Schwartz Law is currently investigating claims against Jason ValaVanis located in Melbourne, Florida. Valavanis is currently associated with J.W Cole Financial, Inc. and was previously registered with LPL Financial Corp. and Metlife Securities, Inc. Valavanis is the subject of two (2) separate customer complaints related to allegations of unsuitable investment recommendations of unsuitable non-traded real estate investment trusts (“REITs”).
What are Non-Traded REITs?
A real estate investment trust refers to a trust company that owns, operates, and finances income-generating real estate investments. REITs are designed like mutual funds, which are essentially pooled funds from many investors used to generate economies of scale and gain access to investment options that they would not normally be able to access individually. As implied by the name, non-traded REITS are not listed and not traded on public exchanges which makes them almost illiquid. This prevents an investor from selling the investment if they want the ability to do so in the future. non-traded REITS typically pay large commissions, as much as 15%, to the financial advisor who sells this investment to their clients.
The expectation of any REIT is that the investor will eventually see income from its real estate portfolio with rent being the most common source of income. The types of properties that a non-traded REIT invests in early on might be unknown to the investors and the initial property acquisitions might be made through a blind pool, where the investors do not know the specific properties that are being added to the program’s portfolio. Early redemption of a non-traded REIT can result in high fees that can lower the total return. Like exchange-traded REITs, non-traded REITs are subject to the same IRS requirements that include returning at least 90% of taxable income to shareholders.
Investigation of Jason Valavanis
If you have suffered losses as a result of Jason ValaVanis, we would like to hear from you. We are currently investigating claims on behalf of a client who was sold unsuitable non-traded REITs by Valavanis. If you have had a similar experience, we would like to hear from you as your experience may assist us in the adjudication of claims against ValaVanis. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at [email protected].