Please Read the Following Investment Disclosure

As an investor in our Funds, it is important that you read and fully understand the following disclosure statement:

Income or earnings statements, whether specific estimates or general in scope, refer to potential income only. There is no assurance that your earnings will match the figures or general prospects that we present. Your reliance on our presentation of figures or the potential for income we present is at your own risk. Any income or earnings depicted or generally referred to are NOT to be interpreted as common, typical, expected, or normal for an average investor. A particular result may be exceptional and numerous and sometimes uncontrollable variables may impact results. Our Funds make no guarantees as to your income or earnings of any kind, at any time. There is no assurance that your earnings or income will match any particular results or that you will make any money at all. If you rely upon our examples or figures, you do so at your own risk, and you accept all risk associated with your reliance.

Any claims or representations as to income earnings made on our web sites or in our materials or information are not to be considered as average earnings. Investor testimonials are not representative of most investors. No assurances are made that any prior successes, or past results, as to income and earnings, can indicate your future investment success or results.

Monetary and income results are based on many factors. We have no way of knowing how well you will do, as we do not know you, your background, your investment experience, or your business skills or practices. Therefore, we do not guarantee or imply that you will make any income or earnings at all. If you rely upon our examples or figures, you do so at your own risk, and you accept all risk associated with your reliance.

Businesses operating in and earnings derived from the real property investment sector have many risks, many unknown, and are not suitable for everyone. Making decisions based on any information presented in our funds programs, products, services or on our website, should be done only with the knowledge that you could experience significant losses, or make no money at all. Only risk capital should be used.

We advise you to seek the advice of qualified professionals for your investments and all information, programs, products, and services that we have provided should be independently verified by such own qualified professionals. Check with your accountant, lawyer, or professional advisor, before acting on this investment or any information. We also advise you to conduct thorough due diligence when it comes to making business decisions, our information, programs, products and services should be carefully considered and evaluated before reaching a business decision, or whether to rely on them.

You agree that our funds and their management are not responsible for the success or failure of your business decisions relating to any information presented by us.

Investors should be able and willing to withstand the entire loss of their investment. The equity interests of the funds are speculative in nature. No bank or the FDIC or any other government agency insures any of the securities offered under the funds.

This newsletter and any other communication, other than a private placement memorandum or other offering documents, do not constitute an offer to sell, solicit or make an offer to buy any investment interest or securities. Investors will also have to verify, by acknowledgement, that they have received and have read all investment materials, prior to the completion of any investment.

All marketing and media material has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. We have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the fund assets, the future projected financial performance of the properties, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information presented has been obtained from sources we believe to be reliable; however, we have not verified, and will not verify, any of the information contained herein, nor have we conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

All investments, including real estate, are speculative in nature and involves substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on the information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations.

Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return examples provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results.

Forward Looking Statements:

Various statements contained herein, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of strategies, plans or intentions. We have based these forward-looking statements on our current expectations and assumptions about future events. These assumptions include, among others, our projections and expectations regarding: market trends in the home/apartment rental industry and in the local markets where we operate, our business strengths, our ideal tenant profile, the quality and location of our properties in attractive neighborhoods, our ability to create a cash flow opportunity with attractive current yields and upside from increasing rents and cost efficiencies and our understanding of our competition and general economic, demographic and real estate conditions that may impact our business. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements to conform to actual results or changes in our expectations, unless required by applicable law.

Risks Related to The Real Estate Industry:

An investor’s performance and the value of their properties are subject to general economic conditions and risks associated with our real estate assets.

There are significant expenditures associated with an investment in real estate (such as debt service, real estate taxes, and insurance maintenance costs) that generally do not decline when circumstances reduce the income from the property. Income from and the value of the properties acquired may be adversely affected by the following factors:

• downturns in international, national, regional and local economic conditions (particularly increases in unemployment);
• the attractiveness of the properties acquired to potential tenants and competition from other properties;
• increases in the supply of or decreases in the demand for similar or competing properties in our target markets;
• bankruptcies, financial difficulties or lease defaults by tenants;
• changes in interest rates, availability and terms of debt financing;
• changes in operating costs and expenses;
• changes in, or increased costs of compliance with, governmental laws, rules, regulations and fiscal policies, including changes in tax, real estate, environmental and zoning laws, and our potential liability thereunder;
• our ability to provide adequate maintenance;
• changes in the cost or availability of insurance, including coverage for mold or asbestos;
• environmental conditions or retained liabilities for such conditions;
• tenant turnover;
• the illiquidity of real estate investments generally;
• residents’ perceptions of the safety, convenience and attractiveness of our properties and the neighborhoods where they are acquired;
• the ongoing need for capital improvements, particularly in older properties;
• the ability or unwillingness of residents to pay rent increases;
• civil unrest, acts of God, including earthquakes, floods and other natural disasters, which may result in uninsured losses, and acts of war or terrorism;
• rent control or rent stabilization or other housing laws, which could prevent us from raising rents; and
• increases in property-level maintenance and operating expenses.

For these and other reasons, we make no guarantees as to investor performance.