Stephen Holt (CRD#: 5900842), a registered representative with Lighthouse Capital Group, LLC (CRD#: 169135) in Pasadena, California, is currently involved in a pending customer dispute over a Delaware Statutory Trust (DST), according to his BrokerCheck record accessed on March 4, 2020.
On December 23, 2019, a client filed a customer complaint against Stephen Holt, alleging that he conducted limited due diligence regarding a Delaware Statutory Trust (2015) purchased in 2015. The client is seeking $168,370 in damages.
What is a Delaware Statutory Trust (DST)? Brokers often tout Delaware Statutory Trusts (DSTs) as a passive real estate investment opportunity. Instead of dealing with tenants and the headaches of managing a property, investors put up money and let someone else do the grunt work while reaping the other benefits of being a landlord (namely, passive income). A Delaware Statutory Trust owns a property directly, and then investors take a partial undivided ownership of the trust. There can be up to 35 investors, known as Tenants-in-Common. The problem? You do not know your partners, and thus don’t know if they have to capital to sustain the investment. The structure of a DST makes it easier for a bank to foreclose on a property. While a DST is a tax-deferred investment, high fees mean that you may be better off paying the fees. While a DST might initially look like a great passive investment opportunity because brokers market them as such, prospective investors should carefully consider whether a DST is right for them.
Stephen Holt is licensed to sell securities in California, North Dakota, and Washington. He has passed the Series 63 – Uniform Securities Agent State Law Examination, the SIE – Securities Industry Essentials Examination, and the Series 7 – General Securities Representative Examination.
In addition to his current role at Lighthouse Capital Group, LLC (CRD#: 169135), Stephen Holt has also worked for:
- Sandlapper Securities, LLC (CRD#: 137906)
- NelsonReid, Inc. (CRD#: 45503)
- Steven L. Falk & Associates Inc. (CRD#: 14297)
If Stephen Holt was your broker and you have concerns about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email firstname.lastname@example.org for your free case consultation.