Concerned about your investment in Vinebrook Homes Trust, Inc.?
The White Law Group is investigating securities claims involving the liability that broker dealers may have for improperly recommending non-traded REITs such as Vinebrook Homes Trust to investors.
NexPoint, based in Dallas, Texas, provides several types of real estate investment offerings, including publicly traded real estate investment trusts (REITs), Regulation D private placements, 1031 exchanges, closed-end funds, interval funds, and a business development company (BDC).
The company filed a form D to raise capital from investors for the offering Vinebrook Homes Trust Inc., a non-traded REIT. The total offering amount sold was $118,457,157.
Investigating Potential Securities Claims
Many investors are not fully aware of the problems and risks associated with illiquid, high risk, non-traded REITs before purchasing them.
Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling them– as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.
Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
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.
If you are concerned about investment in Vinebrook Homes Trust, Inc. and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.