Investigating Potential Claims involving CX Liberty Mill, DST
Are you concerned about your investment in CX Liberty Mill DST? If so, the securities attorneys at The White Law Group are here to help. We can take action by filing a FINRA Arbitration claim against the brokerage firm responsible for selling you this investment.
Carter Exchange reportedly forms and operates investment and real estate investment companies in the multifamily, office, industrial, retail, healthcare, and specialty sectors. The company reportedly sponsors 1031 DST properties.
CX Liberty Mill DST of Tampa, Florida reportedly filed a form D to raise capital from investors in 2019, according to a filing with the SEC. The total offering amount sold was purportedly $65,885,176 according to the Reg D Filing.
DST Investment Risks: CX Liberty Mill DST
Delaware Statutory Trusts (DSTs) are an alternative for 1031 exchange investors seeking replacement properties, with promises of potential monthly income and diversification without the burden of landlord duties. However, it is important to recognize the risks associated with such investments.
- One risk factor to consider is the possibility of property value loss. Like any real estate investment, there is always the potential for the value of the property to decline over time, impacting your investment’s overall worth.
- Additionally, DSTs are considered illiquid investments. They are typically offered through private placement offerings and lack a secondary market, meaning that you might encounter difficulties selling or trading your investment if the need arises.
- Another risk is the reduction or elimination of monthly distributions. Just like any real estate investment, if the property experiences unexpected vacancies or substantial damage, it may lead to a suspension of cash flow distributions, affecting your expected returns.
- Tax status changes are also critical to consider. The income stream and depreciation schedule of your investment property can influence your income bracket and tax status. An unfavorable tax ruling could eliminate the deferral of capital gains, resulting in immediate tax liabilities.
- Fees and expenses associated with DSTs can eat into your returns, potentially outweighing the tax benefits you were hoping to gain from this investment.
Is a 1031 DST Investment Suitable for you?
Often brokerage firms often push DST investments due to the high commissions associated with their sale and creation, despite the risks involved. If you believe that you have been recommended a high-risk investment unsuitably or not adequately informed about the risks, you have the option to resolve disputes through FINRA arbitration.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to seek recourse when brokerage firms fail to disclose the risks associated with an investment properly. In such cases, the broker or brokerage firm may be held liable for any investment losses you incur.
Free Consultation with Securities Attorneys
If you are concerned about your investment CX Liberty Mill DST, please contact The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
