Thursday, March 24, 2016
Look Before You Invest - Non-Traded REITs
Early redemption of shares is often very limited, and fees associated with the sale of these products can be high and erode total return.
The periodic distributions that help make these products so appealing can, in some cases, be heavily subsidized by borrowed funds and include a return of investor principal. This is in contrast to the dividends investors receive from large corporations that trade on national exchanges, which are typically derived solely from earnings.
Read more: FINRA REIT Alert