Navigating real estate investment trusts (REITs) can be challenging. One such REIT under scrutiny is Moody National REIT II, a non-traded REIT that has left many investors facing significant losses.
The Impact on Investors
Bakhtiari & Harrison is investigating the losses suffered by those who invested in Moody National REIT II based on their brokers’ recommendations. This non-traded REIT, once promising, saw its value plummet in 2020, largely due to the COVID-19 pandemic. Shares dropped from $25 to $8 on the secondary market by late 2021. As of 2023, shares may sell for as low as $6.60. Comrit Investments 1 LP has offered to buy shares at $10.89 each, following similar offers in October and August 2023.
Understanding Moody National REIT II
Moody National REIT II attracted investors looking to diversify their portfolios and capitalize on real estate. However, its performance has been disappointing. In June 2020, it suspended its offering and distribution payments, alarming investors. The REIT’s refusal to estimate share values as of March 2021 has left investors uncertain about their investments’ future.
The Risks of Non-Traded REITs
Moody National REIT II highlights the risks of non-traded REITs. Unlike publicly traded REITs, non-traded REITs lack liquidity and transparency, making it hard for investors to assess their value and growth potential. High fees and commissions further reduce returns, and the illiquidity makes it difficult to exit positions, even amid significant losses.
Recovering Losses: FINRA Arbitration Claims
Investors who have suffered losses may recover them by filing a FINRA arbitration claim against the brokerage firm that sold the REIT. Brokerage firms must ensure the investments they recommend are suitable based on the investor’s age, objectives, and risk tolerance. If a firm fails in this duty, it may be liable for the losses. Bakhtiari & Harrison focues on representing investors in these claims, helping them recover losses from unsuitable investment recommendations.
Moody National REIT II is a reminder of the risks of non-traded REITs and the importance of due diligence. For those who have suffered losses, filing a FINRA arbitration claim with experienced lawyers like Bakhtiari & Harrison can provide a path to recovery. Call us today for a free consultation.