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

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