Inspired Senior Living of San Marcos DST: Investment Loss Investigation

The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended Inspired Senior Living of San Marcos DST to investors.

About the Offering – Inspired Senior Living of San Marcos DST

Sponsored by Inspired Healthcare Capital, this private placement offering was created as a Delaware Statutory Trust (DST) in 2023 to acquire and operate senior housing real estate. According to a Form D filed with the SEC, the total offering amount was $30,992,485.

The DST was structured to raise capital from accredited investors nationwide, and it listed a minimum investment of $50,000. Estimated sales commissions and fees were nearly 9%, including a Dealer Manager Fee, Broker-Dealer Allowance, Wholesaling Fee, and other selling costs.

Proceeds from the offering reportedly included $805,000 in acquisition fees and more than $1.38 million in bridge financing costs paid to affiliated parties. The sponsor also received nearly $465,000 for organizational and marketing expenses.

Understanding the Risks of DST Investments

Although DSTs may offer tax deferral benefits under IRC Section 1031 and passive income opportunities, they are often illiquid and high-risk. Investors are usually unable to sell or exit early. If property performance declines or tenants default, the trust’s income distributions could be reduced or eliminated altogether.

Because these investments are generally available only to accredited investors, they often bypass the scrutiny and protections of public markets. Inadequate disclosures or unsuitable recommendations by financial professionals may result in significant investor losses.

Were You Sold an Unsuitable DST Investment?

Broker-dealers have an obligation to conduct adequate due diligence and ensure that investments they recommend are suitable based on the investor’s objectives, risk tolerance, and financial profile. Under the FINRA Arbitration process, investors may pursue claims against firms for failing to meet their obligations.

If your financial advisor recommended Inspired Senior Living of San Marcos DST and you experienced losses, you may have a claim for recovery.

Why Choose Individual Arbitration Over a Class Action?

While a class action groups together investors with smaller claims, individual FINRA arbitration may offer a better path for investors with substantial losses. With a focused legal strategy, investors could pursue full recovery of damages tailored to their specific circumstances.

Contact a Securities Fraud Attorney

The White Law Group is a national law firm that represents investors in claims against brokerage firms for unsuitable investment recommendations and failure to supervise. With offices in Chicago, Illinois, and Seattle, Washington, we represent clients across the U.S. in FINRA arbitration claims.

Visit www.whitesecuritieslaw.com to learn more or call 888-637-5510 for a free consultation if you are concerned about your investment in Inspired Senior Living of San Marcos DST.

Frequently Asked Questions – Inspired Senior Living of San Marcos

1. What is Inspired Senior Living of San Marcos DST?

It’s a 2023 private placement investment offered through a Delaware Statutory Trust, sponsored by Inspired Healthcare Capital, focused on senior housing assets in the U.S.

2. Why are DST investments risky?

DSTs are typically illiquid and come with concentration and performance risks. Market changes, tenant issues, or poor management can cause the investment to lose value or stop generating income.

3. Can I recover my losses through FINRA?

Yes, if your broker unsuitably recommended the investment or failed to perform adequate due diligence, you may be able to pursue a claim through FINRA Arbitration.