Did your broker recommend investing in Vineyard Austin DST? 

The White Law Group is investigating potential securities claims involving brokerage firms who may have improperly recommended Vineyard Austin DST to investors.  

Valeo Groupe Americas is an affiliate of Valeo Groupe, which offers multinational interests in both senior and student niche housing markets, according to its website. 

The company reportedly filed a form D in 2020 to raise capital from investors for the offering Vineyard Austin DST. The total offering amount was purportedly $11,600,000. 

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. 

Further, 1031 DSTs are illiquid, and it can often be difficult to find a buyer when the investor is ready to sell. 

For more information on the risks of 1031 DST investments please see:  

 1031 Delaware Statutory Trust (DST) Investments Overview 

FINRA Lawsuits to Recover Investment Losses 

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 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 Vineyard Austin 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. 

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.