Non-Traded REITS = Bad Investment - A candid conversation

I often read other financial blogs and I found this post to be particularly funny and scary at the same time and had to share.  I have always had a disdain for Non-Traded Real Estate Investment Trusts (REITS).  These are often sold by broker's who want a big paycheck.  Josh Brown of the Reformed Broker Blog shared a conversation that would never occur between an independent broker dealer and their "client".  Once you read it you will understand what I'm talking about:

An excerpt:

Rep:

Before we wrap up our quarterly portfolio review I would like to talk to you about a new investment I think you might be interested in.  You have been looking for more income and this is an investment vehicle that pays a 7% dividend.

Client:

Sounds great, give me the details.

(GIVES THE DETAILS)

Client:

Are you on drugs? Why would I pay 13% in fees on anything?

Check out the article here.

Have you ever been sold a bad investment?  Let me know below.