UNLOCK THE POWER OF THE VAULT

Advisors are Failing Their Best Investors When it Comes to Alternative Investments

September 4, 2020

Advisors are Failing Their Best Investors When it Comes to Alternative Investments

August 20, 2020 | Ryan Gunn | WealthForge

High net worth investors come with different investing preferences and a broader set of investment options than the average client. For example, high net worth investors are accredited, and therefore have access to alternative investments such as private placements, 1031 exchange DSTs, Qualified Opportunity Zone Funds, and more. Many advisory firms are ill-equipped to handle significant alternative investment business while providing the modern investment experience that clients have come to expect in their financial lives.

The vast majority of alternative investments are still being made through pen-and-paper processes with long, complex subscription documents and lengthy cycle-times involving several mailings and signings. For the investor, that means in-person meetings, flipping through dozens of pages to find the appropriate initial and signature locations, mailing documents, and worst of all, waiting.

Alternative investments can take upwards of 3 weeks on average to process, and that’s if they are submitted correctly the first time, which about half of them aren’t. When there is an error, the whole process often has to start again. Some investments, like 1031 exchanges, fill up quickly, and, in the time it takes an investment to complete, investors can lose out on available equity.

Read Full Article

Go Back
Gordon Dunne
September 30, 2019

“Always, but especially in this day of lawsuits and ever increasing regulations, the responsibility for a financial advisor t do their own due diligence on products they sell falls squarely on themselves. No one is going to take greater interest in protecting their practice than they are. We use the Blue Vault Partners Nontraded REIT Review to keep us informed of the performance of every single nontraded REIT. Finally, complete transparency is available for advisors using nontraded REITs. Every advisor using REITs in their practice should make the small annual investment of subscribing to Blue Vault’s reporting services.”