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FINRA vs. VFG Securities – The Battle over Nontraded REITs

We have long warned about the problems with nontraded REITs. Unlike traditional REITs, the non-traded variety are illiquid. That means if you have to sell one quickly to raise capital you may find yourself with no ready buyers. The lack of liquidity isn’t the only problem with nontraded REITs. Regulators don’t like them because they […]

LPL Fined Over Nontraded REITs

LPL Financial must pay $1.4 million in fines after reaching an agreement with state securities regulators. The fines stem from a multi-jurisdictional review of the brokerage firm’s sales practices involving nontraded REITs. LPL is the largest independent brokerage firm in the United States. The term REIT refers to Real Estate Investment Trust. Authorized by Congress […]

G. Andrew Ahrens and Ahrens Investment Partners

If you are a customer of Ahrens Investment Partners of Lafayette, Louisiana and are concerned about your account, you should call the investor advocates at Chapman, LLC. You will talk to an experienced, knowledgeable attorney who will evaluate your situation without charge. On August 4, securities industry regulator Financial Industry Regulatory Authority notified G. Andrew […]

Experts Warn of Looming Real Estate ETFs

For years, investors have been chasing yields. With bank interest rates under 1%, investors have been scouring the market looking for better rates of return and Wall Street has been happy to respond. Long gone are the days when investors looking for income had just a few choices – bonds, preferred stock or Treasuries. Now […]

Nontraded REIT Sales Down Dramatically

We have been warning about the risks surrounding nontraded REITs for many months. These products are illiquid, tough to value and carry high commissions and fees. While they may have some value to institutional investors, they should never be included in the portfolio of retirees, those nearing retirement or those needing access to their funds. […]

CNL Lifestyle REIT Share Value Plunges

Another nontraded REIT has apparently plunged in value. Over the last year, the value of CNL Lifestyle Properties REIT has plunged 24% in value. While real estate values continue to climb, this REIT has been dropping like a boat anchor. It is the second major drop in two years. Because CNL Lifestyle is a nontraded […]

2014 Nontraded REIT Enforcement Roundup

2013 saw regulators rushing to warn investors about the dangers of nontraded REITs. Despite the warnings, investors continue to find themselves trapped in unsuitable REIT investments. This year regulators took aim at several REITs and the brokerage firms that sold them. Short for Real Estate Investment Trust, REITs are a popular way to invest in […]

FINRA Gets Well Deserved Praise for Nontraded REIT Rule

For several years, regulators have talked about toughening up rules on nontraded REITs. There are many ways to invest in large real estate projects. Real Estate Investment Trusts – REITs – are especially popular because they let ordinary investors pool their money and invest in shopping centers, apartment buildings and office parks. Not all REITs […]

Another Nontraded REIT Horror Story

As regulators continue to drag their feet about concentration limits and better disclosures for certain REIT products, several more people have apparently been victimized by an overly aggressive stockbroker selling high risk private placements and nontraded REITs. According to an article in InvestmentNews, the Financial Industry Regulatory Authority (FINRA) filed a complaint against a “broker […]

Another Big Nontraded REIT Plans Liquidity Event

If you follow this blog regularly, you probably know two things. Nontraded REITs (Real Estate Investment Trusts) are non liquid meaning they can’t be readily sold. Buy one and you might be stuck with it for a decade or longer. The other take home has been the difficulty in figuring out what they are worth. […]