The Florida Bar Board Certified
Connecticut Bar Association
American Bar Association
American Arbitration Association
American Association for Justice
Center for International Legal Studies
Lawyers of Distinction 2020

Non-Traded Reits

A recent study by SLCG concludes that non-traded REIT’s [Real Estate Investment Trusts] should not have been sold to almost any investor.

This is due to the following factors:

  • Non-traded REIT’s charged more than $15 billion in up-front fees;
  • Non-traded REIT’s are fraught with conflicts of interest;
  • Sponsors pay corrupting upfront fees and commissions of approximately 13.2% to induce brokers and advisors to recommend non-traded REIT’s;
  • Non-traded REIT’s sponsors and affiliates have complete power and control of non-traded REIT’s; and
  • Institutional investors almost never invest in non-traded REIT’s therefore there is no ability for shareholder discipline.[1]

Open end real estate mutual funds and closed end traded funds provide exposure to the same market segment with none of the disadvantages of the non-traded REIT’s. The study concludes that advisors and brokers cannot justify the recommendations to purchase a non-traded REIT’s, when their interests can be clearly better served by a low cost mutual fund, or a closed end fund, or an individual REIT managed by folks with incentives to construct a diversified portfolio of the best real estate investments.

For more information and a free consultation about how to recover losses your portfolio suffered due to negligence, misconduct, or investment fraud by a financial advisor or brokerage firm, contact Attorney Howard Rosenfield at (860) 677-4334 or email howardrosenfield@stockbrokerproblems.com.

Attorney Rosenfield is also available to speak on specific subject matter topics related to advisor negligence, misconduct, or investment fraud.

[1] Fiduciary Duty and Non-traded REIT’s available at SLCG.com

Client Reviews
Howard Rosenfield is truly a life saver. After months of working with my financial advisor, I found out he was making risky investments without my knowledge. When I discovered how much money I lost, I thought there was nothing I could do. Howard explained all the difficult terms and what exactly my financial advisor did wrong. If it wasn't for Howard, I would never have recovered my losses and would be under extreme financial distress to this day. J.
Howard’s experience and advice throughout this ordeal was invaluable and reassuring. The law in general is complicated, difficult to understand and very personal. Financial misappropriation is even more personal but Howard’s years of experience and calm demeanor helped keep me calm, focused and moving forward. For anyone in need of a knowledgeable and experienced Investment Recovery Attorney I strongly recommend Howard. Laura
I was filled with anxiety and stress when I selected Attorney Howard Rosenfield to represent me. Instantaneously, I felt comfortable and at ease. Attorney Rosenfield listens attentively to the facts and asks questions and competently reiterates and verifies the accuracy and completeness of my statements. Perseverance, trustworthy and superb legal and communication skills mark Attorney Rosenfield to be one of the best in his field of law. Helen