Hello,

These non-traded REITs were recommended to me.  Very little info out on the web for these specific REITs.

Any idea on getting the original investment back after investing in these REITs?

Is it a good idea to invest in these types of REITs?

Thanks

I've been out of the investment business to long now to be up to speed on Cole and REITs, but I did have a friend and coworker who went to work for them years ago. At the time, they were well regarded and IIRC, had properties in AZ, although I may be wrong about that.

REITs can be a solid addition to a portfolio and come in different types. Some REITs buy distressed properties and hold for sale later with appreciation in mind. They're only interested in buying very low and selling later for a gain (some are "vulture" investors as they buy properties that are out of favor, or they may buy in geographical areas that are out of favor). Others are just buying good properties that appear to be undervalued, for whatever reason.

Others are comprised of income properties and are bought as an income alternative, similar to adding a bond for cash flow from predictable dividend payments. Rental properties may be apartment buildings or institutional properties like big office buildings. In either case, you're likely looking more for income with appreciation as a secondary objective.

In all cases do your due diligence on the manager's track record. Some can certainly be illiquid and that should be taken into consideration before buying, while others are as liquid as stocks and trade on exchanges like stocks. Whether or not you should buy them should be discussed based on your own financial situation, taking into consideration your need for liquidity and tax concerns, e.g. are you better suited for income or appreciations.

Hope that's a tiny bit helpful.

Like what Gee Gee said.

I could tell you all about those two offerings how they work, if they are worth a darn or not, but I can't thank the regulators.

What I can tell you is that you need to make sure you know what you are buying.

Also, due to FINRA rule 15-02 the way that stuff is reported now is beyond messed up, like they went full scale scorched earth.

Thanks for everyone's input...

My financial advisor wants to use these investment vehicles as a hedge against market loss.

The Cole II pays a 5.73% dividend and the Cole V pays a 5.97% dividend.

Both Coles charge a 10% front-end buy in.  With a one year hold, 95% at two years and three years for a 100% redemption.

I am about 2-3 years from retirement and these are recommended to be about 20% of my portfolio.

Is this a good idea?

Thanks...

ETA...What did FINRA rule 15-02 do?

Thanks again...

Place holder for tomorrow when I can give you the skinny.

Thank you...

I cannot find hardly any info on these products in the "wild"...

ok im back....

Yeah you won't find much info about them because they aren't publicly traded. You can however find a lot of info on them just reading through the prospectus.

anyhow without giving advice, II looks like it's in office buildings, office parks, dist hubs, mfg facilities etc, where as V seems to be in the retail store front sector.

Click here for some info on COLE the company, and what they been up to

Also, those distributions aren't exactly anything to be exciting about.

You also need to see if you are buying the T share or A share, the comp to the advisor is the same, one has it upfront the other is spread over a few years. either way the total is the same, but one will look worse on the statement than the other, now we get started on 15-02

15-02, is a a little odd, the best way I can describe it is that imagine if you bought a house and there was a realtor involved and you paid them 10k dollars. Now imagine when you went to get the house appraised the appraiser gave you a value of your home but backed out the realtor fee you paid 5 years ago.

What 15-02 was suppose to do was to make 40 act private investments transparent on the fees. Which it did, but the parameters in which they allow you to mark the investment to market doesn't make much sense, considering it's not publicly traded.

20% doesn;t tell us much with out knowing what else you have in there.

Also, what firm is this guy with? It's a little odd that his firm's research dept is recommending them.

Thanks again on your help.

He runs his own firm http://sanchezwealthmanagement.com/.

Are these risky investments?  i.e. A good chance to lose principal?

Any recommendations to an area that has good, safe returning dividends?

I knew he did, but this is his broker dealer Independent Financial Group, i just called them and they don't have an in house research dept. Hence why he is recommending COLE, and that's why all independents aren't the same and differ from one another.

are they risky, I can't tell you that here unfortunately. recommendations, how I wish I could help here, but I can't, thanks to the regulators.

Is he trying to use the REIT in place of bonds in your portfolio?

I checked out his firm, I bet the customer service is very good, that's a serious comment.

Thanks again for your input...

He is using the REITs as a "hedge against market fluctuations"...20% of the recommended portfolio...

Your comment about his customer service being very good...does that mean that your opinion is that he is there to sell a product instead of watching out for the need of his clients?

No problem, I wish I could help more.

Back in the day before 15-02 it was a hedge against statement fluctuations, as the price per share showed up at 10.00 a share and stayed there until a liquidation event and then you found out what they were worth. Today, it's not the same, the REIT company has two choices, it can mark to market or show NAV of the shares. So, there is going to be more movement than in the past, the movement though is going to be a quarter by quarter thing, it won't be daily because the investment isn't traded.


my customer service comment is that He's the one advisor in the office and he has like 4 other non advisors in the office, So I imagine they are very easy to get a hold of and keep you in the loop.