Inland Residential Properties Trust – Securities Investigation
Are you concerned about your investment in Inland Residential Properties Trust? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Inland Residential Properties Trust Inc. is a non-traded Real Estate Investment Trust sponsored by affiliates of Oak Brook, Illinois-based The Inland Group, according to its website. The Trust was founded in December 2013 and started selling common stock on February 18, 2015.
According to SEC filings on August 7, 2018, the REIT has incurred net losses on a U.S. GAAP basis for the six months ended June 30, 2018 and 2017 of $1.3 million and $1.1 million, respectively.
The company says these losses can be attributed, in part, to property operating, interest, general and administrative expenses, and non-cash charges for depreciation and amortization.
“We may incur net losses in the future, which could have a material adverse impact on our financial condition, operations, cash flow, and our ability to service our indebtedness and pay distributions to our stockholders.”
Additionally, the company discloses that, “Our fixed operating expenses constitute a greater percentage of our gross income due to the size of our portfolio and, as a result, may make it more difficult to generate sufficient income to provide for a full return of invested capital to stockholders.”
Is a Non-Traded REIT a suitable investment for you?
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended high-risk non-traded REITs like Inland Residential Properties Trust to investors.
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.
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. Many investors are unaware of the downside of purchasing non-traded REITs, especially the lack of liquidity.
Investors looking to sell non-traded REITs often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.
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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
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 Inland Residential Properties Trust or another Inland offering and would like a free consultation with a securities attorney, please call The White Law Group 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.