Subject: File No. S7-35-11
From: Tilo Klaas

September 24, 2011

This document creates the impression that the SEC is considering changing the tax status of mREITS.

Many citizens rely on dividends from mREITS to support themselves financially. Given the state of the economy,
it is a fact that we have millions of people without full time jobs, and many more only working part-time. Many states do not have the funds to continue to pay unemployment benefits. Investments in the stockmarket, 401k
plans and IRA accounts have turned out to be dismal, in some cases catastrophic for investors. So called "safe" investments, such as bank accounts, do not have a return exceeding inflation. Real Estate, once thought to be a safe investment, no matter what economic situation the nation is in, has lost billions of Dollars in value consistently since the latter half of 2007. Medicare and Medicaid programs have overextended themselves to the point where it is questionable whether or not they will exist a few years from now.

What do you propose one ought to do to sustain an honest way of living with so many problems facing our people?

There have to be some investment vehicles left that allow investors to get them a return that at least compensates them fairly. And mREITS are certainly not without risk. But let the investor worry about that. Many mREITS have paid out regular, attractive dividends allowing thousands of investors to keep their homes and buy daily necessities that they otherwise could not afford.

I believe changing the tax status of mREITS will create economic hardships for many citizens and additional financial burdens for local, state and federal programs as these investors will lack this income.

America has more than enough of these problems as I am sure you are well aware of. Besides, dividends from these investment vehicles are taxable and therefore supportive of America. Additionally, it would be grossly unfair to change the status for those who have bought mREITS already because of their current tax status. This would not only affect their dividends negatively, but also the current value of this investment, as many investor would sell their shares at a loss, with "insiders" or persons to have advance knowledge of the changing status selling their shares first, therefore avoiding major losses.

PLEASE, do not change the status of mREITS.


Tilo Klaas