Call Now For a Free Consultation:
(614) 502-6165

How Are Unlisted REITs Like Apple REIT 10 Potentially Unsuitable for Me?

If you read our previous blog post, you probably already understand the general risks of REITs. However, you may still have questions about what makes an unlisted REIT like Apple REIT 10 specifically risky for the average investor.

Here are a few things to keep in mind when you hear that an unlisted REIT is a “low risk” opportunity:

  1. Unlisted REITs draw higher commissions and fees. Because about 10% - 15% of your investment goes into paying commissions, upfront costs, and ongoing fees, the REIT needs to deliver a much larger return to compensate.
  2. Unlisted REITs are more difficult to sell. Unlisted REITs do not trade on national exchanges and can be difficult to sell, especially when things start going wrong and share repurchase programs disappear.
  3. The value of unlisted REITs may be inaccurate. A publicly traded REIT is subject to daily market fluctuations, but an unlisted REIT has no active market and may appear artificially stable. By the time an unlisted REIT is revalued, it’s too late.

Although unlisted REITs may have a place as a small percentage of an experienced investor’s overall portfolio, targeting inexperienced or elderly investors who are looking for a low-risk opportunity is inappropriate and may constitute investment misconduct.

If you have lost money or had your investments frozen in the Apple REITs recommended by David Lerner Associates, contact an experienced FINRA lawyer today at (800) 738-1960 or by filling out our online form at the top of this page.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram