A year and a half ago, FINRA announced it would start requiring nontraded REIT sponsors and brokers to show just how big a bite commissions – of 12% to 15%, or even more – take out of client investments in this asset class.

In an almost-immediate response, the industry created a new T share class, which replaces high, upfront commissions with trailing commissions. The result is that T shares can extract a similar magnitude of commissions as nontraded REITs over time in a steady drip.

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