Investor Alert: Grandway REIT Holding, Inc. – Regulation D Offering Investigation

Have you suffered investment losses in?Grandway REIT Holding, Inc.? The White Law Group is currently investigating potential securities claims involving the firm’s Regulation D private placement offering, filed with the SEC in 2022.

What is Grandway REIT Holding, Inc.?

Grandway REIT Holding, Inc. is a real estate investment trust incorporated in Maryland and based in Pasadena, California. According to its?Form D filing, the company launched an equity offering under Rule 506(b) of Regulation D in December 2022, raising $33,000 from 33 investors. The minimum investment was listed at $1,000.

The securities were sold through H & L Equities, LLC, with commissions totaling approximately 5% of the capital raised.

Understanding the Risks of Reg D Private Placements

Regulation D offerings are often promoted as exclusive, income-generating alternatives to traditional investments. However, these offerings come with significant risks and are not subject to the same regulatory scrutiny as publicly traded securities.

Key concerns include:

• Illiquidity: No secondary market means investors may be stuck in the offering for years.
• High Fees: Commissions and other selling expenses can reduce investor returns.
• Lack of Transparency: Limited financial disclosures can obscure true asset performance.
• Sponsor Conflicts: Sponsor-related payments may pose a conflict of interest.

These factors make Reg D investments especially risky for retirees or conservative investors who may require more liquidity and transparency.

Did Your Broker Misrepresent the Investment?

Brokerage firms like H & L Equities that recommend private placements are required to conduct thorough due diligence and ensure the investment is suitable for the client’s financial situation. If your broker failed to:

• Disclose the high risks or fees,
• Investigate the sponsor’s track record,
• Evaluate your investment profile before making the recommendation,

…you may have grounds for a recovery claim.

FINRA Arbitration vs. Class Action Lawsuits

Most disputes related to Reg D offerings are resolved through FINRA arbitration, not class actions. Why?

• Faster resolutions
• Lower legal costs
• Individualized awards tailored to your losses

If your brokerage agreement includes a FINRA arbitration clause—as most do—you may be required to arbitrate any claim for recovery.

Free Case Review – Grandway REIT Investment Losses

If you are concerned about your investment in Grandway REIT Holding, Inc., you may be eligible to recover your losses. The White Law Group has handled over 800 FINRA arbitration cases nationwide and focuses exclusively on securities fraud and investor protection.

To speak with a securities attorney, call 888-637-5510 or visit www.whitesecuritieslaw.com.

Frequently Asked Questions

1. What is Grandway REIT Holding, Inc.?
It’s a Maryland-based REIT that filed a private placement under Regulation D in 2022. The firm raised $33,000 from investors in a non-traded offering.

2. Can I resell this investment on a public exchange?
No. Reg D investments like this are highly illiquid and generally not traded on public markets.

3. What if I wasn’t told about the risks or fees?
If your broker failed to adequately disclose risks or recommend a suitable investment, you may have a claim for recovery through FINRA arbitration.