Concerned About Your Investment in Cove Net Lease Income Fund 18, LLC?
If you invested in Cove Net Lease Income Fund 18, LLC, you may be able to recover financial losses. The White Law Group is currently investigating whether brokerage firms improperly recommended this high-risk investment to retail investors.
Overview of Cove Net Lease Income Fund 18, LLC
Cove Net Lease Income Fund 18, LLC is a Delaware limited liability company formed in 2020 to acquire commercial real estate properties under a net lease structure. According to a Form D filed with the Securities and Exchange Commission, the offering was initiated under Rule 506(c) of Regulation D.
The sponsor of the investment is Cove Capital Investments, LLC, a sponsor of DST and net lease offerings. Key details from the filing include:
- Offering Amount: $50,000,000 (may increase to $100,000,000)
- Total Sold: $10,232,400
- Minimum Investment: $1,000
- Estimated Sales Commissions: $2,000,000
- Selling Broker: FNEX Capital, LLC (CRD#: 16316)
- Number of Investors: 68
- Estimated Proceeds to Related Parties: $6,000,000
“The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete. The reader should not assume that the information is accurate and complete.”
Risks of Private Real Estate Investments Like Cove Net Lease Income Fund 18
Though net lease investments may be marketed as stable and income-generating, they also carry significant risks, particularly when structured as private placements. These risks may include:
- Illiquidity – No secondary market for resale
- High Commissions – Fees and expenses may erode investor returns
- Limited Transparency – Less regulatory oversight compared to publicly traded REITs
- Market & Tenant Risk – Reliance on commercial tenants for income
- Unsuitability for Conservative Investors – Not appropriate for all financial goals
Broker Duties and FINRA Rules
Under FINRA Rule 2111, brokers are required to perform adequate due diligence and ensure all investment recommendations are suitable for each client. This includes understanding the investor’s risk tolerance, financial condition, investment experience, and objectives.
If your financial advisor failed to disclose the risks or misrepresented the safety or income you may be eligible for FINRA arbitration to recover damages.
Legal Options for Investors
Investors may be able to pursue compensation through:
- Individual FINRA Arbitration – The most common recovery method for private placement losses
- Class Action – May apply if widespread misconduct occurred, though recoveries may be limited
The White Law Group has recovered millions of dollars for investors in unsuitable alternative investments such as net lease funds and private placement offerings.
Free Case Evaluation – Contact The White Law Group
If you suffered losses please contact our securities fraud attorneys for a free consultation to determine your legal options.
Call us at 888-637-5510
Visit whitesecuritieslaw.com
The White Law Group is a national securities arbitration firm with offices in Chicago, IL and Seattle, WA, representing investors across the country.
Last modified: July 11, 2025
