April 27, 2018 Comments (0) Blog, Current Investigations

Summit Healthcare REIT – Investigating Potential Claims

Summit Healthcare
(Last Updated On: April 27, 2018)

Secondary Market Listing – $1.60/share – Summit Healthcare REIT

Did you lose money investing in Summit Healthcare REIT at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.

According to Bloomberg, Summit Healthcare REIT, Inc. is a Maryland corporation, formed in 2004, that invests in and owns real estate. It continues to qualify as a real estate investment trust for federal tax purposes.

Are Non-Traded REITs a suitable investment for you?

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Brokers have an opportunity to earn high commissions—sometimes as high as 15% — on non-traded REITs. This may provide some brokers with enough incentive to make unsuitable investment recommendations.

Non-traded REITs, like Summit Healthcare REIT often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Unfortunately for investors, Central Trade & Transfer, a secondary market for private placements, is listing shares of Summit Healthcare REIT for just $1.60 per share. According to SEC filings, Summit’s most recent estimated net asset value per share was $2.53 as of December 31, 2016.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Summit Healthcare REIT.

Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

If you suffered losses investing in Summit Healthcare REIT The White Law Group may be able to help you. For a free consultation with a securities attorney, please call our law offices at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

 

 

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