Investing in 1031 Delaware Statutory Tuust (DST) real estate investments is a decision that requires careful consideration and due diligence. Not just on the properties you choose to invest in but on the Broker Dealer, Registered Representative and Qualified intermediary (QI) you choose to work with.
Maybe you were referred to a registered representative or a broker dealer by a QI, attorney, or accountant to help you with your 1031 DST exchange. Did the person referring you do a full check on who they are referring you to. In most cases we believe the answer is probably no. We believe it’s a good idea to spend a little time checking out who you are doing business with and investing your hard earned money with, and we are here to help!
At NexTrend we believe investors should take additional steps to protect their financial interests. One valuable tool for this purpose is called “BrokerCheck” (https://brokercheck.finra.org/).This is a free service provided by the Financial Industry Regulatory Authority (FINRA) that regulates broker dealers and registered representatives.
BrokerCheck serves as a comprehensive easy to use website (https://brokercheck.finra.org/) that provides in depth information about registered representative and broker dealers. It provides investors with the information necessary to help verify the professional background and history of individuals and firms involved in the 1031 DST industry.
BrokerCheck will provide you with very important details about your registered representative’s employment history, how long have they been in the securities business (experience), how many brokerage firms have they worked for (do they move from firm to firm), have they been terminated from a broker dealer and if so for what reason (disciplinary history), qualifications (how many security licenses or other licenses and state registrations), their outside business activities (what other businesses are they involved with), history and complaints filed against them and/or the broker dealer that employees them (if any were filed, were they settled or did they go to arbitration/court and did the registered representative pay money towards a settlement or did the broker dealer take responsibility and make any type of payment or both). This is invaluable information that most investors don’t even know is so readily available.
Investors can access the BrokerCheck website anytime online at (https://brokercheck.finra.org/) allowing for quick and easy research on who they are doing business with. By incorporating BrokerCheck into your 1031 DST investing process you are taking a proactive step in protecting your financial interests. You should gain more confidence in your decisions when you have access to information about the individuals and entities handling your 1031 DST investments.
BrokerCheck is simple to use but if you need any assistance getting started, understanding the information being displayed or have any questions on how to use it and what the results mean then please give us a call and we would be happy to go through the information and results with you. Call us at: 972-661-1283 ext. 4