Securities Arbitration Lawyers BlogAre (or Were) Unsuitable Non-Traded REITs in Your Portfolio?
Learn the details about this vehicle, and why it may be an unsuitable investment
REITs, or real estate investment trusts, are companies that own real estate-related assets. These may include office parks, hotels, homes, or even related debt like mortgages. REITs are an attractive investment because they can often provide a steady stream of income to investors, as the IRS mandates that they distribute at least 90% of their taxable income to shareholders.
Most REITs are publicly registered and publicly traded on major stock exchanges – however, some are not publically traded. These non-exchange traded REITs are usually managed by a private investment manager, and they can be much riskier than their tradable cousins.