Did your broker recommend investing in Croatan North Oaks DST?
Are you concerned about your investment in Croatan North Oaks DST? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Croatan Investments, a multifamily investment manager for private wealth, institutional, and retail capital, reportedly filed a form D to raise capital from investors for the offering Croatan North Oaks DST in 2019. The total offering amount sold was purportedly $2,000,000.
The company reportedly raised $12.3 million to acquire North Oaks Landing, a 200-unit, multifamily community located in Raleigh, North Carolina.
DSTs: Illiquid Investments
DSTs are not appropriate for all investors, as they come with a few disadvantages, compared to owning a property outright. 1031 DSTs typically cannot raise new capital, leaving investors holding the bag if expensive repairs are needed. The investors may have no control over the property, or the ability to make decisions about the property. While the sponsor may welcome feedback from the investor, they don’t typically allow any actions to be taken by said investor.
Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer when the investor is ready to sell.
Help for Investors
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk investments to investors.
Despite the risks of investing in DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
Free Consultation
If you are concerned about your investment in Croatan North Oaks DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
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