You state that you got a 30% return from a high-cost non-traded REIT (i.e Cole), vs. the roughly 300% returns seen over the same period with traded REITs. Let’s be clear: you are talking 30% with Cole vs. 300% with traded REITs. If true, then it is still my contention that no investor would choose to pay more to earn lower returns with higher risk (i.e. 30% w/Cole) as opposed to paying less for higher returns with lower risk (i.e. 300% w/traded REITs), unless they are completely uninformed and don’t know any better.

Most sponsors and brokers of non-traded REITS depend upon this kind of confusion and lack of rigor to keep raising money, earning their 15% loads, and to help produce unmitigated disasters like Behringer Harvard REIT I, KBS REIT I, Cornerstone, and TNP Strategic Retail Trust. In fact, on a collective basis, FINRA Notice 11-44 caused Non-Traded REIT sponsors to publicly announce losses of more than $8 billion. Even J.P. Morgan’s infamous “London Whale”, whose bosses now face criminal charges in the U.S., would be impressed. Investors can do whatever they want, but if they were made fully aware of the risk/reward profile of non-traded REITs, then it is my belief that they would make different, more rational choices.

>I have never lost a dime in the 6 REIT’s that I have invested in the past (W.P.Carey, Cole, Grubb).

I actually don’t believe this. I’m not sure if there are a total of 6 REIT’s that have ever made investors whole. Care to elaborate and provide some numbers and dates invested?

REIT’s are a compensation scheme for management, not an investment strategy.

I can see by the lack of updates in the last 2 years that you realized you were wrong and decided to get a life.

Nothing could be further from the truth.

I’m glad you’re happy with your 30% return, but I am quite confident that on a risk-adjusted basis, Chris Cole is MUCH happier with his $127 million internalization fee.

You’re a joke!

“The roots of education are bitter, but the fruit is sweet” — Aristotle

I can see by the lack of updates in the last 2 years that you realized you were wrong and decided to get a life.

BTW, I also bought Griffin-American Healthcare REIT II… Care to estimate how much I’ll loose?

You’re a joke!

From 1992 through 2004 everyone loved REIT’s and this type of website would have been a joke.

All things being equal, how do 15% loads, lack of transparency and countless conflicts of interest help investment returns?

“Only when the tide goes out do you discover who’s been swimming naked.” — Warren Buffett

Lee,
I have never lost a dime in the 6 REIT’s that I have invested in the past (W.P.Carey, Cole, Grubb). This is real estate and if you buy at the top, you’re probably going to lose. I didn’t touch anything after 2004 until recently. During the 90’s I made very good income from Non-traded REIT’s.

It’s only now that this site will get any attention because of the market collapse. From 1992 through 2004 everyone loved REIT’s and this type of website would have been a joke. Anyone who bought REIT’s, RE Limmited Partnerships or even a single family home in from 2004 through 2008 was a complete fool. Anyone who bought a house during this time probably lost more than the average REIT. It’s just common sense, IMHO.