Investigating Claims involving NREA Estates DST
Are you concerned about your investment in NREA Estates DST? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
NREA is the platform built to manage real estate investments on behalf of NexPoint Advisors, L.P, according to its website. NREA reportedly manages a publicly-traded REIT, NexPoint Residential Trust, Inc. (NYSE: NXRT) and the REIT subsidiaries to NexPoint Strategic Opportunities, a closed-end fund (NYSE: NHF), as well as DST 1031 Exchange and Reg-D offerings.
NexPoint reportedly filed a Form D to raise capital from investors for the offering NREA Estates DST in 2018. The entity type was a Delaware Statutory Trusts and the total offering amount was purportedly $$24,963,221.
Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.
While there is a time and place for most investments, DSTs are not appropriate for many investors as they come with a few disadvantages. For example, 1031 DSTs cannot raise new capital once the investment is made leaving investors holding the bag if expensive repairs are needed or other issues arise – like a drop in occupancy or rental income. The investors also have limited control over the property. While the sponsor may welcome feedback from the investors in the DST, they don’t allow any actions to be taken by any one investor.
Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer if an investor wants to sell their interest before the property is sold.
Investigating Potential Lawsuits
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.
If you are concerned about your?investment in NREA Estates 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.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.
Tags: FINRA arbitration, FINRA attorney, NREA Estates DST, NREA Estates DST complaints, NREA Estates DST help, NREA Estates DST high commissions, NREA Estates DST investigation, NREA Estates DST investors, NREA Estates DST losses, NREA Estates DST recovery options, NREA Estates DST update, securities fraud lawyer Last modified: February 16, 2021