Non-Traded REITs were and are one of the worst investments individual investors could make, aside from maybe annuities -- which is, surprise surprise, another DLA specialty. Assets owned by Apple REIT 9 shares were used, via the merger, to bail out the floundering Apple REIT 8. Using assets from a successful REIT to bail out the assets in an older, totally separate and less successful REIT is the very definition of a ponzi scheme.
compass wrote:Plus the insiders own millions of shares.
The insiders who own these millions of shares were GIVEN their shares for PENNIES on the dollar through a virtually RISK-FREE options program that would NEVER have been allowed by any normal investment manager. This program was NOT offered to you (the "outsiders"), even though it DILUTED your legitimate, hard-earned interests in the REIT. And yes, the "insiders" earned these bonus shares on Apple REIT 8, even though Apple REIT 8 was sucking swamp water.
In addition to the options program (search "Series B Preferred" in the Prospectus), these same DLA/Apple insiders collected enormous fees and commissions for taking your money, to the tune of MANY millions of dollars. At the same time YOU just barely broke even. WAKE UP! Georgia Gulf was right about the Stokholm Syndrome. What your returns would have been if all of these shenanigans had not occurred?
Do yourselves a favor and call Vanguard at 877-662-7447. Get some legitimate financial advice.