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Mon Feb 24, 2014, 11:16 AM

Non-traded REITs Destroyed Billions of Investor Funds

From Ring of Fire:

Non-traded REITs are dangerous investments for most. The lack of transparency surrounding the true value of the product and the often high fees and costs associated with the investment compound to solidify this position. Economists and commentators are continuing to investigate and speak out about these dangers.

“Non-traded REITs are a favorite of some advisors because they can charge such exorbitant fees,” said Peter Mougey, a shareholder with the Levin, Papantonio law firm and director of the firm’s Business and Securities Litigation Departments. “Investors should avoid these products; the hidden fees and high costs make them a poor choice.”

A report published this Tuesday authored by Tim Husson, PhD, FRM, Craig McCann, PhD, CFA, and Carmen Taveras PhD, decided to take a closer look at “how investors fared in five non-traded REITs” that came from The Inland Real Estate Group of Companies. The researchers found that Inland had raised $18.1 billion from investors for the REITs and that their investments were now worth $13.7 billion.

You can read the full article here at Ring of Fire.

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