April 1, 2021 Comments Off on Resource REIT, Inc. Securities Investigation Blog, Current Investigations

Resource REIT, Inc. Securities Investigation

Resource REIT, Inc. Securities Investigation, featured by top securities fraud attorneys, The White law Group

Resource REIT Inc. (fka Resource Real Estate Opportunity REIT II) Merger Update

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended Resource REIT Inc. (formerly known as Resource Real Estate Opportunity REIT II) to investors.

Resource REIT, Inc., a publicly registered non-traded REIT, buys undervalued apartments located in “strong suburban markets to add value and generate income,” according to its website.

The company, formerly known as Resource Real Estate Opportunity REIT II, Inc., reportedly completed its mergers with Resource Real Estate Opportunity REIT, Inc. and with Resource Apartment REIT III, Inc. on January 29, 2021.

How Does a Merger Affect Shareholders?

Companies often merge as part of a strategic effort to boost shareholder value, often by creating new business lines and/or gaining  greater market share. However, the economic environment at the time of the merger,  size of the companies and management of the merger process all play a part in future returns for shareholders. 

Shareholders may experience a significant loss of voting power, and while the spike in trading volume tends to inflate share prices, if economic conditions are not favorable at the time of the merger, shareholders may see significant losses

Illiquid Investments

The trouble with non-traded REITs, like Resource REIT, Inc. is that they are complex and inherently risky products.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of Resource REIT Inc. are currently listed to sell for just $6.78 per share. The original offering price of the REIT was $10.00 per share. 

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Filing a Complaint against your Brokerage Firm

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Resource Real Estate Opportunity REIT II,  please contact 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

 

 

 

Comments are closed.