Investigation of Bluerock’s BR Four Corners Orlando DST
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending BR Four Corners Orlando DST to investors
Bluerock Value Exchange, a national sponsor of syndicated 1031 exchange offerings, is an affiliate of Bluerock Real Estate, L.L.C., a private equity real estate investment firm, according to its website.
The company filed a Form D to raise capital from investors for the offering BR Four Corners Orlando DST in 2016. The total offering amount was purportedly $16,421,134. The type of investment was “Beneficial Interests in a Delaware Statutory Trust,” according to the REG D filing.
While there is a time and place for most investments, DSTs are not appropriate for many investors as they come with a few disadvantages. For example, 1031 DSTs cannot raise new capital once the investment is made leaving investors holding the bag if expensive repairs are needed or other issues arise – like a drop in occupancy or rental income. The investors also have limited control over the property. While the sponsor may welcome feedback from the investors in the DST, they don’t allow any actions to be taken by any one investor.
Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer if an investor wants to sell their interest before the property is sold.
To learn more about 1031 DST investments please see:
1031 Delaware Statutory Trust (DST) Investments Overview
Filing a Complaint against your Brokerage Firm
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.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an?unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
If you are concerned about your investment in the BR Four Corners Orlando DST, 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. The firm works on a contingency fee basis and may be able to represent you in a complaint against your brokerage firm.
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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