Written by 11:32 am Current Investigations

Recovery of CNL REIT Losses

Hines REIT

Concerned about losses in a CNL Properties REIT?

Have you suffered investment losses in a CNL Properties REIT?  If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments, including CNL REIT investments. Some of the CNL Properties REIT that the firm is investigating include, but are not limited to:

CNL Hospitality Properties, Inc.,
CNL Retirement Properties, Inc.,
CNL Properties Fund,
CNL Lifestyle Properties
CNL Healthcare Properties
CNL Healthcare Properties II
CNL Growth Properties

FINRA recently announced that it is paying close attention to the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.

Risks of REITs

REITs typically pay a high commission – often as much as 15% (which often explains the stockbroker’s motivation in recommending the REIT investment to the investor).

Due to the relatively high interest or dividend offered by non-traded REITs like CNL REITs, retired investors are often attracted to these products.  Unfortunately, in addition to be risky investments, non-traded REITs are also illiquid (limiting investors ability to access their own money for unforeseen expenses).

Another problem with non-traded REITs is that broker-dealers are not required to frequently update the current price of the investment.  This often leads investors to believe that there REIT investment is doing well even though the widespread real estate market collapse would indicate otherwise.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky CNL Properties REIT investment, please contact The White Law Group at 888-637-5510.

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 Vero Beach, Florida.

For more information on The White Law Group, visit http://whitesecuritieslaw.com.

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