The Lightstone Value Plus REIT II most recent sponsor stated value is $10.00/share. However, it’s trading range reported by Central Trade, and Transfer was significantly lower at $7.05/share to $7.25/share.
Lightstone REIT is primarily focused on investing in and owning commercial and residential real estate properties in the United States and Puerto Rico.
For those that purchased for $10, this is a massive loss for investors. Unfortunately, Lightstone Value REIT is a non-traded real estate investment trust (REIT), which means most investors are unaware of the value until they try to sell it.
Non-traded REITs are generally sold by brokers and financial advisors from independent broker-dealer firms. These types of investment represent one type of Direct Participation Programs (DPPs).
The term non-traded means the pricing and sales are not on a major exchange. Investors do not know the value of their investments until they sell them.
Non-Traded REITs are usually riskier illiquid alternative investments that the SEC known as “private placement.” They fall under the law defined as Regulation D.
All brokerage firms promoting or selling private placements still have a duty to conduct a reasonable investigation of any investment it recommends.
In the past, FINRA has found significant problems regarding private placement product sales.
AlphaBetaStock.com has recently been reporting on stories of GPB Capital and Northstar REIT, where investors lost significant amounts of money. These types of investments are very risky for investors. Unfortunately, many investors are completely unaware of their losses.
The good news is that investors that lost money do have options to recover their losses. In most cases, the actual financial advisor is registered with the Financial Industry Regulatory Authority (FINRA).
FINRA has a claim process for investors to try and recover their investment losses. The dispute is generally straightforward and done by an investment fraud lawyer.
As scary as it sounds, these types of customer disputes generally only involve a simple paper discovery. There are no depositions and move very fast.
It is a more efficient alternative to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently.
Investment fraud lawyers typically handle all the cases with little involvement from clients. Haselkorn and Thibaut, national investment fraud lawyers, have set up a toll-free line for investors in non-traded REITs.
Investors can call at 1 888-628-5590 for a free case review.
Ruchi has an Accounting and Graduate Degree in Business from the International School and Business and Media. She is exceptionally skilled in financial databases like Bloomberg, ThomsonOne,Datastream, CapitalIQ, and Factiva. Her focus at AlphaBetaStock.com is research breaking stocks and investment stories.