We started LEX with a mission to empower wealth creation by solving real estate’s access and liquidity problems. We’re grateful for everyone who invested with LEX or took interest in our approach to real estate investing.
Unfortunately, the LEX brokerage platform shut down due to financial constraints on February 22, 2023.
LEX does not directly hold any customer deposits. All cash deposits and securities associated with customer accounts are held at Apex Clearing.
For customers, details on how to access and transfer your cash and securities are below.
If you hadn’t already transferred out all of your assets by February 22, 2023, you’ll automatically receive an email from Apex with instructions to access your account via their portal. Scroll down for instructions to create Apex Online credentials.
If you are still holding an account at Apex after April 25, 2023 (60 days following February 22, 2023), Apex will begin charging a $15/month account maintenance fee.
TESLU and GWGYU are independent companies, not owned by LEX. Each of these shares still represents a unit of a publicly traded partnership that has a direct equity ownership in the underlying real estate building.
However, one function of LEX's business is to provide third-party support to these issuers to enable them to comply with their SEC reporting requirements. The issuers may in accordance with SEC regulations choose to withdraw from their respective reporting requirements, and consequently, prohibit secondary trading in their securities. In this case, liquidity will be severely impacted. Any shares will likely lose their “publicly traded partnership” status, and take on the character of more traditional private, illiquid real estate partnership interests.
Holders of TESLU and GWGYU units will continue to receive the benefits afforded to them under the corporate governance documents, including the right to receive pro rata share of any distributions, both in the case of cashflow-driven distributions or in an outright sale of the underlying asset.
To transfer your account with any open position(s) and cash to a different brokerage firm, you will need to initiate an Outgoing ACATS Transfer with the receiving firm.
Simply, an ACATS transfer seamlessly allows you to move all cash and securities in your current account to a new account at a different brokerage firm.
First, you'll need to open a like-account at the brokerage firm of your choice that you'd like to move to, if you don’t already have one. We suggest you confirm that the firm supports “OTC Securities'' like TESLU and GWYGU. Once the account is open, contact your brokerage firm and indicate that you want to effect an ACATS Transfer – they will understand this request and can advise on next steps. When you successfully submit an ACATS with your receiving firm, they will process it for you, kicking off the transfer process. It's important to note that ACATS Transfers can take 7-10 business days to complete.
ACATS Transfers requests initiate from the receiving firm and are subject to a $75 Outgoing ACATS Transfer Fee charged by Apex Clearing Corporation. As a result, your account must have $75 or more in available cash to facilitate the transfer.
When asked to provide the details of the transfer, provide:
Transferring Firm: Apex Clearing Corporation (DTC # 0158)
Account Number: 3LX#####