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REITs: When “Liquid” Real Estate Investments Aren’t So Liquid After All

REITs: When “Liquid” Real Estate Investments Aren’t So Liquid After All

Real Estate Investment Trusts (REITs) are often marketed as a way to invest in real estate without the hassles of being a landlord. They’re supposed to offer the benefits of real estate investing with the liquidity of stocks. But not all REITs are created equal, and some can trap your money for years.

Let me explain the different types of REITs and why liquidity can be a bigger problem than you think.

What Are REITs?

REITs are companies that own, operate, or finance income-producing real estate. They’re required to pay out at least 90% of their taxable income as dividends, making them popular with income-seeking investors.

There are several types of REITs, and the differences matter a lot for liquidity.

Publicly Traded REITs

These trade on stock exchanges just like regular stocks. You can buy and sell them anytime the market is open, and pricing is transparent. These are truly liquid investments.

The downside? Their prices can be volatile and don’t always reflect the underlying real estate values.

Non-Traded REITs (The Problem Children)

Non-traded REITs don’t trade on public exchanges. They’re sold through brokers and financial advisors, often with high commissions and fees.

The problems with non-traded REITs:
No liquidity – You usually can’t sell them for years
High fees – Upfront fees can be 10-15% of your investment
Valuation issues – It’s hard to know what they’re really worth
Redemption programs – Limited and often suspended during market stress

The Liquidity Trap

I’ve seen too many investors who thought they were buying “liquid” real estate investments, only to discover they couldn’t access their money when they needed it.

Case study: A client invested $100,000 in a non-traded REIT that was supposed to provide “steady income and liquidity.” When he needed the money for medical expenses two years later, he discovered:
– The REIT had suspended its redemption program
– There was no secondary market for the shares
– His money was essentially trapped

Who Gets Sold Non-Traded REITs?

Unfortunately, non-traded REITs are often sold to exactly the wrong people:
Retirees who might need access to their money
Conservative investors who don’t understand the liquidity risks
Income-seekers who are attracted by high dividend yields

These investors often don’t realize they’re giving up liquidity for potentially higher returns.

The Fee Problem

Non-traded REITs often have enormous fees:
Selling commissions – 7-10% upfront
Due diligence fees – 1-3%
Organization and offering expenses – 1-15%
Management fees – 1-2% annually
Performance fees – 10-20% of profits

By the time you pay all these fees, you need significant appreciation just to break even.

Red Flags to Watch For

High commissions – If your advisor is earning a big commission, be suspicious.

Emphasis on yield – High current yields often come at the expense of liquidity and principal protection.

Downplaying liquidity risks – If the risks aren’t clearly explained, walk away.

Pressure to invest quickly – Legitimate investments don’t require immediate decisions.

Unsuitable for your situation – REITs that tie up your money for years aren’t appropriate for most retirees.

Better Alternatives

If you want real estate exposure, consider:
Publicly traded REITs – True liquidity with transparent pricing
Real estate mutual funds – Professional management with daily liquidity
Real estate ETFs – Low fees and instant liquidity
Direct real estate ownership – If you want to be a landlord

Suitability Issues

Brokers have a duty to recommend suitable investments. Non-traded REITs are often unsuitable for:
– Investors who might need liquidity
– Conservative investors who don’t understand the risks
– People with limited investment experience
– Anyone investing a large percentage of their net worth

What to Do If You’re Stuck

If you’re trapped in an illiquid REIT:
Review the offering documents – Understand your options
Monitor redemption programs – They sometimes reopen
Consider secondary markets – Some firms buy illiquid REITs at discounts
Evaluate legal options – If the REIT was unsuitable, you might have recourse

Legal Options

If you were sold an unsuitable non-traded REIT, you might be able to recover losses through:
– FINRA arbitration for suitability violations
– Misrepresentation claims
– Failure to disclose risks
– Churning if you were moved between different REITs

The Bottom Line

REITs can be good investments, but you need to understand what you’re buying. Publicly traded REITs offer true liquidity, while non-traded REITs can trap your money for years.

Don’t let high yields or promises of “steady income” blind you to liquidity risks. And don’t let brokers sell you illiquid investments that aren’t appropriate for your situation.

If you’ve been harmed by unsuitable REIT recommendations, an experienced securities attorney like Robert Pearce at Investors Rights can help you understand your options and potentially recover your losses.

Remember: liquidity is valuable. Don’t give it up unless you’re getting fairly compensated for the risk.

Speeding Ticket Attorneys

Speeding Ticket Attorneys

I had my car on cruise control. I saw that it said 75. I always go that speed in this particular area of Texas, otherwise, you’ll get run over. So the officer wouldn’t hear of it. He said I was doing 83. There’s no way. My uncle suggests that I go to my car dealership and verify the cruise control is working fine. Once that’s verified get it in a letter form and send it along with a written declaration to the court.
I called the traffic clerk’s office. She didn’t seem very helpful at all. She said, “well they may not even look at your letter, but you can try.”speeding ticket attorneys
I still want to plead that I’m innocent of going 83. But I’m guilty of going 75 for sure. I’ll gladly pay that fine. The court date is December 22. I will be long gone from here by then. I’m moving in December back East with my wife. So it seems written declaration is my only option. More about Speeding Ticket Attorneys San Antonio

Ticket cost? 60.00 The state is cracking down hard and ticket prices range 60.00 on average and up. Gone are the days of 0.00 tickets here. I would also like to appear in court because the judge usually lowers the fine. This is horrible and I don’t know what to do! I requested an earlier court date and they don’t have one. I’m very scared!
I had the speedometer set at 75 because the speed limit was 75 for a while. We were on a long trip back. It had just dropped. I’m not denying I broke the law here people. All I’m saying is I was going 75 not 83.

What if I Lose My Personal Injury Lawsuit?

What if I Lose My Personal Injury Lawsuit?

If you’ve never been involved in the legal process before, the idea of losing a personal injury case and then appealing the judgment can seem daunting. Is it even possible to file an appeal in your situation? If so, how? How do appeals work? Will it mean you will have to go through a trial again?

These and many other questions are very common when people lose a personal injury lawsuit. Though you should always speak to your attorney about the possibility of appeal, here is some basic information you can use to help you get a better understanding of how appeals work.accident attorneys - appealing a judgement

Deciding to File a Personal Injury Appeal

Let’s start with an example. Let’s say that you suffered an injury after slipping and falling on private property. You then sue the property owner because you suffered an injury that required you to pay for extensive medical care, treatment, and rehabilitation costs. You filed your case, engaged in settlement negotiations, and when those negotiations didn’t work, you went to trial. After presenting your case the jury ruled against you. Now what?

Now, you have to decide if you want to file an appeal. An appeal, unlike a trial, doesn’t involve either you or the defendant presenting evidence. Instead, when you file an appeal your lawyer will file what is known as a brief. In this brief, the attorney will argue certain legal points. Depending on the kind of case you have, your attorney might, for example, argue that the trial court judge made a mistake when he ruled that certain evidence was or was not permissible.

The key distinction here is to know that if you file an appeal you are essentially making an argument with a different court that the trial court made a mistake.

Appeals Lawyers

Depending on the circumstances of your case and the legal questions involved, you might not use the same attorney you had when you went to trial. Some attorneys specialize in personal injury trials and settlement negotiations but don’t handle appeals.

On the other hand, some attorneys specialize in researching, writing, and arguing appeals before appellate courts. Whether you should use your current attorney or find another lawyer to help with the appeal is something you’ll have to decide.

Appeal Outcomes

Because an appeal is not a trial, you might be wondering what an appellate court can do for you. There are three basic outcomes that can usually result from the case of an appeal.

Affirm. When an appeals court hears a case and decides that the trial court did not make a mistake, it will affirm the trial court’s decision. This means that the appeals court will not do anything to change or modify what the trial court decided.
Remand. In some situations, the appeals court will determine that the trial court used the wrong legal standard when making a decision. When this happens, the appeals court can remand the case back to the trial court, essentially ordering a new trial or a new part of a trial.
Reverse. If the appeals court agrees with you and says the trial court made a mistake, it can also reverse or overturn the trial court’s decision and rule in your favor.

Of course, the outcome that you might be able to achieve with your personal injury appeal is not something you will be able to determine on your own. You should only decide to file an appeal after consulting with your attorney, weighing your options, and thinking about what you feel is best for you.

Accidents With Out-of-State Vehicles – Texas Car Accident Attorneys

Accidents With Out-of-State Vehicles

Personal Injury Lawyers » Accidents With Out-of-State Vehicles

Issues and Concerns You May Have About an Injury Accident With a Car From Another State

Typically, when you are involved in a car or truck accident the other motorist will also be from Texas. While no accident is easy or stress-free in resolving, it is much easier when both motorists are from the same state. It can be much more difficult to resolve a car accident claim when the parties involved are from different states. This creates numerous problems; you should always seek an attorney to assist you when this conflict arises. Out of state motorists will likely be working with an attorney to represent them, their state may have different insurance requirements, and their state might have different laws which could greatly affect the outcome of the dispute.car accident lawyers

Out of State Insurance Companies

Most insurance companies can be incredibly difficult to deal with. Their objective is to spend as little money as possible and frequently they are indifferent to your personal problems resulting from an auto accident. They hear sad stories every day and are trained to react without emotion to your misfortune. No matter how much you plead with them and explain in detail why you need them to pay for your medical bills or car repairs, they will deny as many claims as possible and often attempt to give you the smallest amount of compensation. Combine these issues without of state insurance companies and negotiating a settlement with them can seem almost impossible. Many types of documents and various forms of evidence will need to be sent to these out of state insurance companies which can prove difficult when met with certain deadlines. Additionally, if the insurance company is located in a different time zone simply talking to them on the phone can prove incredibly challenging. You need an attorney who can assist you with this complicated and tiring process. Our job is to help you so that your regular life is disrupted as little as possible and to make sure that you receive the compensation necessary for your recovery. We are experienced in negotiating claims with out of state insurance companies and understand how to make this process work in your favor.

Out of State Attorneys and Conflicting Laws

Many out of state drivers cause car accidents because they are not familiar with our traffic laws and are unfamiliar with our roadways. Similarly, other states have different court procedures and common practices that could harm you if you become subject to them. For every accident, there are numerous potential avenues to file a claim. Most often the claim is filed and settled in the district of which the accident occurred, but occasionally, people will attempt to move the venue to their home state. This could create numerous problems for you and limit your potential recovery. Their attorney will be fighting relentlessly to have the claim filed in their state. This makes the negotiating process easier on their client and could also result in them being favored in court. Many other states have very different laws, like Louisiana which follows the Napoleonic Code, and these can sometimes be incredibly detrimental to your claim and subsequent recovery. You need an attorney who will help you keep the case here in Texas. Our attorneys have a great deal of knowledge about different venue locations and can help you determine which venue would be most beneficial to your case. Once we determine which venue is best suited for your argument we can help make sure that this is the court that the claim is judged.car accident attorneys

Do you have a legal issue or question? Call us now.

Out of State Claims Can Be Costly

By helping to make sure that your claim remains in Texas, we are helping to save you money. If the claim is filed and settled out of state you will be forced to send all relevant documents to that state and in many cases, you will be forced to travel there as well. You should not be punished simply because another person chose to travel to Texas and ultimately involved you in a car accident. They chose to travel to this state and they should be required to adjudicate any claims against them in this state. Costs for adjudication can skyrocket when you are forced to travel to a different state. For example, if the person who hit your car is from New York and they seek to have the case resolved in New York you would have to pay for all travel expenses when you go to New York to resolve the claim. This would include airfare, hotel accommodations, and local travel expenses such as rental cars or taxi cabs. You could also lose money when you are forced to miss work for several days due to traveling. If you have been involved in a car accident with an out of state motorist, call our law office any time, day or night, for a free consultation. more information here @ https://caraccidentattorneysa.com/car-accident-lawyers-san-antonio/