These are known as non-traded REITs (also known as non-exchange traded REITs).
You should understand the risks of the different types of REITs and their strategies before deciding to invest in them.
Mortgage REITs, on the other hand, provide money to real estate owners and operators either directly in the form of mortgages or other types of real estate loans, or indirectly through the acquisition of mortgage-backed securities.
Mortgage REITs tend to be more leveraged (that is, they use a lot of borrowed capital) than equity REITs.
On behalf of the defendants-respondents, James A Chokey, Mark E. As material to this appeal, the supplemental complaint alleged that the defendants breached their fiduciary duties to both Beloit Corporation and its creditors, and that the defendants wasted the assets of Beloit Corporation. The Settlement Agreement recited, it is expressly agreed that any settlement or judgment against any current or former [Beloit Corporation or Harnischfeger] director or officer will be payable solely from any applicable insurance of the Beloit Entities [as defined by the Agreement] or the [Harnischfeger] Entities [as defined by the Agreement] covering such directors and officers liabilities (specifically excluding any individual umbrella policies of such directors or officers). Although the bankruptcy courts assumption that the Committee of Unsecured Creditors and, later, the Trust, could use 108(a) to avoid the statute-of-limitations bar was not litigated as such in the bankruptcy proceeding, it was not litigated because no one, not the debtors or the defendants, objected to the bankruptcy courts June 5 order. As indicated above, Amasa Lumber Company was a solvent and going concern until well after Joseph Meyers connection with the corporation was severed. Although the third set of italicized words in the quotation from Mc Givern can be read as requiring both insolvency and a cessation of business, that reading would ignore the inherent redundancy of the phrase insolvent and no longer a going concern (that is, a cessation of doing business as a going concern that was not caused by insolvency would not prejudice those to whom debts were owed).