Investigating Potential Claims involving CX Liberty Mill , DST
Are you worried about your investment in CX Liberty Mill DST? If so, the securities attorneys at The White Law Group are here to assist you. We can take action by filing a FINRA Arbitration claim against the brokerage firm responsible for selling you this investment.
CX Liberty Mill DST of Tampa, Florida reportedly filed a form D to raise capital from investors in 2019, according to a filing with the SEC. The total offering amount sold was purportedly $65,885,176 according to the Reg D Filing.
1031 DST Investment Risks
Delaware Statutory Trusts (DSTs) present an alternative for 1031 exchange investors seeking replacement properties, with promises of potential monthly income and diversification without the burden of landlord duties. However, it is important to recognize the risks associated with such investments.
One prominent risk factor to consider is the possibility of property value loss. Like any real estate investment, there is always the potential for the value of the property to decline over time, impacting your investment’s overall worth.
Additionally, DSTs are considered illiquid investments. They are typically offered through private placement offerings and lack a secondary market, meaning that you might encounter difficulties selling or trading your investment if the need arises.
Another risk is the reduction or elimination of monthly distributions. Just like any real estate investment, if the property experiences unexpected vacancies or substantial damage, it may lead to a suspension of cash flow distributions, affecting your expected returns.
Tax status changes are also critical to consider. The income stream and depreciation schedule of your investment property can influence your income bracket and tax status. An unfavorable tax ruling could eliminate the deferral of capital gains, resulting in immediate tax liabilities.
Fees and expenses associated with DSTs can eat into your returns, potentially outweighing the tax benefits you were hoping to gain from this investment.
Is a 1031 DST Investment Suitable for you?
It is essential to highlight that brokerage firms often push DST investments due to the high commissions associated with their sale and creation, despite the risks involved. If you believe that you have been recommended a high-risk investment unsuitably or not adequately informed about the risks, you have the option to resolve disputes through FINRA arbitration.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to seek recourse when brokerage firms fail to disclose the risks associated with an investment properly. In such cases, the broker or brokerage firm may be held liable for any investment losses you incur.
If you are concerned about your investment CX Liberty Mill DST, we encourage you to contact The White Law Group for a free consultation at 888-637-5510. Our national securities fraud, securities arbitration, and investor protection law firm is ready to assist you in understanding your rights and potential courses of action.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
Remember, at The White Law Group, we are dedicated to protecting investors’ interests and seeking justice for those who may have suffered investment losses. Visit our website at https://whitesecuritieslaw.com/ to learn more about our firm and the representation we provide for investors in FINRA arbitration claims.