Moody Rainey DWTN Austin DST Lawsuit Investigation:
What Investors Should Know If you’ve suffered losses investing in Moody Rainey DWTN Austin DST, you may be able to recover your money. The White Law Group is currently investigating claims against brokerage firms that recommended this investment without proper due diligence.
Moody Rainey DWTN Austin DST is a Delaware Statutory Trust (DST) created by Moody National Companies. It was launched in 2022 as part of a 1031 exchange offering and reportedly raised over $87.2 million from investors, according to the Form D filing. DSTs allow investors to defer capital gains taxes by reinvesting the proceeds from real estate sales—but they come with significant risks.
Key Risks of DST Investments
While DSTs may seem attractive to investors looking for tax benefits and passive income, they often carry hidden risks, including:
· Illiquidity – These investments are not publicly traded and cannot be easily sold.
· No Investor Control – You have no say in how the property is managed.
· No Capital Injections – If repairs or upgrades are needed, new capital cannot be raised.
· High Fees – DSTs often involve 6% to 10% in upfront fees and commissions, which may reduce returns.
Unsuitable Recommendations by Brokerage Firms?
Some brokers may have recommended this investment to clients for the generous commissions, not because it was appropriate. Brokerage firms are required to ensure that investment recommendations align with a client’s goals, risk tolerance, and overall financial picture.
FINRA Arbitration: A Way to Recover Your Losses
If your advisor failed to explain the risks this DST or recommended it inappropriately, you may be eligible to file a FINRA arbitration claim. This is a streamlined legal process for resolving disputes between investors and their financial professionals.
Contact The White Law Group for Help
Our firm has recovered millions for investors in DST claims. Call 888-637-5510 for a free case review. Offices in Chicago and Seattle, Washington. More info: www.whitesecuritieslaw.com
FAQs – Moody Rainey DWTN Austin
1. What is Moody Rainey DWTN Austin DST?
It’s a real estate investment structured as a Delaware Statutory Trust (DST), launched in 2022 by Moody National Companies for use in 1031 exchanges.
2. Why are DST investments risky?
They are illiquid, lack investor control, can’t raise capital for repairs, and often carry high fees and commissions.
3. What’s the difference between FINRA arbitration and a class action?
FINRA arbitration is an individual legal process where each investor files a personal claim against a broker or firm. Class actions are group lawsuits with shared outcomes. Arbitration can often resolve claims faster and more specifically based on your situation.
Last modified: June 3, 2025
