Beware nontraded real estate investment trusts. That advice was issued early this month by the Financial Industry Regulatory Authority, the nongovernmental regulator of securities firms.
Florida-based White Law Group is investigating possible securities claims against brother Ray Lucia. The subject: the appropriateness of a nontraded real estate investment trust recommendation. The sale occurred back while Ray was still in the business. White says that the problem is that such investments “are often illiquid, and investors cannot readily access their money for unforeseen expenses (like medical expenses).”