PLDGP - Punishment Coming For Real Estate Investors

• We’ve spoken occasionally about the dangers inherent in typical “non-traded real estate” investments. Many of them have excessive fees, high leverage, and underperform publicly-traded REITs.
• There's one particularly large fund that has performed better than many others: TIAA Real Estate Account (QREARX). It's better than the typical "non-traded REITs."
• We believe investors in QREARX should be looking to close to positions and reallocate. A lack of liquidity for the underlying assets can inflate the “Net Asset Value."
• Due to guaranteed liquidity, investors may still be able to pull out of the fund at nearly peak pricing levels. They could go back in when major REITs trade near or above NAV again.
• Since QREARX now has a maximum new investment of $150,000, investors with huge positions may have difficulties re-establishing the position.

For further details see: