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Coming off a disastrous 2016, sales of nontraded REITs could bounce back in 2017

January 4, 2017

Coming off a disastrous 2016, sales of nontraded REITs could bounce back in 2017

Newly designed products and Blackstone Group’s entrance into the industry could pump up the market

Dec 27, 2016 @ 12:16 pm | By Bruce Kelly | Investment News

After a disastrous 2016, industry analysts and executives are cautiously optimistic that sales of nontraded real estate investment trusts will bounce back next year.

There are a number of reasons why sales of nontraded REITs, declined from nearly $10 billion in 2015 to $4.5 billion in 2016.

One was a new industry rule, known as 15-02 by the Financial Industry Regulatory Authority Inc., that increased pricing transparency for investors. But now financial advisers are growing more comfortable with REITs designed to counteract that rule. These REITs have different share classes and commission structures that pay the adviser over time rather than in one, large, upfront 7% commission that the standard A share pays.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.