Inspired Senior Living of New Braunfels DST – Reviews, Complaints & Investment Loss Investigation
The White Law Group is still filing securities fraud claims involving Inspired Senior Living of New Braunfels DST, a Delaware Statutory Trust (DST) sponsored by Inspired Healthcare Capital.
Letter to New Braunfels Investors – February 10th, 2026
In a February 10, 2026 letter to investors, Inspired Healthcare Capital, LLC announced that it filed for Chapter 11 bankruptcy protection on February 2, 2026. The company stated that the filing was designed to “preserve and maximize value for all stakeholders” as it evaluates strategic alternatives, which may include a sale of assets, balance sheet deleveraging, or a broader restructuring. IHC also disclosed that it obtained debtor-in-possession (DIP) financing to support ongoing operations during the bankruptcy process.
The letter outlined significant leadership changes, including the replacement of prior senior management with independent managers and the appointment of M. Benjamin Jones as Chief Restructuring Officer. The update further noted that Luke Lee is no longer affiliated with the company. IHC indicated that it intends to preserve potential claims and causes of action and continues to investigate possible claims against alleged “wrongdoers,” developments that could be important for investors considering potential recovery options.
February 2026- Inspired Healthcare Capital Bankruptcy
In February 2026, Inspired Healthcare Capital and more than 160 affiliates filed for Chapter 11 bankruptcy in the Northern District of Texas, reporting estimated liabilities of $1–$10 billion. The filing follows months of suspended distributions, independent management oversight, and SEC scrutiny, and adds further uncertainty for investors regarding asset values and recovery prospects.
January 2026 Update: Inspired Healthcare Capital
In a January 15, 2026 communication to investors and financial advisors, IHC disclosed that independent managers have assumed control of key operating and DST-related entities, a restructuring professional from Ankura Consulting Group has been appointed, and outside restructuring counsel has been retained. As of February 2026, investor distributions remain suspended with no timeline provided for resumption, and no new capital is being raised.
Investor complaints and recovery efforts continue to expand, with many claims focused on alleged misrepresentations, unsuitable recommendations, overconcentration in illiquid private placements, and failures by broker-dealers to supervise financial advisors who recommended IHC investments.
(For a comprehensive overview of litigation activity, restructuring developments, and investor recovery options, see our main Inspired Healthcare Capital Lawsuit Update.)
August 2025 — Distributions Remain Suspended
In July 2025, Inspired Healthcare Capital announced that it was suspending new investment offerings and halting investor distributions, citing an ongoing U.S. Securities and Exchange Commission (SEC) regulatory review. Around the same time, the company shuttered its internal management arm, Volante Senior Living, following the resignation of its CEO, and transitioned operations of its properties to third-party managers.
These developments have raised serious concerns among investors — especially those who relied on these investments for income.
What is Inspired Senior Living of New Braunfels DST?
Inspired Senior Living of New Braunfels DST is a Regulation D private placement structured to pool investor funds for a senior housing real estate project in New Braunfels, Texas. According to a 2024 Form D filing, the sponsor sought to raise $43.7 million for the project.
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Total Offering Amount: $43,708,696
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Minimum Investment: $50,000
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Estimated Sales Commissions: $3,933,783
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Sponsor Compensation: $2,847,544 (including bridge financing fees)
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Broker-Dealer: Emerson Equity LLC
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Exemption: Rule 506(c) of Regulation D
DSTs like this one are commonly marketed for 1031 exchange investors seeking to defer capital gains taxes. However, these investments are high-risk, illiquid, and unsuitable for many investors.
Why Are Investors Filing Complaints?
The White Law Group has spoken with investors who allege that:
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Distributions were suspended without warning, disrupting retirement income plans.
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Risks were not fully disclosed, including high commissions and conflicts of interest.
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Brokers failed to perform adequate due diligence on the investment.
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The sponsor’s broader financial challenges were not communicated.
In addition, the recent SEC review, management shake-up, and operational transfer to outside companies have raised questions about the future stability and valuation of the New Braunfels property.
Risks of DST Investments Like Inspired Senior Living of New Braunfels
Illiquidity
DST interests generally cannot be sold prior to the sale of the underlying property, leaving investors stuck in the investment for years.
High Fees & Commissions
Upfront sales commissions (often 7–10%) and offering costs reduce the amount actually invested in the property.
Lack of Control
Investors have no say in property management or the timing of a sale.
Sponsor Conflicts
The sponsor may earn fees regardless of the investment’s performance.
Broker Duties & Potential Misconduct
Financial advisors who recommended Inspired Senior Living of New Braunfels DST were required to:
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Ensure suitability for the investor’s risk tolerance and objectives.
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Disclose all material risks and conflicts of interest.
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Perform due diligence on the investment’s structure and sponsor.
Failure to meet these duties could make the brokerage firm liable for investor losses.
How to Recover Investment Losses
Investors cannot typically file a traditional lawsuit against the DST itself. Instead, recovery is often pursued through FINRA arbitration — a process designed for resolving disputes between investors and brokerage firms.
The White Law Group has recovered millions of dollars for investors through FINRA arbitration involving unsuitable DST recommendations.
Free Case Evaluation
If you invested in Inspired Senior Living of New Braunfels DST and suffered losses, contact The White Law Group at 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.
Frequently Asked Questions
1. What is the status of Inspired Senior Living of New Braunfels DST in 2025?
The sponsor, Inspired Healthcare Capital, suspended new offerings and distributions in July 2025 during an SEC review and transferred operations to third-party managers.
2. Why might this DST be unsuitable for me?
DSTs are high-risk, illiquid, and fee-heavy investments that can be unsuitable for retirees or investors who need access to capital.
3. What kind of complaints have been reported?
Investors have reported suspended distributions, lack of risk disclosure, and overconcentration in illiquid real estate products.
4. Can I sue to recover my losses?
Recovery is typically sought through FINRA arbitration, not a traditional lawsuit.
5. How do I know if I have a claim?
If your broker failed to disclose risks, misrepresented the investment, or made an unsuitable recommendation, you may have a viable claim.
Last modified: February 17, 2026
