BV Design Multifamily DST: Investigating Claims

Securities Investigation: BV Design Multifamily DST

Are you concerned about your investment in BV Design Multifamily DST? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.

BV Design Multifamily DST reportedly filed a form D to raise capital from investors in 2022, according to a filing with the SEC.   The total offering amount was purportedly $29,583,000.

Risk Factors related to a 1031 Exchange 

Property Value Loss – All real estate investments have the potential to lose value over time.

Illiquid Investments – 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.

Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions.

Tax Status Changes – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities.

Fees/Expenses – Investors’ returns may be affected by the costs associated with the transaction. and may outweigh the tax benefits.

How to Recover Investment Losses involving a 1031 DST

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk 1031 DST investments to investors.

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.

Broker due diligence is a process undertaken by brokerage firms to ensure they are recommending and selling investment products appropriate for their clients. This process protects the interests of the brokerage firm and its clients by ensuring that the investments offered are suitable for the client’s investment objectives, risk tolerance, and financial situation.

Fortunately, the Financial Industry Regulatory Authority (FINRA) provides 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. They could be found liable for investment losses in a FINRA arbitration claim.

Free Consultation

If you are concerned about your investment in BV Design Multifamily DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on 1031 DST investments please see: 1031 Delaware Statutory Trust (DST) Investments Overview

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.