Concerned about your investment in LSC King City, DST?
Are you concerned about your investment in LSC King City, 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.
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. LSC King Street, DST of Tampa, Florida reportedly filed a form D to raise capital from investors, according to a filing with the SEC. The total offering amount was purportedly $16,360,000.
Risk Factors related to a 1031 Exchange
Property Value Loss – All real estate investments have the potential to lose value over time.
Illiquid Investments – 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions.
Tax Status Changes – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities.
Fees/Expenses – Investors’ returns may be affected by the costs associated with the transaction. and may outweigh the tax benefits.
Investigation involving 1031 DST Offerings – LSC King City DST
The White Law Group is investigating the potential liability of FINRA registered brokerage firms regarding their recommendations of high-risk 1031 DST investments to investors. These investments are are often endorsed by brokerage firms, due to the attractive high commissions they receive for selling these investments.
Broker Due Diligence: Are your Investments Suitable for you?
Brokerage firms are required to perform due diligence on any investment before recommending it to investors. If your broker fails to perform due diligence and you suffer losses, the brokerage firm may be held liable.
Fortunately, the Financial Industry Regulatory Authority (FINRA) provides 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.
If you are concerned about your investment in LSC King City, DST please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities law firm specializing in cases of securities fraud, securities arbitration, investor protection, and securities regulation/compliance. We help investors pursuing claims against their financial advisor or brokerage firm in all 50 states. Since its establishment in 2010, the firm has successfully managed more than 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
Last modified: September 5, 2024
