May 21, 2018 Comments (0) Current Investigations

Summit Healthcare REIT – Third Party Tender Offer

Summit Healthcare REIT

Recovery of Investment Losses in Summit Healthcare REIT

Have you suffered losses investing in Summit Healthcare REIT at the recommendation of your financial advisor? The White Law Group may be able to help you recover your losses through FINRA Arbitration.

Summit Healthcare REIT, Inc., a Maryland corporation, invests in and owns real estate and is considered a real estate investment trust.

According to a recent offer, Mackenzie Realty Capital is purchasing shares of Summit Healthcare REIT for just $1.56/share.

Summit Healthcare REIT has not paid distributions since 2011 and the stock repurchase program was suspended as of December 31, 2010. The company has not said if, or when, distributions or redemptions will resume.

Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale.

Non-traded REITs are risky.

The trouble with non-traded REITs is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.

Unfortunately, the high sales commissions associated with non-traded REITs often provides some broker dealers with enough incentive to overlook suitability requirements. Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%.

Brokers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.
If a brokerage firm makes unsuitable investment recommendations or fails to disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

If you are concerned about your investment in Summit Healthcare REIT, The White Law Group may be able to help you. For a free consultation with a securities attorney, please contact the offices at (888) 637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.