AZ Romulus MI Investors DST Investors may have Claims
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended AZ Romulus MI Investors DST to investors.
DSTs, known as Delaware Statutory Trusts, present an alternative avenue for 1031 exchange investors in search of replacement properties. They supposedly offer the potential for monthly income and diversification, all without the ongoing responsibilities of a landlord.
AZ Romulus MI Investors DST – Suitable for you?
According to SEC filings, AZ Romulus MI Investors DST, sponsored by Net Lease Capital Advisors, filed a Form D to raise capital from investors in 2019. The total offering amount was purportedly $20,817,461, according to the Reg D filing.
DSTs may not be suitable to many investors due to several drawbacks. For instance, once the investment is made, 1031 DSTs cannot secure new capital, leaving investors responsible if costly repairs or other issues, such as declining occupancy or rental income, emerge. Also, investors have limited control over the property; while the sponsor may be open to feedback, individual investors cannot take independent actions. Additionally, 1031 DSTs lack liquidity, making it challenging to find a buyer should an investor wish to sell their interest before the property is sold.
How to Recover Investment Losses
The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably invested its clients in a 1031 DST investment.
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.
Brokerage firms are required to engage in broker due diligence to ensure they recommend and sell investment products suitable for their clients. This safeguarding process aims to protect both the brokerage firm and its clients by ensuring the investments align with the client’s investment objectives, risk tolerance, and financial situation.
The Financial Industry Regulatory Authority (FINRA) offers an arbitration platform enabling investors to resolve disputes if a broker or brokerage firm makes unsuitable investment recommendations or inadequately discloses associated risks. In a FINRA arbitration claim, brokers or firms might be held accountable for investment losses.
If you are concerned about your?investment in AZ Romulus MI Investors DST, you may be able to file a FINRA claim. Please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://whitesecuritieslaw.com.
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