Wells Real Estate Funds is a private investment company, sold by slick brokers... But not those you might see advertising on the evening news. This company invests in office buildings in the US. The brokers brag about how these buildings are completely leases, Class A buildings, all that sort of thing. Your investment is rock solid. You earn interest on your money, and can use the interest to buy additional shares in the Fund. The prospectus is, as always, a huge thick document with microscopic print. The broker, with a straight face and repeating things endlessly, promises this is very safe 'in these troubled times.' You can get your money out any time you want, except possibly right at the end of the year.
Well, it's a LIE, of course. As of May, no investors can get their money out of Wells Real Estate Funds. They claim that there is an escape clauses in the prospectus, and they can deny requests to withdraw money any time they want. Maybe they can. But is that how it was sold. Would ANYONE invest in this company if they knew in advance that their funds would be completely unavailable for, at minimum, 9 months, and maybe much much more.
Maybe this company is in financial trouble, who knows? The brokers, of course, and the company, of course, say everything is fine. Just a 'big investor' needed HIS money out, and that used up all the money they could let out for 2004. Oh, great. Thanks for handling the big investor, and leaving smaller investors without any way to get their money back.
Stay away from Wells Real Estate Funds!!! Your money is going into a one-way vault. Theirs.
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