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Written by 2:43 pm Blog, Investment Loss Recovery

RREEF Property Trust (RPT) Securities Investigation

RREEF Property Trust (RPT) Securities Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Concerned about your investment in RREEF Property Trust? 

Are you concerned about your investment in RREEF Property Trust? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

RREEF Property Trust, Inc. is a publicly registered, daily NAV REIT1 advised by DWS Group. 

According to its prospectus, “RREEF Property Trust is a speculative security and, as such, involves a high degree of risk. There is no guarantee that any real estate strategy, including ours, will be successful. There is no public market for our shares of common stock. Our shares should be considered as having only limited liquidity and at times may be illiquid.” 

The White Law Group is currently investigating potential claims against brokerage firms who may have unsuitably recommended non-traded REITs to investors. 

These claims result when broker-dealers fail to perform adequate due diligence on the investments before offering them for sale to their clients. Also, the brokerage firms often fail to determine if the investments were appropriate given their clients’ age, investment, experience, net worth, and risk tolerance. 

Daily NAV REIT- RREEF Property Trust 

A daily NAV (Net Asset Value) REIT (Real Estate Investment Trust) refers to a type of REIT where the Net Asset Value is calculated daily. 

A REIT is a company that owns, operates, or finances income-generating real estate across a range of property sectors. They allow individuals to invest in real estate without having to buy or manage properties directly. 

Net Asset Value (NAV) is the value of a fund’s assets minus its liabilities. For a REIT, this typically includes the value of the properties it owns, minus any debts or other obligations. By calculating the NAV daily, investors may get a more frequent and accurate picture of the underlying value of the REIT’s assets. 

While investing in a daily NAV REIT may provide investors with more transparency, they may also have higher administrative costs due to the more frequent valuation process. 

Risks of Investing in Non-Traded REITs 

Lack of liquidity: Non-traded REITs typically have limited liquidity compared to publicly traded REITs. Investors may face challenges in selling their shares, as there is no established public market for them. Redemption programs, if available, often have restrictions and may only allow redemptions at certain times and at prices below the initial investment. 

Valuation uncertainty: Since non-traded REITs do not trade on public exchanges, their value may be difficult to determine accurately. Share prices are often set by the REIT’s management and may not reflect the true underlying value of the real estate assets. Investors may face uncertainty about the value of their investment until a liquidity event occurs. 

High fees and commissions: Non-traded REITs typically have high upfront fees and ongoing expenses, including sales commissions, management fees, and other operational costs. These fees can significantly reduce investors’ returns and may not be fully transparent at the time of investment. 

Limited transparency: Non-traded REITs are not subject to the same disclosure requirements as publicly traded REITs. Investors may have limited access to information about the REIT’s financial performance, portfolio composition, and management practices, making it challenging to assess the investment’s risks and potential returns accurately. 

Broker Due Diligence 

Despite the risks of investing in alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation. Brokers are required to perform due diligence on each investment before recommending it to investors.

If a brokerage firm makes unsuitable investment recommendations or fails to adequately 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. 

Free Consultation with a Securities Attorney 

If you are concerned about your investment losses in RREEF Property Trust, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation. 

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 Seattle, Washington. 

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

 

Tags: , , , , , , , , , Last modified: February 15, 2024