Berthel Fisher & Company Financial Services, Inc.

A REIT is a security in a real estate property that may be traded similar to stocks and bonds on the stock exchange, or formed as a non-traded REIT. Berthel Fisher offers several portfolios of real estate investment trusts. Our REIT portfolios consist of (but are not limited to) large and small commercial properties, office buildings and residential estates.

REIT's are an investment vehicle used for investing in real estate. REIT's can be publicly traded with ticker symbols on an exchange, publicly registered but non-traded (illiquid and not on an exchange), or non-registered (Reg D).

REIT's allow investors to diversify their ownership of real estate by buying the public shares or investing in the operating partnership units which the REIT will then use to purchase real property. REIT's may be diversified (owning various real estate assets like office buildings, retail centers, industrial buildings, apartments or mortgage debt), or specific (office only, etc.).

REIT's must distribute 90% of their annual income to the investors to remain qualified as a REIT which allows for no taxation to the REIT at the corporate level. This avoids the double taxation issue. In addition REIT's provide a source of income to the investors on an annual basis as long as the REIT operates profitably. In some cases the distributions from the REIT may be reinvested in the REIT to purchase additional shares or operating partnership units.

REIT's are a way to help reduce risks of investing in real estate as well as diversifying an investor's portfolio while providing a source of income with the possibility of appreciation. Diversification can not eliminate the risk of investment losses. Berthel Fisher and Company has selling agreements with many of the prominent publicly registered non-traded REIT companies in the market today.

REIT's involve a high degree of risk and some of the more significant risks include: The value of shares of the trust will fluctuate with the portfolio of the underlying real estate related investments. Redemption will be at the price which may be more or less than the original price paid for units of the trust. There can be no assurance that a secondary market for the REIT will be maintained by the issuer. Therefore, there is risk that an investment in the REIT may be illiquid. The REIT is subject to risks such as potential conflicts of interests, risks associated with the lack of liquidity, lack of experience in operating a REIT, risks associated with the leveraging the investment, the special risks if investing in real estate such as market risk, interest rate risk, lease terminations, and potential adverse economic and regulatory changes.

This does not constitute an offer to sell or a solicitation to buy any securities. An offer can only be made by a prospectus that contains more complete information on risks, management fees and other expenses. Read the applicable prospectus before you invest or send money. Consult the applicable prospectus or offering memorandum for suitability standards and minimum investments in your state.