Resource Real Estate Opportunity REIT is a risky and complex alternative investment that was a high-commission investment for the broker-dealer and financial advisors selling the products.
This investment product was often marketed to individual retail investors as a non-traded real estate investment trust (REIT) and presented as safe, income-producing investments. In that process, the material risks of the product and the investments were not always adequately disclosed to investors.
The Resource Real estate Opportunity REIT originally sold for $10.00/share, and the most recent sponsor stated valuation reflects an increase to $11.10/share. On the surface, this may look good to investors, but the lack of an actively traded market for these securities as well as a general lack of transparency with these types of investment products certainly raises questions when owners received a recent tender-offer notice from Comrit Investments 1, L.P. offering only $6.11/share. For investors who originally made investments at or near the $10.00/share price range, this represents a substantial loss in value.
What Should Resource Real Estate Opportunity REIT Investors Do?
If you are an investor or know someone that was sold Resource Real Estate Opportunity REIT and you are concerned about potential investment losses, you have already liquidated your shares at the tender-offer price (or are considering doing so). You are not sure what to do about your investment losses; there is something you can do.
Perhaps you received inadequate disclosures about your non-traded REIT investment, or never had adequate disclosures of the complexity or risks of these investments, and you have now incurred losses. What are your options?
Option 1: You can hold on to the investment and see if something changes. Unfortunately, there are potential laws, rules, and a statute of limitations that may impact your ability to bring a claim to recover losses.
Both the financial advisor and broker-dealer firms must make sure that investments are suitable. This includes providing proper due diligence on the investment products and making sure it is suitable for investors. The broker-dealer itself is charged with overseeing and supervising the recommendations.
There have been many recent cases involving the Financial Regulatory Authority (FINRA) that support investors’ claims that risky investments, such as non-traded REITs are too risky for many investors. One of the other issues cited is liquidity because these types of investments can’t be quickly sold on the exchanges.
Option 2: For many Resource Real estate Opportunity REIT investors, an excellent option includes filing a FINRA customer dispute. This alternative form of dispute resolution is private and faster and more efficient than traditional court litigation. During this type of claim, there are not usually any depositions and is generally paper-based discovery.
You should contact experienced securities fraud attorney who can review your situation personally and properly give you all your options and rights to recover losses.