re: REIT's

That's fine but anything specific you'd like to refute that he's claiming?

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At least publicly traded indexed or actively managed ETF's/funds are liquid and allow someone to cash out at whatever the current market price, not get bent over by a bottom feeder.

I don't have a horse in this game, but I know enough to determine people don't know or understand what they are buying.

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Enough. Non traded Reits are a tool. We get it, you don't like them. They have a place and time. You keep spouting how terrible they are and that you have the answer with VNQ. That is complete bullshite. Non traded Reits are a diversification tool. They are a non correlated asset. You use them along with an equity potfolio. They pay you a good dividend and generally go full cycle at a premium. Here is an exercise for you. Go to yahoo finance and punch in VNQ. Now click on interactive charts for 5 years. Next click the compare button and select the S&P. Now hit the draw button. You see those lines they are almost correlated 1 to 1. There is no diversification there. BTW, I also own some publically traded REITS that allows daily liquidity and pays a nice dividend. Go buy CCPT III and earn 6.5% in year 1. Now redeem it and they keep 4%. You made 2.5% in one year. Find me a 1 year CD that pays that.

If you are going to make investment decisons based on some guys opinion on the internet, you deserve what you get. Ok, off my soap box I go.

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I think they'd keep 5% after one year.

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You are correct. I aplogigize.

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I think they'd keep 5% after one year.

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You are correct. I aplogigize.

after year 2, goes to 2.5% they keep

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Non traded Reits are a diversification tool. They are a non correlated asset. You use them along with an equity potfolio.

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Uncorrelated with what? You think that if Cole's holdings and declining cash flow was available and the value of assets marked to market 2007-2009 it would not have dropped as significantly as any other commercial REIT. Wow.

People said the same thing about collateralized commodity funds and that didn't work well, either.

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Non traded Reits are a diversification tool.

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How has the CIII you are selling helped equity investors the past three years other than helping them lose wealth???

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I am not aware of one if there is. I like it cause it owns single stores. Not strip malls or office buildings with low occupancy rates. It owns Walgreens, academy, wal mart and so on. As long as the company is till in business they get paid a rent check. Even if the building is empty. So if they close a certain walgreens store, they still receive the rent check form walgreens corporate office.

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You got the speech from a sales guy too huh! admit it.

He is a financial "advisor". Let me grind it further, even FINRA is interested:

LINK

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Investors are filing broker-arbitration claims with Finra after being surprised by share devaluations, dividend cuts and the suspension of buyback programs, said Andrew Stoltmann, a Chicago attorney who has taken on 10 cases in the past six months, including one by the Wendorfs.

“We are seeing a huge concentration of elderly clients’ portfolios jammed into nontraded REITs,” said Stoltmann, who worked as a Merrill Lynch & Co. financial adviser before going to law school. “There are fraudulent representations made that these things are low risk. Some of the brokers are selling these things as an alternative to a certificate of deposit.”

While disclosing risk is necessary, it’s difficult to discuss complicated fee structures with investors “without completely frustrating and confusing them,” said John Rooney, who runs the West Coast operations of Commonwealth Financial Network, an independent broker-dealer in Waltham, Massachusetts.

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“Do I think a retail investor has the enthusiasm and capacity to understand them?” he said. “No. That’s why they hire a financial adviser.”

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Like the advisors understand them, too, other than the commissions...

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You got the speech from a sales guy too huh! admit it

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Is it true?

What are you talking about? When did I question your truth? I don't really care if you people like them or not. Alternative investments make up about 20-30% of my clients portfolios, of which non traded REITS are used along with other things. My clients like them and ask for more. Yes, it pay's 7% but so what. Front end loaded funds pay 5.75%. Fees and lack of performance is why I don't use funds very often. Ask anyone in the business whether they would rather have a transaction based practice or a fee based practice and I bet you most will say fee based. I am sure there are some guys out there that do it for the commission just like with annuities, but sometimes it just makes sense.

Also, Cole is working on creating a REIT that is built for a managed account. It will not pay me anything up front and have 100% liquidity. The dividend will be smaller though.