Moody ELM AL North Austin DST: Investor Risk Investigation

Moody ELM AL North Austin DST – Investor Risk Investigation

The White Law Group is investigating potential securities claims involving Moody ELM AL North Austin DST, a Delaware statutory trust formed in 2022 to provide investment opportunities in real estate through a private placement offering.

According to a Form D filed with the SEC, the offering relies on Rule 506(b) of Regulation D and accepts a minimum investment of $25,000. The DST is being offered through various broker-dealers nationwide, including Moody Securities, LLC, Emerson Equity LLC, Centaurus Financial, Concorde Investment Services, Arkadios Capital, Aurora Securities, Wealthforge Securities, DAI Securities, Crown Capital Securities, Great Point Capital, Harbour Investments, and others.

While DSTs (Delaware Statutory Trusts) are often marketed as 1031 exchange vehicles offering potential tax deferral and passive income, they are high-risk, illiquid investments that may not be suitable for many retail investors.

Risks of Investing in DSTs

DSTs like Moody ELM AL North Austin DST carry a number of risks, including:

• Illiquidity – Investors generally cannot sell DST interests on a secondary market.

• High Commissions – Broker-dealers often earn 7–10% in selling fees, creating potential conflicts of interest.

• Tenant and Market Risk – If the underlying property loses tenants or declines in value, investors may suffer losses.

• Concentration Risk – Many DSTs are tied to a single property or sector, increasing exposure to localized downturns.

• Lack of Transparency – Private placement offerings are exempt from SEC registration, meaning less public information is available to investors.

These risks may make DSTs unsuitable for conservative investors or those seeking liquidity and preservation of capital.

Potential Claims Against Brokerage Firms

Brokerage firms that sell DSTs have a duty to perform adequate due diligence and to ensure that the investment is suitable for the investor’s age, net worth, risk tolerance, and investment objectives.

If your broker recommended Moody ELM AL North Austin DST without fully explaining the risks, you may be able to pursue a FINRA arbitration claim to recover losses. FINRA arbitration is a private, faster alternative to litigation and is the primary forum for resolving disputes between investors and brokerage firms.

Unlike class actions, which typically provide smaller recoveries distributed among large groups, FINRA arbitration allows investors to pursue individual claims tailored to their unique financial situation.

Frequently Asked Questions

1. What is Moody ELM AL North Austin DST?
It is a Delaware statutory trust sponsored by Moody National, designed to provide passive real estate investment opportunities, often used in 1031 exchange transactions.

2. Are DSTs like Moody ELM AL North Austin DST safe investments?
DSTs are high-risk, speculative investments. They may offer tax deferral benefits, but they lack liquidity, often pay high upfront commissions, and may expose investors to significant losses.

3. How can I recover losses from a DST investment?
If your financial advisor or broker recommended the investment improperly, you may be able to recover losses through a FINRA arbitration claim against the brokerage firm.

The White Law Group’s Investigation

The White Law Group is currently investigating potential claims involving sales of Moody ELM AL North Austin DST by broker-dealers nationwide. If you invested and are concerned about your losses, you may be able to recover damages.

For a free consultation, please contact The White Law Group at (888) 637-5510.