Dear John Chapman,

Dear John Chapman,

I invested $120k in non-traded REITs

as a retirement investment strategy and now can't liquidate. My broker has moved on and I am stuck with redemption that only permits 1.25% redemption per quarter. Based on this calculation, it will take me 20 years to get my funds out. I think I have a case.

-Concerned in Columbus

Dear Concerned,

Non-traded REITs are alternative investments that are only suitable for a small section of the investing public. They are riskier than normal investments and come with significant challenges. Non-traded REITs are illiquid, high commission and often dictate when investors can redeem their shares. When recommending a non-traded REIT, it’s up to the broker and brokerage firm to educate their investors on the risks associated with this type of investment and ensure they are a suitable choice for their clients. If your broker failed to communicate the risks, didn’t do his or her due diligence or pressured you into making this investment, you could have a case. Please call us to speak in further detail about your situation.

Sincerely,
John Chapman

John S. Chapman

If you have a question for John Chapman, please email it to
dearjohn@johnschapman.com

Dear John Chapman,

I was a so-called investor in a stock that was $1.00 per share with a minimum investment of $10,000.

I was in a group of local people that all put in money to reach that amount. I only invested $500 and I received a...

Read More
Dear John Chapman,

My financial advisor sold me bonds that are very poorly rated and have high fees.

She did not tell me about the fees or that there is an early withdrawal fee of 1%. What options do I...

Read More