming from the pool of investors’ funds and not from income made by properties. This can reduce cash flow while lowering share value.
Upfront fees of up to 10% can also take a bite out of investors’ money. There may be other fees involved. It is not uncommon for 15% of a non-traded REIT investor’s money to go to all of these charges rather than into their investment.
In the event that a liquidity event occurs or this investment does go public, reselling shares may be easier. However, either event could lead to a huge reduction in share price for investors.
What Do Brokers Have To Do With Non-Traded REIT Losses?
Unfortunately, financial advisor misconduct or negligence can be a factor, especially if a broker unsuitably recommended a non-traded REIT to an investor, omitted or misrepresented key information, or overconcentrated a client’s account in too many risky alternative investments. When stockbroker misconduct happens, and money is lost, the investor may be able to sue for damages. A broker-dealer’s failure to supervise their registered representative, allowing for fraud or negligence to occur in a customer’s account, can also be a reason for filing a non-traded REIT lawsuit.
How Can Our Knowledgeable San Diego Non-Traded REIT Recovery Attorneys Help?
When you work with us, you are retaining our entire securities firm that has more than a 100 years of combined experience in securities law and the securities industry. We have represented investors in more than 1000 matters and have collectively secured many millions of dollars for thousands through arbitration, mediation, and litigation.
At Shepherd Smith Edwards and Kantas, we genuinely care about providing our clients with a personalized, quality experience as we fight for their financial recovery. We know how devastating it can be to find out that your life savings was lost, especially when broker fraud or negligence was involved.
We understand the complex nature of real estate investments, and we know how to identify whether financial advisor misconduct played a role. As a matter of fact, many of us are former stockbrokers who quit because we saw a lot of bad behaviors that were hurting, instead of helping investors. As San Diego non-traded REIT fraud attorneys, we use our knowledge as former insiders of the brokerage industry to protect investors’ legal rights and maximize their chances for a full recovery.
How To Contact Our Seasoned San Diego Non-Traded REIT Fraud Law Firm
Throughout Southern California, including San Diego County, Los Angeles County, Orange County, San Bernardino County, Riverside County, and more, call (619) 550-4847 or (800) 259-9010. You can also fill out this online form.
Our San Diego Non-Traded REIT Fraud Law Firm Office:
1545 Hotel Cir S #150-1
San Diego, CA 92108