Have you suffered losses investing in Moody National REIT I? If so, The White Law Group may be able to help.

According to their website, Moody National Companies, established in 1996, is a full-service commercial real estate firm. Since the beginning, “Moody National has remained focused on identifying and developing investment opportunities that offer long-term asset preservation as well as stable and predictable cash flows.”

On October 19, 2016, the board of directors of Moody National REIT I, Inc. announced the suspension of the common stock distribution reinvestment plan.  The suspension will be effective beginning with distributions made in November 2016.

A real estate investment trust (REIT) is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers and hotels. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

REITs are complex and high risk investments that are really only suitable for sophisticated investors. It is the duty of the brokerage firm to perform due diligence on any investment and to ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

Financial advisors have a fiduciary duty to put their client’s needs ahead of their own.  If a stockbroker recommends an investment that is unsuitable for the client or fails to perform adequate due diligence on an investment, the advisor and his/her firm can be held liable for the resulting losses.

The White Law Group continues to investigate the liability that brokerage firms have for unsuitably recommending REITs such as Moody National.

For more information on The White Law Group’s investigation see Moody National REIT secondary market bid and Moody National REIT I, Inc. and Moody National REIT II, Inc. to Merge.

For more information on REITS: Brokerage Firms Cut Ties with Nontraded REITs OR FINRA Awards suggest REITs remain problem in securities industry.

 If you believe that you are the victim of your advisor recommending a REIT to you inappropriately, please call the securities attorneys of The White Law Group at (888)637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.  For more information on The White Law Group visit http://whitesecuritieslaw.com.