Looks a bit shady - But then again can't judge a book by it's cover. Lots of clients have lots of money and you would never guess it right? But honestly, there site is shady.

They portray themselves as a “conservative” investment firm. Once
you’re there- you’ll be a salesman for their private illiquid REIT.
They used to incent the brokers with an 8% commission to sell the
product. The BM would require all rookies to sell this private REIT to
all customers with over $25,000 to invest. Forget about financial
planning or asset allocation. Your job there is to be a salesman for a
questionable product. Read the prospectus on it. NASD has come down on
them for sales contests and suitability. Ask for the history of all of
their previous REITs. The issue price, and liquid selling price. Ask to
verify this all in writing. Don’t take their word for it.This is how
they can afford to pay such high starting salaries. If you leave, the
customer can’t come with you. The REIT is illiquid. Quite a slick
operation there. And expect to be treated like a stupid piece of
garbage if you are a rookie.

This week from the NASD site...

David Lerner Associates Suspended from Conducting New Business in Variable Annuities, Variable Life Insurance for 30 Days, Fined $400,000 for Violations of New York State, NASD Regulations

Thank you all for responding.  I appreciate your time and honesty. I will need to ask my friend to read this board.  He is actually being trained on how to sell REIT's! 

REIT’s themselves are not bad. According to Ibbotson, a 10-20%
weighting in REITs between 1970 and 2004 would have reduced portfolio
risk and increased returns on an annual basis. The problem at Lerner is
that they insist you sell
their private illiquid REIT. They don’t want you selling public REIT
mutual funds or liquid publicly traded REITs. Very fishy!!

Pardon my ignorance Topbroker.  I am pretty new in this business. 

When you say private illiquid REIT vs/ publicly traded REIT's.  Would you mind elaborating more on the private REIT's risks?  I want to make sure that I understand this part.  Are all private REIT's illiquid? Any information will help me.

Thanks for your help!

Private reits are illiquid, usually requiring the REIT company to provide liquidity which will be determined by them and can mean many things ($ locked up for 5 years or more/less, 30 days to get $ once sell order is consumated etc...)

Publicly traded Reits just like Publicly traded companies have daily liquidity through the market exchanges, also they have more visibility and due dilligence done on them by the various firms that provide research on the Reits.

They want you to sell the private REITS 'cause they pay 8% or more in commissions, not because they are superior to publicly traded REITS.