Risk Factors

This website is neither an offer to sell nor a solicitation of an offer to buy securities described herein. Any offering is made only in conjunction with the prospectus or private placement memorandum (PPM). As such, a current prospectus or private placement memorandum is made available to you in connection with each of the offerings, if you qualify according the applicable state and firm guidelines. You should read the offering documents in order to understand fully all the implications and risks of each offering of securities to which it relates. An investment should only be made after careful review of the prospectus or PPM. All information contained in this material is qualified in its entirety by the terms of the current prospectus or PPM. The achievement of goals is not guaranteed. For more complete information about investing in each offering, including risks, charges and expenses, refer to the prospectus or PPM. Some of the risk factors associated with an investment in non-traded REITs or other direct investments include, but are not limited to:

(1) The amount of the distributions paid may decrease at any time. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment;

(2) In the beginning, the investments are “blind pool” offerings because they may not own any properties and may not have identified any properties to acquire.

(3) Many offerings are dependent on an advisor to select the investments and conduct the operations, and adverse changes in the financial condition of the advisor or the relationship with the advisor could adversely affect the offering,

(4) No public market exists for the shares of common stock, which are illiquid, nor may a public market ever exist;

(5) There may be substantial conflicts among the interests of the investors, the company’s interests and the interests of the advisor, sponsor, dealer manager and the respective affiliates regarding compensation, investment opportunities and management resources,

(6) The investment objectives and strategies may be changed without stockholder consent;

(7) REITs may be obligated to pay substantial fees to the advisor, which may result in the advisor recommending riskier investments;

(8) The offerings may incur substantial debt, which could hinder the ability to pay distributions to the stockholders or could decrease the value of the investment if income on, or the value of, the property securing the debt falls;

(9) The organizational documents may permit the sponsor to pay distributions from any source, including proceeds from the respective offering and financings to fund distributions until there is sufficient cash flow. There are no established limits on the amounts of such net proceeds and borrowings that may be used. Any of the distributions may reduce the amount of capital ultimately available to invest in properties and other permitted investments and negatively impact the value of the investment;

(10) The failure to qualify or remain qualified as a REIT would result in higher taxes, which may adversely affect the operations, which would reduce the amount of income available for distribution and would limit the ability to make distributions to the stockholders;

(11) There are limitations on ownership and transferability of the shares;

(12) The management of multiple investment offerings by the executive officers and officers of the advisor(s) may significantly reduce the amount of time spent on activities related to each offering and cause other conflicts of interest, which may cause operating results to suffer;

(13) REITs will compete for investors with other programs of the sponsor(s).

(14) The risk of investing in foreign securities:  Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and less stringent investor protection and disclosure standards in some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently from the U.S. market.

(15) Concentration risk in illiquid investments:  Concentration risk can amplify losses that may occur from having a large portion of your investment allocation in any one particular investment, asset class or market segment relative to your overall portfolio.  Diversification is always recommended.  Illiquid investments may be difficult to sell quickly should you need to access cash in a timely or cost efficient manner.  As well, surrender charges and penalties often apply if you attempt to sell before a certain period of time. 

(16) Distributions payments are not guaranteed and may include return of principal, which may lower the overall return of the investment.

The specific risks of each investment offering should be reviewed in the applicable offering documents.

BDC Disclosures

An investment in a business development corporation involves a high degree of risk. You should purchase securities in BDC companies only if you can afford a complete loss of your investment. The amount of any distributions paid is uncertain. Distributions may exceed earnings.  Therefore, portions of the distributions may represent a return of capital, which will lower a stockholder’s tax basis and reduce the amount of funds for investment in targeted assets. BDCs can be speculative investments because of the types of investments they make and involve significant risk. The risks associated with purchasing BDC securities are important considerations in making a purchase decision. Such risks include, but are not limited to portfolio company credit and investment risk, leverage risk, market and valuation risk, price volatility risk, liquidity risk, capital markets risk, interest rate risk, dependence on key personnel, and structural and regulatory risk. Market price of securities issued by BDCs may fluctuate significantly. Such volatility may be affected by numerous factors, primarily due to the nature of a BDC’s investments and the portfolio companies in which it invests — but some of the volatility may be beyond the control of the BDC.  BDCs run the risk of over-leveraging their relatively illiquid portfolios.

Accredited Investor Definition – For Accredited Investors Only

In the United States, for an individual to be considered an accredited investor, they must have a net worth of at least one million US dollars, not including the value of their primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with their spouse if married) and have the expectation to make the same amount this year.  Source: U.S. Securities and Exchange Commission / Accredited Investors

Contact us today for a free, no-obligation consultation: