Monthly Archives: February 2014

What’s Your REIT Worth? Hint: The Answer May Not Be On Your Statement.

Risk management flow chart

Anyone reading this blog knows we are not happy with the REIT industry. While REITs represent a great way to invest in larger real estate projects, stockbrokers and investment advisers have a terrible track record of placing investors into these products. We are not the only ones to hold this opinion. The SEC, FINRA (the […]

Non-Traded REITs – $20 Billion Per Year And Growing (so are the REIT Losses)

WINNER-LOOSER

According to InvestmentNews, a leading securities industry trade publication, a record $20 billion in new non-traded REIT investments were sold last year. That number is nearly double the $10.3 billion sold in 2012. While many of these investments are solid, too often brokers are selling them to the wrong people. Unfortunately, that means REIT losses […]

Regulator Lists REITs, Unsuitable Investments as High Priorities in 2014

I

Regulator Lists REITs, Unsuitable Investments as High Priorities in 2014. The Financial Industry Regulatory Authority – FINRA – outlined its 2014 enforcement priorities. Each January, the securities regulator publishes its list of priorities to highlight significant risks that could hurt investors and securities markets. Suitability Topping the list this year is suitability, something that has […]

Example of a Problematic REIT Portfolio

follow me in letterpress type

A recent Financial Industry Regulatory Authority (FINRA) Letter of Acceptance, Waiver and Consent (AWC) (No. 2012032353201) entered into with FINRA by John Towers of VSR Financial Services, Inc. in Plano, Texas, sheds light on some problems associated with investments in REITs. Towers entered into the AWC with FINRA to resolve allegations made by FINRA that […]

More Info on Columbia Property Trust REIT

bad apples

We first wrote about Columbia Property Trust REIT (CXP) in early January. At that time we reported how after a 4 to 1 reverse split, many investors saw the share price of Columbia decrease by 45%. Nontraded REITs (Real Estate Investment Trust) are hugely popular but aren’t for everyone. They are far more speculative than […]

Schorsched Earth

CEZAR

“The Rise of a REIT Empire“ Pop-quiz, hot-shot: what do all the following firms all have in common?:   Denver-based Cetera Financial (formerly Multi-Financial); Atlanta-based brokerage firm J.P. Turner; First Allied Securities, based in San Diego; Investors Capital Services ; Summit Financial Services; a) they are all independent broker-dealers; b) they have all been purchased […]

Advisor to the Stars Barred from Securities Industry – REIT Fraud

STARS

The average stockbroker has no customer complaints or disciplinary actins on his or her record. A few have one or two complaints. And then there is Bambi Holzer. Her securities “rap sheet” is an astonishing 114 pages long. Finally, in late December the Financial Industry Regulatory Authority (FINRA) barred her from the securities industry. Her […]

The Many Problems Associated With Nontraded REITs

NEST EGG

As lawyers that assist investors who were defrauded or misled by stockbrokers and investment advisors, we hear horror stories every day. Many of those stories center on illiquid or nontraded REITs These stories include elderly investors whose brokers told them to invest in thinly traded REITs, people who can’t redeem or sell their REITs despite […]

Addressing the Valuation Problems Associated with Nontraded REITS

HOTEL-REIT

As readers of this site are unfortunately well aware, one of the many problems associated with a nontraded REIT is that of unknown valuation. For too long the default pricing of a nontraded REIT has been $10.00 per share. That is $10.00 per share regardless of all factors. That is $10.00 per share even though […]

Fraud Alert – Columbia Property Trust

FLYING MONEY

Investors in Columbia Property Trust, a popular non-traded REIT, got some bad news in late 2013. Columbia’s investors learned their investment had actually lost value while similar traded REITs doubled in value. Columbia began raising money in 2004. Like many non-traded REITs, it claimed a value of $10.00 per share. The real value of nontraded […]