Where do you sell your non-traded REITs (dogs)

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Quickblue02
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Where do you sell your non-traded REITs (dogs)

Post by Quickblue02 » Tue Jun 30, 2020 3:31 am

I am working on settling an estate of a relative. Looks like their financial advisor got them in a non-traded REIT many years ago. The non-traded REIT is Inventrust. I know these non-traded REITs are very bad for a portfolio and I will not even call them investments. They are scams. Inventrust does not currently have a buyback program. Do you guys have an on-line venue to sell these non-traded dogs?

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bertilak
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Re: Where do you sell your non-traded REITs (dogs)

Post by bertilak » Tue Jun 30, 2020 7:03 am

Quickblue02 wrote:
Tue Jun 30, 2020 3:31 am
I am working on settling an estate of a relative. Looks like their financial advisor got them in a non-traded REIT many years ago. The non-traded REIT is Inventrust. I know these non-traded REITs are very bad for a portfolio and I will not even call them investments. They are scams. Inventrust does not currently have a buyback program. Do you guys have an on-line venue to sell these non-traded dogs?
My uncle owned a non-traded REIT: BRE SELECT HOTELS CORP SER A PFD

Every few years they would redeem shares. Eventually, all shares were redeemed.

I may be misremembering the details but contractually they had to pay a certain dividend. The amount went up periodically and there was a limit on how many shares they could redeem. The incentive for them was to redeem as many shares as the contract allowed and as they could afford because the dividend was expensive for them.

It was a pretty good deal for the investors, while it lasted.

Occasionally my uncle got 3rd-party offers to buy his shares but they were always low-ball offers.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet

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nisiprius
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Re: Where do you sell your non-traded REITs (dogs)

Post by nisiprius » Tue Jun 30, 2020 7:32 am

Yes, there are firms that specialized in trading non-traded REITs. My late brother owned a couple, and, yes, one of them was InvenTrust. I must say that my brother's advisor was not only unhelpful, but, worse yet, promised to put me in touch with one of these firms and slow-walked the request. ("Sure thing, I'll get back to you," lather, rinse, repeat).

What worked was contacting InvenTrust itself, I think through their website's "contact us" link. They provided me a letter with a list of firms. I don't want to name any specific firms. Among other things, the "legitimate" side of the business calls these firms bad names like "bottom-feeders." I do not want to say anything about what percentage of fair value they pay, or whether it is better to hang on rather than selling to one of them. The letter began
The following secondary markets have offered for sale shares of InvenTrust Properties...
listed six firms, and closed
This list is being provided to you for informational purposes only. None of the secondary markets listed above are affiliated in any manner with InvenTrust Properties, Inc. or any of its affiliated companies and neither InvenTrust nor any of its representatives are able to make recommendations, representations or warranties for any of these specific entities. InvenTrust and its affiliates will not be responsible for any actions of any secondary market entity. Prices and fees may vary. You may want to contact your financial advisor before making any final decisions on selling your shares.
I contacted two, found that their "quotes" were actually very close together, went with the one that seemed most convenient.

As with changing brokerages, the key seems to be to work with the company that wants to buy. Whether or not I got a fair price--the eagerness, friendliness and energy of the firm strongly suggests I didn't!--the process was straightforward and smooth, and the number of dollars the estate received was acceptably close to the expectations the firm set.

They did what they said they would do.

My guess is that they get a lot of business from estates who just want to be out from under and settled.

Incidentally, that should be a consideration in choosing investments. In estate situations, often there's a rush to liquidate, and you need to review "how problematical would it be for my executor to liquidate this?"
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

ncbill
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Re: Where do you sell your non-traded REITs (dogs)

Post by ncbill » Tue Jun 30, 2020 8:09 am

I used Central Trade & Transfer (http://www.cttauctions.com) recently to get rid of the last of my non-traded REITs & BDCs.

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