DCX Springdale DST Securities Investigation
Are you concerned about your investment in DCX Springdale DST? If so, the securities attorneys at The White Law Group may be able to help you file a complaint against the brokerage firm that sold you the investment.
Black Creek Exchange, a sponsor of 1031 exchanges structured through Delaware Statutory Trusts (DSTs), filed a Form D to raise capital from investors for the offering of DCX Springdale DST in 2017. The total offering amount sold was purportedly $7,475,733.
Risks of Investing in 1031 DSTs – DCX Springdale DST
Investing in 1031 Delaware Statutory Trusts (DSTs) can be an alternative avenue for investors engaging in 1031 exchanges, offering the allure of potential monthly income and diversification without the burden of ongoing landlord responsibilities.
However, it’s essential for investors to exercise caution, as 1031 DSTs come with certain drawbacks. One significant limitation is that once the investment is made, DSTs cannot raise new capital, leaving investors vulnerable if unexpected expenses arise, such as costly repairs or declines in occupancy and rental income.
Moreover, investors have minimal control over the property, with the sponsor retaining decision-making authority, despite potentially welcoming input from investors.
Further, 1031 DSTs are characterized by their illiquidity, meaning it can be challenging for investors to find a buyer if they wish to sell their interest before the property is ultimately sold. This lack of liquidity can limit investors’ flexibility and ability to exit their investment when desired.
Given these potential drawbacks, it’s importatn for investors to thoroughly evaluate whether 1031 DSTs align with their investment objectives, risk tolerance, and liquidity needs before committing capital to these vehicles.
Filing a Complaint against your Brokerage Firm
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 1031 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 with a Securities Attorney
If you are concerned about your investment in the DCX Springdale 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. The firm works on a contingency fee basis and may be able to represent you in a complaint against your brokerage firm. Our firm has handled over 700 FINRA arbitration claims for investors.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.
Tags: FINRA arbitration, FINRA attorney, Securities Lawyer Last modified: March 6, 2024
