What Your Financial Advisor Should Tell You About Nontraded REITs

Episode 36 of The Financial Advisor Podcast with Fexingo dives into nontraded real estate investment trusts — the high-commission, illiquid products that often sit quietly in client portfolios. Lucas and Luna unpack a specific case: a retired teacher in Ohio who was sold a nontraded REIT that tied up 18 percent of her net worth for nearly a decade with zero liquidity and a 7 percent upfront commission. They explain what nontraded REITs actually are, how they differ from publicly traded REITs, the fee structure that makes them so profitable for advisors, and the brutal liquidity trap that can leave investors stranded. Lucas walks through the SEC's recent 2025 guidance on valuation and redemption windows, and Luna flags the red flags — like the sales pitch that focuses on 'stable income' while burying the illiquidity risk. The episode also covers what a fiduciary advisor would ask before recommending such a product, including whether the client has an emergency fund, a time horizon, and a real need for private real estate exposure. No scare tactics — just the concrete mechanics and the questions every investor should hear before signing a subscription agreement. Plus, a brief note on how listener support keeps the show ad-free. #NontradedREITs #RealEstateInvesting #FiduciaryDuty #FinancialAdvisor #InvestorProtection #SEC #LiquidityRisk #CommissionConflict #PrivateREITs #DueDiligence #RetirementPlanning #AdvisorFees #AlternativeInvestments #InvestorEducation #FexingoBusiness #BusinessPodcast #FinancePodcast #TheFinancialAdvisorPodcast Keep every episode free: buymeacoffee.com/fexingo