Category Archives: Uncategorized

NASAA Takes Aim At REIT Sales

The North American Securities Administrators Association has once again taken aim at REIT sales practices. According to the Wall Street Journal, the group wants to push legislation that would limit the percentage of an individual ‘s net worth that could be invested in nontraded REITs. A REIT is a nontraded Real Estate Investment Trust. Created […]

60% Lost Value A “Good Event”? Behring Harvard REIT Loss Post

Regular visitors to this website know we watch nontraded REITs very closely. Although the industry attracts over a billion dollars per month in new money, nontraded REITs are not suitable for most ordinary investors. There are several reasons for our opinion including their lack of transparency and liquidity. Case in point? Monogram Residential Trust, formerly […]

Hiding in Plain Sight

A recent article in InvestmentNews discussed the duration risks of nontraded REITs and said it was a problem “hiding in plain sight.” Unfortunately for thousands of REIT investors, the predictions are probably 100% accurate. Nontraded REITs that invest in triple net leases won’t be able to distribute cash as rates rise. That could cause a […]

More Bad REIT News – American Spectrum Loses 88% of Value

Although billions of dollars continue to pour into Real Estate Investment Trusts – REITs – many are quite troubled. Recently we posted two stories about Strategic Realty Trust. That REIT lost 29% of its value seemingly overnight. If you thought that was bad, 450 investors in American Spectrum REIT 1 just learned that their shares […]

Strategic Partners “Necessity retail – Now is the time”!

According to InvestmentNews, “Necessity retail: Now is the time!” was uttered by none other than Tony Thompson, creator and former CEO of Strategic Realty Trust, a well known nontraded REIT. Thompson made these remarks to stockbrokers after telling them that they could still bring in investors at $10.00 per share even though he valued the […]

Important Info for Investors in TNP Strategic Realty Trust REIT

Shareholders of Strategic Realty Trust, once known as TNP Strategic Realty Trust, were notified by mail last week that their investments in the popular nontraded REIT had dropped by over 29%.  Although it is hard to find solid data about thinly traded REITs, it appears that much of the drop is attributable to fees. As […]

Don’t Believe Us? Listen to the Wall Street Journal!

Last week’s Weekend Investor section of the Wall Street Journal featured an article titled “The Most Dangerous Investments.” Number one on their list? Nontraded Real Estate Investment Trusts – REITs! We understand that REITs are one of the hottest things on the market today. Investors dissatisfied with low interest rates and returns have been flocking […]

REIT Fraud Alert – Paul Larsen

The average stockbroker has no disclosure events on his or her record. That is pretty admirable.  A tiny percentage have 3 or more. And then there is Paul Larsen (Paul Cragg Larsen). According to the Financial Industry Regulatory Authority – FINRA – Larsen racked up 15 events in just 4 years. For those new to […]

Can You Name Some of the Most Popular Non-Traded REITS?

“Can you provide the names of some of the more common nontraded or illiquid REITs” is a question we frequently hear. Investors are beginning to heed the warnings of regulators and be suspicious of these investments. Many folks now steering clear of these products. Before we name names, some explanation is necessary. REITs – short […]

Broker’s License Suspended for Fraudulent REIT Investments

businessman in jail

Michael Hainsworth of Fort Myers, Florida, will not be trading or selling securities for at least 30 days because of securities fraud and misrepresentations he made to investors.   Hainsworth pleaded no contest to several allegations during a Financial Industry Regulatory Authority (“FINRA”) investigation.  While working for Ameriprise Financial Services Inc., Hainsworth sent numerous emails to […]