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Real Estate Investment Trusts or (REITs) are companies that pool together finances from investors and then invest in (and manage) real estate properties. In such cases, investors are then able to enjoy returns from their investments (in the form of dividends) without having to own or manage any of those real estate properties. While this is a highly regulated area, scams still happen. If you have lost money in a REIT scam, talk to Weltz Law to start the process of recovering your money.
Real Estate Investment Trust (REIT) Scams
REITs offer investors an easy and efficient way to get into the real estate sector with minimal or no prior experience. By investing in a REIT, an individual investor can earn dividends from profits made by the REIT. However, many investors have lost millions of dollars through REIT scams. These are perpetuated in a number of ways. For example, a REIT may sometimes not use the money for the purpose that it was meant for. Another way a REIT scam can be carried out is when the REIT is run inefficiently for the purpose of making money for the REIT managers rather than for the investors. Either way, this is considered a REIT scam and you have a right to recover your money.
Proving Real Estate Investment Trust (REIT) Scams
When it comes to REIT scams, most investors become aware that they have been scammed when the REIT is unable to pay their dividends. Sometimes, external auditors may raise red flags regarding how the REIT funds are being used. This includes potential conflicts of interest among the REIT managers and more. Once these are detected, investors can use any number of approaches including court litigation to ensure that all lost money is recovered.
Damages for Real Estate Investment Trust (REIT) Scams
If you have been a victim of a REIT scam, you can pursue legal processes to ensure that you get your funds back. Most investors use court litigation to recover their funds, with representation from experienced securities fraud lawyers such as Weltz Law. Investors can often recover their money as well as any interest on the dividends that may have accrued over time.