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Behringer Harvard REIT, Risky Investments for Investors

Investors turned to the Behringer Harvard REIT for safe investing, but are now stuck holding essentially worthless positions.

In an attempt to avoid the risk of investing in the stock market, some investors chose real estate investment trusts (REITs). REITs are specialized entities that own or manage income-producing real estate. They are established to avoid corporate taxes, allowing pass-through taxation to the investors.

Financial advisors have recommended people invest a substantial portion of their nest egg in REITs, representing them as safe and conservative investments for retirement. The advisors may not disclose the REITs underlying financial condition and the risks of the investment becoming illiquid. One such example is the Behringer Harvard REIT I. This REIT never made any money and is now completely illiquid, thereby preventing investors from selling their positions. The REIT was sold to inexperienced and conservative investors, who are now stuck holding essentially worthless positions.

Failure to disclose these and other potential risks to investors could be violation of Securities laws and could also lead to a host of other viable legal claims, such as breach of fiduciary duty.

If you have suffered investment losses from REITs, contact us to tell us your story. We want to counsel you on your options.

14 thoughts on “Behringer Harvard REIT, Risky Investments for Investors”

  1. Chris Says:

    I have just inherited a trust from my dad that passed away in October of 2007. I won’t be 30 for two years and the firm the trustee used just invested 100k of the money in REIT funds against my wish. After repeated attempts to stop this, of which I was unseccessful, what should I do. Two of the investments were in the behringer reits that were made in jan.

  2. Anonymous Says:

    I attempted to get rid of this invesment and my financial planner advised me not to. What do I do now?

  3. Wei Says:

    The same story as other inexperienced investors have experienced: our financial planner invested our money in RETIS years ago without disclosing the underlying danger clearly, and we are half way stuck. Meaning “half way stuck” is that we are qualified to sell the shares due to disability condition but only get the half of value. Shall we sell them before loosing all of them? Or shall we wait and see?

  4. SUSAN Says:

    I ALSO AM A WIDOW AND TOLD EVEN THO RISKY IT WAS A GOOD WAY TO GET DIVIDENDS MONTHLY AT MY AGE. WELL, DIVIDENDS STARTED AT $147, 3 YRS AGO AND ON 06/14/10 IT WAS $20 INTO MY BANK ACCT. I NEARLY FELL OVER WITH DISAPPOINTMENT. I AM 60,WAS LOOKING FORWARD TO RETIREMENT IN FIVE YRS. ALL THE BIG COMPANIES HAVE RUINED OUR DREAMS, THERE IS NO ONE LEFT TO TRUST. WHAT DO WE DO?

  5. Gabriella Says:

    I purchased $40000 worth of Behr.Harvard REIT 1 in 2005. He sold himself as a financial advisor specifically for retired people who needed income. The dividend was 7% and if I purchased it right away I would receive an extra 10% in Behr.Harvard. I reinvested the dividend, which was lowered to 3% a while ago. Over the years I questioned him about the safety of this REIT and was made to feel like a fool with his implication that I was the only one of all his clients who questioned this REIT. Because I reinvested the dividend until last year, my supposed asset was worth over $57,825. The NAV was supposed not fluctuate from $10.00 a share and that plus the dividend is the main reason I purchased this REIT. Fortunately I started taking the dividend about 1 year ago and of course have to pay taxes on that. As you have heard, this is a worthless investment and cannot be sold. The supposed NAV is now $4.25 a share and my “supposed” worth is now under $25000. What can I do? I am also a widow with no pension other than social security.

  6. Angie Says:

    I have/had $25000 in this REIT and know find that it is worthless. I was told this was a safe investment for the funds that belong to my daughter as part of a minor settlement agreement and now it’s gone. What can I do?

  7. joseph Says:

    My advisior sold me on the idea of investing 42,000.00 in Behr. Harvard REIT 1 about one or two months before the account closed. I just found out the account is not liquid, and hasn’t been for many months.So far I have lost 25,000.00. What can I do and what are my options?

  8. Jerry Says:

    When I invested in the REIT the financial planner said that it was a safe investment and that it would pay a dividend of 7% annually, could step up each year and if not would never fall below 7%.

    When did they freeze withdrawal or the ability to sell the REIT I?

    This investment had built to 109K and I am now retired. It is a good thing that I had my investments spread over many bonds with no more than 4% risk.

    Please let me know if there is anything that can be done. I hear very little from Behringer these days, it looks like they are continuing with their pyramid scheme.

    Jerry

  9. Joseph Says:

    I invested $50,000 in BehringerHarvard from my retirement fund. It now has dropped to approximately $4.75 a share and now my fund is worth approximatley $25,000. I am at a loss as what to do. What are my options to recover?
    Respectfully requested

  10. TOM Says:

    I invested in a Behringer Harvard REIT and an Inland America REIT. Both have lost money, but Inland America has faired much better. I have found that using Financial Planners is a mistake. They recommend investing in extremely risky investments, most of which are ponzi schemes or are similar to ponzi schemes. I have lost almost 1/3 of my assets thru them. All I can say is be careful and look before you leap.

  11. Dude Says:

    An important point to remember here is that the share price is an arbitrary valuation based on the underlying assets and properties held. The current market values may not represent the true value of the properties in a normal market.

  12. Wei Says:

    Could we abused investors be united to file a law suit against Behringer Harvard or Inland Western REIT? A CLASS-ACTION LAW SUIT?

  13. Lisa Says:

    Sounds like the same stories all along, unethical to the point of being illegal sounds to me if these investors were not given disclosed details of this REIT, and I don’t mean here read this 200 page synopsis, face to face they were. My parents now ages 79 and 86 invested $20,000.00 of their retirement in this “safe” investment, since then their so trusted financial advisor is no longer with the company.

  14. calligal Says:

    I also invested for the 7% dividend in both Inland America and Behringer knowing the risk of REITS but who could have forseen the banking and mortgage problems we have had pushed on us. We can only hope that in 5-10 years, the values will upgrade. Commercial Real estate plummeted in the 80′s and then rebounded. The persons counting on the dividends for spending money now are really hurting.



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