Real Estate Investments
What Every Investor Should Know
Your interest in a real estate investment opportunity may begin with a trusted family member, friend, neighbor or business associate who approaches you to talk about some impressive financial gains. An advertisement in a popular newspaper or online service
catches your eye with a promise of guaranteed returns secured by an interest in a piece of real estate.
A general rule of thumb with which to start is that if you as the investor are not in control of the real estate transaction and are expecting a return on your money, the transaction probably involves a security. Because the investment may involve a chunk
of your life savings, consider consulting with an attorney knowledgeable in securities law to provide a legal interpretation for you and evaluate any exemptions claimed by the promoter.
What you may not realize is that some of these investment opportunities may be unregistered securities or worse yet — scams. Whether a real estate investment is a security or not is not always easy to determine and depends upon the unique facts
and circumstances of the transaction and not on what a promoter calls the investment product.
Read more about
risks associated with real estate as a security before you invest.