Breaking News & Information

LPL Financial Fined Over REIT Sales

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REIT loss recovery has become a hot topic for regulators and investors alike. Last week, the Financial Industry Regulatory Authority – FINRA – fined the nation’s largest independent brokerage firm, LPL Financial, almost $1 million over bad alternative investments sales. Most notable among those alternatives were nontraded REITs. As we have noted before, Real Estate […]

Securities America Under Fire For Nontraded REIT Sales

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According to reporting by a leading investment industry trade publication, Investment News, Securities America, Inc., a Le Vista, Nebraska based independent broker-dealer firm owned by Ladenburg Thalmann & Co., Inc. is again under investigation for its actions with regard to sales of nontraded real estate investment trusts (REITs).  Last year, Securities America was one of […]

Hope for Investors Who Lost Money in Tremont and Rye Select Funds

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The media circus surrounding Bernie Madoff is finally winding down. The Justice Department is finishing up the trials against Madoff’s former management team. With Madoff serving life in prison, the public has relegated Madoff to the history books. Everyone has moved on… everyone except his victims. Thousands of investors will never forget the economic carnage […]

Non-Traded REIT Funds? Buyer Beware (REIT Loss Post)

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There is a new threat in the marketplace according to the SEC, Alternative Mutual Funds. While the name seems benign enough, the SEC warns that some of these new funds are bulking up on nontraded REITS – Real Estate Investment Trusts. REITs are a great way for everyday investors to participate in large real estate […]

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

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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)

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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

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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

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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

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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

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“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 […]