If you lost money in a real estate investment trust or similar real estate investment scam sold to you by a financial advisor, you may have grounds to file a lawsuit in California. Contact the real estate investment loss lawyers at Meyer Wilson for a free consultation about your potential California real estate investment scam case today.
Why Clients Hire Us
We have an invaluable store of resources to build your claim, including a network of expert witnesses and mediators across the country. We have more than two decades of experience successfully helping clients recover compensation for the losses they suffered in real estate investment scams.
We take California real estate investment scam cases on a contingency fee basis, not charging our clients anything if we do not win.
What Is a Real Estate Investment Trust?
Real estate investment trusts (REITs) continue to be a popular investment, but many investors don’t fully understand how they work and the potential risks involved. REITs are real estate investments through a corporate entity, allowing investors to avoid corporate taxes. However, 90% of the income must be distributed.
Navigating the Risks of Non-Traded REITs
- Exchange-Traded REITs: Traded on public exchanges, with share prices fluctuating based on market conditions.
- Non-Traded REITs: Not traded on public exchanges, with brokers initially reporting a fixed purchase price (typically $10 per share) for an extended period, often 4-5 years, before establishing a market value. During this extended period, investors may struggle to determine the real value of the non-traded REIT. Additionally, the amount actually invested could be up to 15% less than the initial investment due to very large commissions and upfront fees, although brokerage statements may still show the full value. Non-Traded REITs are illiquid and cannot be sold easily
As seasoned investment loss recovery and securities fraud lawyers, we’ve witnessed how financial advisors can be swayed by the lucrative commissions offered by non-traded REITs.
However, this often leads to situations where the associated risks are inadequately disclosed to investors, leaving them unaware of the potential challenges they may face when attempting to sell their investments.
Investors are frequently misled into believing that non-traded REITs are a means to earn interest, when in reality, they are exceptionally risky and typically underperform compared to traded REITs. Non-Traded REITS have:
- Lack of liquidity and difficulty in selling investments
- High upfront fees and commissions
- Potential conflicts of interest for financial advisors
Common Real Estate Claims in California
If you have fallen victim to real estate investment losses in California, you may have the right to seek legal remedy. Here are several ways real estate investment scams can take place:
- Common Law Fraud refers to an intentional misrepresentation of material facts with the intent to deceive, resulting in monetary loss.
- Misrepresentation of Material Facts is a false statement made by a seller or other person involved in a real estate investment scam transaction that influences the buyer’s decision to enter into the transaction.
- Negligence or Breach of Fiduciary Duty is the failure of a person or entity to fulfill the duties of a fiduciary relationship, resulting in harm to another person.
- Breach of Contract is a failure to fulfill the terms of a contract, which can include a real estate investment scam recommendation.
- Fraudulent Inducement is the use of false information or promises to induce someone to enter into a real estate investment scam contract.
What to Do If You Lost Money in a Real Estate Investment Scam
If you suspect you have been the victim of any of these forms of real estate investment scams, it is crucial to seek legal representation as soon as possible. The securities fraud attorneys at Meyer Wilson have the resources, experience, and dedication to help you recover compensation for your losses. Contact us today for a free consultation.
At Meyer Wilson, we have attorneys available who have years of experience handling civil cases involving serious real estate investment scams. No matter what the circumstances are of your specific case, please contact us to request a free legal consultation.
One of our lawyers can walk you through the steps to seek justice and compensation in California.
