Concerned about your investment in ExchangeRight Net Leased Portfolio 10, DST?
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending ExchangeRight Net Leased Portfolio 10, DST to investors.
ExchangeRight, a real estate investment firm, reportedly provides income funds and 1031-exchangeable investment offerings, according to its website. The company acquires and manages long-term, net-leased assets backed by investment-grade corporations that operate businesses in the retail and healthcare industries.
According to SEC filings, the company filed a Form D to raise capital from investors in 2015 for the offering ExchangeRight Net Leased Portfolio 10, DST. The entity type was purportedly “Business trust” and the total offering amount was purportedly $21,280,000.
While there may be tax advantages to investing in a DST, there are several downside risks. Like other real estate, a DST 1031 is considered an illiquid asset. Though you may be receiving cash flow, you won’t have access to any proceeds until the asset is sold, and the program concludes, which could involve a span of 7-10 years or more. 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.
Further, investors in a DST often have no rights or say so in regards to property operations, and more importantly generally no control over when the property will be sold.
The White Law Group has represented a number of investors over the last few years in DSTs. Unfortunately, unscrupulous financial advisors will push these products to maximize their own commissions. The firm is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk DSTs to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
Free Consultation with a Securities Attorney
If you are concerned about your investment in ExchangeRight Net Leased Portfolio 10, 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.