Can I Recover Losses for Non-Traded REITs and/or other Non- Conforming/Alternative Investments?
Can I recover losses if my Broker or investment advisor recommended Non-Traded REITs and/or other Non- Conforming/Alternative Investments? The short answer is maybe. See below:
Investing in a non-traded real estate investment trust (REIT) or Business Development Company (BDC) can be risky, which is why most non-traded REITs and BDCs are typically unsuitable for most individual investors…especially retirees and those with a limited ability to withstand risk and the corresponding loss of capital.
The securities negligence and fraud attorneys at Colling Gilbert Wrigh, PLLC routinely investigate claims of investor losses related to REITs, BDCs and Limited Partnerships (LPs). Some of the “usual suspects” include: American Healthcare REIT; CNL Healthcare Properties; Franklin BSP Lending Corp. (formerly Business Development Corp. of America; FS Energy & Power Fund (Franklin Square); Healthcare Trust, Inc. (formerly ARC Healthcare II); Hines Global Income Trust; Inland Real Estate Income Trust; KBS Growth & Income REIT, Inc.; KBS REIT II; Lightstone Value Plus (I, II, III IV and V); Parking RETI/Mobile Infrastructure/MVP; Moody National REIT II; NorthStar Healthcare Income: Pacific Oaks Strategic Opportunity REIT (KBS Strategic Opportunity REIT); Smartstop Self-Storage REIT, Inc.; Strategic Realty Trust; Summit Healthcare REIT; United Development Fund (III, IV and V).
Non-traded REITs, BDCs. LPs and other non-conforming/alternative investments are generally high-risk and most appropriate for accredited, wealthy and/or sophisticated investors. However, they are popular with financial advisors and registered representatives (brokers) who may earn anywhere from 8-15% in commissions and fees. The second and third tier brokerage and investment advisory firms that employ them share in that windfall (wire-house firms such as Merrill Lynch, Morgan Stanley, UBS and Wells Fargo did not due to more rigorous compliance standards). Not surprisingly, those excessive commissions and fees all too often wrongly incentivize financial advisors to push the products without a proper suitability analysis without regard to the high-risk, illiquid and speculative nature of these products.
Contact Our Alternative Investment Fraud Attorneys Today
If you believe you were inappropriately advised to purchase any of these investments, please contact our skilled alternative investment attorneys. We will review your potential case free of charge and determine your best option for recovering your losses. Often that would involve pursuing your claim through the Financial Industry Regulatory Authority (FINRA) arbitration forum where our securities attorneys have successfully resolved hundreds of cases nationwide.