Non-Traded REITs: Not the Next Madoff
by Diana Britton, in Yield of Dreams, Wealth Management.com July 20, 2012 Broker/dealers and advisors who sold non-traded REITs to their clients after the market meltdown have been running scared of the potential impacts of those investments, given the negative headlines focused on non-traded REITs. But some suggest that this is not the next Madoff. In the wake of more stringent net asset value reporting requirements, many prominent non-traded REITs saw their valuations plummet, including Cornerstone Core Properties REIT Inc., Inland Western REIT, and Behringer Harvard Opportunity REIT I. But unlike Madoff, these were not fraudulent investments. Their losses were simply a matter of being at the wrong place at the wrong time. Such REITs raised capital and bought assets in the height of the market, as did many homeowners and day traders, said...