a non-traded REIT. Non-traded REITs typically do not provide an estimate of their value per share until 18 months after their offering closes. This may be years after you have made your investment. As a result, for a significant time-period you may be unable to assess the value of your non-traded REIT investment and its volatility. Raising capital in the real estate market via a REIT will normally require an offering document to be written in order to give to investors or banks. In the private placement world, a prospectus is the most popular document used for capital solicitation. The REIT document details the terms of the offering such as the type of securities that the issuer is offering to investors for their funds. Master LLCs and their Sub-Series are organized for cash flowing assets while non-traded REIT is organized for long-term investments (U.S. SEC, 2011).
lxxix
Powered by FlippingBook