If you were contacted through unsolicited calls by someone offering exclusive investment opportunities, you may have been the victim of a REIT scam. Bad actors promise steady income and high returns from supposed real estate investments, but instead, they use investor funds for personal gain. A REIT scam lawyer can recover your losses.
Meyer Wilson has been serving investment fraud victims nationwide since 1999. We dedicated our practice exclusively to securities fraud, focusing on protecting clients from financial misconduct. Call us today to set up a free consultation with our real estate investment scams lawyers.
What Is an REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate. Think of it as a way to invest in real estate without directly buying property.
When you invest in a REIT, you’re buying shares in a portfolio of properties like office buildings, shopping centers, apartments, hotels, or even warehouses. REITs pool money from many investors, which allows you to earn a share of the income from these properties without needing large amounts of capital.
They’re traded like stocks, so they’re relatively easy to buy and sell. Many REITs pay regular dividends, which can make them an appealing option for investors looking for steady income. An experienced investment fraud lawyer from our team will investigate your portfolio and determine if you were involved in a scam.
Understanding REIT Scams
REIT scams often involve misleading or exaggerated claims about the potential income, safety, and liquidity of these investments. Some advisors might present non-traded REITs as “safe” or “guaranteed” investments, downplaying their risks, such as limited liquidity and high fees, which can lock investors’ money for extended periods.
High-pressure sales tactics are also common, where investors are pushed to make quick decisions without adequate information. In many cases, advisors may prioritize their own high commissions over the best interests of the client.
Investors should be cautious of claims about high, steady returns with little risk. Before making any investments, investors should check the qualifications of advisors and investment firms and carefully research the REIT’s history, structure, and fees.
Client-Centered REIT Scam Attorneys
We bring the resources necessary to level the playing field against Wall Street’s powerful forces. While many firms have only one or two attorneys and minimal support staff, we have built an infrastructure that allows us to tackle even the largest and most complex financial fraud cases.
With advanced digital tools, we streamline case management, boost efficiency, and save clients valuable time and hassle. These tools allow us to work faster and more conveniently so you can focus on recovery while we handle the complexities of your case.
Publicly Traded vs. Non-Traded REITs
While both types of REITs offer exposure to real estate assets, publicly traded REITs tend to be more accessible and flexible. In contrast, non-traded REITs might offer higher income potential but come with more restrictions and risks.
Publicly Traded REITs
These are listed on major stock exchanges and can be bought and sold easily, similar to stocks. This provides investors with liquidity, as they can sell their shares at any time during market hours. Publicly traded REITs are also highly transparent, with regular financial disclosures and reporting requirements.
Non-Traded REITs
Non-traded REITs, on the other hand, are not listed on an exchange, meaning they are less liquid and typically have longer holding periods. Investors may not be able to access their funds as quickly and may have to wait for specific redemption periods.
Non-traded REITs, in particular, can be marketed as “safe” investments when, in reality, they carry unique risks, such as unpredictable market valuations. In some cases, advisors have pushed these products to earn high commissions, regardless of the investor’s financial goals or risk tolerance.
File an Arbitration Claim Against a Registered Representative
Fraudulent REITs can be difficult to trace, and it can be challenging to recover your money. However, our experienced REIT scam lawyers will investigate your portfolio and represent you during FINRA arbitration.
The Financial Industry Regulatory Authority (FINRA) oversees the regulation of brokerage firms. As a non-profit entity, it safeguards investors by making sure that the securities industry functions fairly. Many investment agreements, including those involving REITs, include arbitration clauses that require disputes to be settled through this process.
The majority of REIT scam cases are resolved through arbitration, which provides a private and more streamlined alternative to traditional court litigation. In arbitration, both parties present their arguments to an impartial arbitrator or a panel, who then makes a binding decision.
Do I Have Grounds for Arbitration?
If you have suffered losses in your investment portfolio due to your advisor’s negligence, you might not know if you have a valid claim. Even if you are unsure, please reach out to our REIT scam attorneys. We will review your portfolio transactions and determine whether you can pursue arbitration.
You could pursue arbitration for a REIT scam if:
- The advisor was careless by not properly checking the security before recommending it to you.
- The non-public REIT might have been too risky for your investment goals.
- The non-public REIT had very high fees, making it a poor investment choice from the start.
- The advisor may have made false claims about the REIT or failed to share important information.
As a victim of a real estate investment scam, you have the right to recover your losses. While the financial recovery process may seem overwhelming, you don’t have to go through it alone. Our REIT scam attorneys will compassionately guide you through every step.
Call Our Experienced REIT Scam Attorneys Today
Standing up against a professional advisor can feel stressful, but you don’t have to navigate this challenge by yourself. Partner with a FINRA litigation attorney to improve your chances of a favorable outcome.
At Meyer Wilson, our team has assisted thousands of clients in building a stable financial future. Contact us today to discuss your case and take the first step toward reclaiming your financial security.
