Concerned About Your Investment in BR DeSota DST?
If you invested in BR DeSota DST and are now facing losses or concerns about the recommendation you received, you’re not alone. The securities attorneys at The White Law Group are currently investigating whether financial professionals may have improperly marketed this high-risk investment to retail investors.
What is BR DeSota DST?
BR DeSota DST is a Delaware Statutory Trust (DST) offering sponsored by BlueRock Value Exchange, designed for investors seeking to complete a 1031 exchange. These investments are typically structured to provide passive income and tax deferral benefits.
According to filings with the SEC, BR DeSota DST was launched in 2019 and purportedly raised approximately $37.2 million from investors. Like many DSTs, this offering was sold through independent broker-dealers and marketed as a stable, income-producing real estate opportunity.
Understanding the Risks of 1031 DST Investments
While 1031 DSTs can offer certain tax advantages, they often carry significant risks and limitations, particularly for conservative or income-reliant investors. These may include:
- Limited Liquidity – Investors usually cannot sell their interest until the entire property is sold, which could take years.
- Lack of Control – Individual investors have no decision-making power in the management of the property.
- No Ability to Raise Additional Capital – If unexpected issues arise, such as major repairs or a downturn in rental income, the trust cannot secure new funding.
- High Upfront Costs – DST investments are often associated with total fees and commissions in the range of 6–10%, which may significantly reduce the actual value of the investment at the outset.
Did Your Broker Properly Vet This Investment (BR DeSota DST) ?
Brokerage firms and their registered representatives are required to ensure that any investment they recommend is suitable for the individual investor, based on factors like age, income, financial experience, and overall risk tolerance.
Additionally, firms must perform reasonable due diligence before offering complex, high-risk products like DSTs. Failure to meet these obligations may be considered negligence or even misconduct under FINRA rules.
FINRA Arbitration May Help You Recover Investment Losses
Investors who were misled or sold unsuitable investments may be eligible to recover losses through FINRA arbitration—a forum that resolves disputes between investors and their financial professionals.
The White Law Group has successfully handled hundreds of FINRA claims and represents investors nationwide. We work on a contingency fee basis, meaning you pay no legal fees unless we recover funds for you.
Contact a Securities Attorney Today
If you are worried about your investment in BR DeSota DST, contact our offices at 888-637-5510 for a free consultation. Our team will review your case and help determine whether you may have a valid claim.
The White Law Group is a national law firm with offices in Chicago, Illinois and Seattle, Washington, focusing exclusively on representing investors in securities fraud and arbitration matters.
Frequently Asked Questions (FAQs)
- Are all Delaware Statutory Trusts risky?
Not all DSTs are inherently bad, but they are complex and illiquid investments. They may not be appropriate for investors needing flexibility or capital preservation.
- What happens if the property under a DST underperforms?
Since DSTs cannot raise additional capital and investors have no control, underperformance can lead to diminished returns or even principal loss, with no way to make changes mid-stream.
- What is the difference between FINRA arbitration and a lawsuit?
FINRA arbitration is a private dispute resolution process—faster and often less expensive than court litigation. It’s the primary forum for investor claims against brokerage firms.
Last modified: June 9, 2025
