Recovery of Investment Losses in Steadfast Apartment REIT
Are you concerned about investment losses in Steadfast Apartment REIT? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration against the brokerage firm that sold you the investment.
Steadfast Apartment REIT is a non-traded Real Estate Investment Trust (REIT) that closed its initial public offering on March 24, 2016.
According to their website, Steadfast Apartment REIT’s objectives are to pay attractive and stable distributions to stockholders and realize capital appreciation in the value of the investment over the long term.
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Steadfast Apartment REIT. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale.
In February 2017, shares of Steadfast Apartment REIT were sold on Central Trade and Transfer, a secondary market site, for just $12.40 per unit. Considering the original offering price was $15.00 per unit, this is a loss for investors.
The Risks of Non-traded REITs
Non-traded 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.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. 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. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
In addition to the high risks, non-traded REITs, like Steadfast Apartment REIT often lack liquidity. 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.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you suffered losses investing in Steadfast Apartment REIT 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.