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Written by 3:53 pm Current Investigations

HPI Real Estate Opportunity Fund IV: Investment Losses

HPI Real Estate Opportunity Fund IV: Investment Losses, featured by top securities fraud attorneys, The White Law Group

The White Law Group is investigating potential securities claims involving HPI Real Estate Opportunity Fund IV.

Have you suffered losses investing in a Hamilton Point Investments offering? If so, The White Law Group may be able to help. Hamilton Point Investments, LLC is a sponsor of alternative investment offerings, such as HPI Real Estate Opportunity Fund IV.

According to DI Wire, the company invests through a series of real estate private equity investment funds and 1031 exchange DST programs that purchase apartment communities in growing markets at below replacement cost. According to a form D filing, the company raised capital from investors in 2015. The total offering amount was purportedly $100,000,000. The sales commissions and fees were reportedly estimated at 10% of the offering price.

Complex Investment Products

Private placement investments are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling alternative investment products, like HPI Real Estate Opportunity Fund, to their clients.

Specifically, The White Law Group is investigating the following Hamilton Point investment offerings among others:

HPI Real Estate Opportunity Fund III
HPI Apartment Opportunity Fund

HPI Miramar SquareHPI
HPI Waterford Landing DST
HPI Villas DST
HPI San Antonio Industrial, LLC
HPI Self Storage Military Fund, LP
HPI Self Storage Tampa 19 Fund, LP
HPI Storage Fund I, LP
HPI Storage Fund III, LP
HPI Storage Fund IV, LP

Despite the risks of investing in this type of alternative investments, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Is a Private Placement Investment Suitable for you? 

Your broker is required to assess your investment objectives, risk tolerance, financial situation, and investment experience before making investment recommendations. This involves understanding your goals, time horizon, liquidity needs, and tolerance for potential losses.

Your broker should also ensure that you are aware of the risks associated with private placements, including limited liquidity, lack of regulatory oversight, and the potential for loss of principal. 

Broker Due Diligence 

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor considering that investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. 

Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim. 

Free Consultation

If you have concerns regarding your investment in HPI Real Estate Opportunity Fund IV and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

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

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.

Tags: , , , , Last modified: March 4, 2024