New York Securities Lawyers Blog

Malecki Law is investigating possible unsuitability claims against stock brokers and financial advisors who sold shares of KBS REIT I to investors. REITs are illiquid real estate investments, which may be unsuitable for both unsophisticated and elderly customers.

Just recently, KBS informed investors that it would be dropping its share price a whopping 29% from $7.32 to $5.16. This represents a nearly 50% drop from its original sale price of $10. For investors who bought shares of KBS REIT I as part of their retirement savings, this drop may be too much to handle.

In addition to the drop in share price, KBS has also informed investors that it will cease payment of its dividend. Since, many financial advisors sell REITs like KBS REIT I to retired customers as a way to obtain steady income, this announcement has to potential to be devastating to a retiree depending on that income.

However, all is not lost for investors who were sold KBS REIT I. Financial Industry Regulatory Authority rules prohibit stock brokers and financial advisors from selling unsuitable investments to the public. Therefore, investors in KBS REIT I may be able to recover their losses. It is the right of any and all investors who believe they may have suffered losses as a result of recommendations of their financial advisor to contact our offices to explore their legal rights and options. If you or a family member invested in KBS REIT I, contact the securities fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law's history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

The state of today's real estate market can differ from neighborhood to neighborhood, let alone market to market. Whether negotiating a commercial real estate transaction in New York, or making a real estate investment, knowing the market and having a New York real estate law firm with the experience to protect your rights can be critical to the long-term financial well-being of any endeavor.

As the Wall Street Journal reports, the college towns of Cambridge, Massachusetts and Denton, Texas would appear to have little in common. Yet both have seen substantial recovery in the real estate market. Using information available through the real estate site Zillow, The Journal determined 25 communities have rebounded nearly to pre-recession levels. However, none of these locations experienced the huge run-ups common in Florida, Nevada and California.

Some common indicators are the strength of the employment and rental markets. The healthier communities also have fewer foreclosures flooding the market. New York real estate investment attorneys continue to see terrific opportunity in the market. However, the many competing factors make it more complex than ever; consulting an experienced law firm can help ensure you avoid many of the pitfalls inherent in today's real estate market.

In other markets, The Journal reports housing prices are not likely to see substantial recovery until 2014.

A big part of the reason is the rising requirement for down payments. Combined with the negative-equity situation of many homeowners; the market is facing headwinds likely to keep it from rising substantially for some time. Many other homeowners are trapped by underwater mortgages, which contributes to a number of complications, including the inability to move for employment.

The heavy involvement of the feds in the mortgage market is another variable that could play a role in the timing of the recovery. Taxpayers have already propped up Fannie Mae and Freddie Mac to the tune of $138 billion. Federal agencies are now behind 9 of every 10 new mortgages. Congress has already increased the size of loans the agency can buy -- but such guarantees have been partly to blame for crowding out the private sector. Loan limits are set to decline modestly later this year, from $729,750 to $625,500 in the nation's highest-priced areas, including New York and Los Angeles.

An additional challenge to the market is simple math: Bundling mortgage-backed securities is not working because interest rates are low and investors are demanding higher returns. The securitization market is critical to the overall health of the real estate market because the banking sector is not large enough to hold more mortgages without increasing its deposit base.

Continue reading "Market Fundamentals Make Experienced Real Estate Advice Essential for New York Investments" »