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Thanks Inland American!

Posted: Fri Oct 01, 2010 12:24 pm
by ddo2
Yesterday, I got home and found 2 shiny envelopes from Inland American. They contained a letter, dated September 13 informing me of a shareholders conference call September 24, This conference call was to announce their new share value as required by FINRA for a closed REIT. Of course the letter had lots of reasons why the number will probably go down, and why FINRA rules aren't fair, blah, blah, blah...

But, did you catch the dates? 10 days of notice for a meeting/call (good) arriving nearly a week after the call (bad). Inland is in Chicago. I am in a major East Coast city. Does it really take 2 weeks to get here? I think not. If I could prove they mailed this after the meeting, I would file a complaint.

So, I had to google the new price ($8.03). I'm sort of immune to bad news in REITs these days, so a 20 percent drop isn't so bad. I'm not immune to what looks like shady behavior to avoid public/shareholder disputes.

Re: Thanks Inland American!

Posted: Mon Oct 04, 2010 6:56 am
by lawfox
Save the envelopes and call the Postmaster. Ask why the Post Office took so long to deliver the mail. They will investigate and establish, probably, that the letters were deposited some time after the date on your letter. That may vitiate the effect of the notice and require the Company to re-do the mailing and conference call. It may also establish a pattern of behaviour by the Company.
Good Luck.

Re: Thanks Inland American!

Posted: Mon Oct 04, 2010 8:54 am
by ddo2
I thought of that, actually. But by mailing them bulk, there's no postmark.

Re: Thanks Inland American!

Posted: Tue Oct 05, 2010 7:18 am
by lawfox
Permits are required for bulk mailing and the Post Office keeps records of the mailings. You might send a copy of the envelope, both sides, to the Postmaster for the zip code on the mailer and ask when it was received by the Post Office and when it was mailed out. Tell him/her that the letter was received in the manner you have described.
Also. write to the Company and ask when they actually mailed the notice and explain to them what happened. Demand a new notice and conference call. And demand that you be sent future notices via first class mail because the process they have used is demonstrably unreliable. Send it certified, return receipt requested. You can then compare the responses.
Good Luck.

Re: Thanks Inland American!

Posted: Mon Nov 01, 2010 10:44 am
by Whatyear
hi dd02,

I am also the proud owner of this "investment". But for me the concept of a "non-traded REIT" is new, i.e., I was not aware it was a category of REIT's. I knew mine was illiquid b/c I tried to trade it and couldn't, but WOW.

So let me ask you this - do you reinvest dividends or take them in cash or is there even a choice? I am just coming to grips with all this.

Also, back when we did try to sell this my husband talked to someone at Inland American and he seems to remember being told there might be another selling opportunity in August 2011. Does that ring a bell at all with you?

Thanks.

Re: Thanks Inland American!

Posted: Tue Nov 02, 2010 12:39 am
by REIT Wrecks
Hi Whatyear, I will try to answer some of your questions in advance of ddo2, who will I'm sure will be along shortly. YES, you CAN elect to take your dividends in cash, and in my opinion that is the only sensible election. As you can see from several of the posts on this board, the dividends are not only being overpaid (so why not just take the cash?), but by reinvesting them at the ridiculously unsubstantiated ERISA valuations, you are almost guaranteed to be overpaying for the stock (see [url=http://www.reitwrecks.com/forum/viewtopic.php?f=2&t=7]What Are Inland Western Shares Really Worth?[/url]). Why add insult to injury? As for increased liquidity in August 2011, I'll believe it when I see it!

Re: Thanks Inland American!

Posted: Mon Nov 08, 2010 8:22 am
by ddo2
Sorry for the delay getting back to you guys, I've been traveling.

I have Inland Western and Inland American. Currently, I'm in the reinvestment plan on both. My situation is a little different than most REIT holders, in that I have no need for income now. So, the question is whether, as RW points out, the re-investment price is a further bad deal, but also whether you think you can mitigate your damage with some dollar-cost averaging. With Inland Western, the return rate is so low right now, and the price is also fairly low (although not as low as RW's chart), that I haven't really toyed with stopping the reinvestment. With Inland American, I am in the process of stopping. I've been looking in at buying on the secondary market, since, if you want to play with price averaging then that might be better. (Also, you should know the broker-dealers who sell the REITs are usaully prohibitted by the issuers from selling you secondary market shares.) But, my limited due diligence so far is that the retail investor can't really get a lot of savings via the secondary market.

Re: Thanks Inland American!

Posted: Mon Nov 08, 2010 1:20 pm
by dgbreen
Hello,

Just a few thoughts. First, Inland American does not restrict brokers from buying in the Secondary Market for Limited Partnerships and REITs. The restrictions come from the Broker/Dealers that the Brokers work for. Some allow the Broker to buy for their clients, others do not. If you wish to buy in the Secondary Market you should find a Broker that has been approved for this market.

Second, without commenting on the new value that Inland has given Inland American ($8.03 p/unit), we do see units trade at a discount to this value. It is up to each of us as participants to determine how much discount we require. One mans discount, is anothers inflated price. The average price for July/August was $6.45 p/unit or a 19.67% discount to the value reported by Inland.

Last, you may want to consider turning off the DRIP. The DRIP does not offer you the discount to value that the Secondary Market may allow.

Thanks
Dan Breen

Re: Thanks Inland American!

Posted: Mon Nov 08, 2010 1:39 pm
by ddo2
@dbgreen, Thanks for your input. I guess my question is which secondary market do you recommend? I'm not looking for a new large broker arrangement just to pick up a few defensive secondary market shares.

At Whatyear, I missed your part about August 2011. I'm not sure where that date is from. Technically you can sell now on the secondary market. As for the buyback program, I doubt you got that information from anyone official for a variety of legal reasons. I doubt either Inland Western or American will re-open to buy back in 2011. Once they do re-open they are going to have a large amount of pent-up demand.

Re: Thanks Inland American!

Posted: Mon Nov 08, 2010 2:14 pm
by dgbreen
Hello,

Since you asked...

You can contact our Trading Desk via www.sellreits.com. Talk with Jack.

Thanks
Dan