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.
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