United Development Funding: A Ponzi Dependent On Debt?

United Development Funding: A Ponzi Dependent On Debt?

Non-traded REITs

Note: This is part I we have more to say and will be providing a part II

Non-traded REITs have become popular with investors over the past ten years as they promise high returns from real estate in an era when most banks are offering 0% interest on savings.

However, non-traded REITs have also have attracted plenty of criticism for their opaque nature, illiquidity and high fees.

The SEC is aware of the risk these vehicles post to investors. Non-traded REITs were picked out as one of the top five risks facing investors during 2015 by the SEC, and the Commission has highlighted the dangers of non-traded REIT investing several times in its...