Updated Saturday, April 19, 2014 as of 8:37 PM ET
Schorsch Pledges 'No Pressure' to Sell Nontraded REITs
Nontraded REITs -- the illiquid and scrutinized but potentially high-yielding real estate securities -- aren't for everybody, says Nicholas Schorsch, the executive chairman of RCS Capital. And, he claims, RCS' burgeoning empire of advisors and brokers will face "no pressure" to sell the products to their mass affluent clients.
That pledge may come as a relief to the brokers and financial advisors from Cetera Financial Group and J.P. Turner, two independent broker-dealers that RCS agreed to buy last month. Because Schorsch is also chairman and CEO of  American Realty Capital, the country's largest sponsor of nontraded REITs, it was hardly surprising that those advisors were concerned that they might be compelled to sell nontraded REITs to their clients.   more »
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A survey of 500 mass affluent investors by an industry association finds -- conveniently -- high awareness and use of nontraded REITs. more »
For RCS advisors and brokers, the sweet spot will be individuals and families with $300,000 to $3 million in investable assets, Schorsch says. more »
Expected interest hasn't materialized for Merrill Lynch's offerings in the non-traded REITs asset class. more »
Larry Roth, former president and chief executive officer of Advisor Group, one of the country’s largest networks of independent broker-dealers, is joining Realty Capital Securities, a major broker-dealer and wholesaler of real estate investment trusts, as chief executive officer. more »
As real estate recovers, non-listed REITs are soaring, but they haven’t been much of a hit with customers of Merrill Lynch. more »
In TD 9626, the IRS issued final regulations under Section 337(d) of the Tax Code to provide guidance concerning certain transfers of property from a C corporation to a regulated investment company or a real estate investment trust. more »
REITs “have been one of, if not the biggest contributors” to the underperformance and volatility in mortgage bonds, said Bryan Whalen, co-head of mortgage bonds at Los Angeles-based TCW Group Inc., which oversees about $131 billion of assets. more »
First Allied Holdings, an independent broker-dealer, is set to be acquired by RCAP Holdings. more »
In a low-yield environment, payouts of 4% to 6% have many investors thinking about increasing their exposure to real estate. more »
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