CAI Investments Coatesville DST: Securities Investigation

Concerned about your investment in CAI Investments Coatesville DST?

Are you concerned about your investment in CAI Investments Coatesville 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.

CAI Investments, real estate development company headquartered in Las Vegas, NV, reportedly invests in distressed real estate based assets in the U.S., according to its website. The company offers Reg D investments through the independent broker-dealer space.

According to a company brochure, this Delaware statutory trust offering is of a state-of-the-art industrial/office distribution facility positioned between Philadelphia and Harrisburg, Pennsylvania.

The company filed a form D to raise capital from investors for the offering CAI Investments Coatesville DST in 2019. The total offering amount was purportedly $18,645,494.

The Risks of Investing in 1031 DSTs – CAI Investments Coatesville DST

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.

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 typically 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 may 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.

Investigating Potential Lawsuits

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

Broker Due Diligence

Brokerage firms have two main duties in recommending investments.  First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.  

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.  

Free Consultation

If you are concerned about your investment in CAI Investments Coatesville 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.