For those of you that have been working with me for a while, you are probably aware of my distaste for private R.E.I.T.’s and many products that are pitched by other investment advisors. As an insider in the financial services industry I’ve long since been amazed and sadly disgusted at the lack of both knowledge and ethics that some people show. Private R.E.I.T’s are products sold often with a 7% commission up front, that are totally illiquid securities. If for some reason you have to get out, you may or may not be able to get your money by paying a huge breakup fee. This fee can be 10-20% of your principal. Even worse the valuations are often ludicrous but somehow these companies didn’t have to mark their assets to market, and the only time investors would find out they lost money was when they would try and pull their money out. There are publicly traded R.E.I.T’s where you pay a regular stock commission, and that are very liquid, and are accurately valued. Below is an article where you can find more details on these products.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.