Concerned about your investment in CX Reagan Crossing, DST?
Are you concerned about your investment in CX Reagan Crossing, DST? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties. CX Reagan Crossing, DST of Tampa, Florida reportedly filed a form D to raise capital from investors, according to a filing with the SEC. The total offering amount was purportedly $19,964,044.
Risk Factors related to a 1031 Exchange
Property Value Loss – All real estate investments have the potential to lose value over time.
Illiquid Investments – 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions.
Tax Status Changes – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities.
Fees/Expenses – Investors’ returns may be affected by the costs associated with the transaction. and may outweigh the tax benefits.
Investigation involving CX Reagan Crossing, DST
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk 1031 DST investments to investors. Despite?the risks of investing in DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Broker Due Diligence: Are your Investments Suitable for you?
Brokerage firms engage in due diligence to verify that the investment products they recommend and sell align with their clients’ needs and objectives. This essential procedure serves to safeguard the interests of both the brokerage firm and its clients, guaranteeing that the investments being presented are in line with the client’s investment goals, risk tolerance, and financial circumstances.
Fortunately, the Financial Industry Regulatory Authority (FINRA) provides for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an?unsuitable investment recommendation?or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim. If you are concerned about your?investment in CX Reagan Crossing, DST please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://whitesecuritieslaw.com/
