FINRA has issued an investor alert regarding the issues associated with non-traded REIT investments. REITs are real estate investment trusts that pool investors money to purchase, manage or invest in income producing real estate such as office buildings, apartments or shopping centers.
FINRA makes the point that non-traded REITs are often very complex investments that can lead to problems for investors such as high fees and liquidity problems.
As always, an investor should review all available information before deciding to move forward with any particular investment. Non-traded REITs should be carefully examined to ensure that they satisfy the investors goals and objectives. Any investor considering such an investment should review FINRA’s guidance before moving forward.