Do not construe the contents and discussion herein as legal, tax or accounting advice. The information contained herein is believed to be accurate, however, no such warranties, representations, or guarantees are provided to that effect, either expressly or implicitly. Further, the information contained herein is intended only to provide a high level overview and not an exhaustive explanation of the rules, regulations, exceptions, etc. generally applicable to a like-kind exchange pursuant to Internal Revenue Code Section 1031. The discussions and examples contained herein are based on law presently in effect and certain proposed Treasury Regulations. Nonetheless, readers should be aware that new administrative, legislative or judicial action could significantly change the information contained herein. Transactions involving Internal Revenue Code Section 1031 are highly complex, and it is strongly recommended that investors seek competent, independent tax and legal counsel prior to initiating, and while performing, such a tax deferred exchange. The information contained herein is neither an offer to sell nor a solicitation of an offer to buy securities.

Securities, such as the DSTs mentioned herein, have not been and will not be registered under the Securities Act of 1933 or applicable state securities laws, nor has the Securities and Exchange Commission or any state regulatory authority passed upon or endorsed the merits of the disclosure herein. In making a decision investors must rely on their own examination of the transaction and its terms, including the merits and risks involved. There can be no guarantee that the methods described herein will suit your individual needs or that the rules governing such methods will not change over time.

General Real Estate Risk – All forms of real estate investing are speculative and involve a high degree of risk. Investors should be able to bear the complete loss of an investment. All real estate is generally subject to the risks of increased and ongoing vacancy, problematic tenants, economic downturns, physical damage or loss, unexpected repairs and maintenance, eminent domain, negative rezoning, blight, environmental damage and liability, and overall valuation fluctuations that may be outside of the owner’s control.

Specific 1031 Exchange Risks – 1031 Exchanges are highly complex and failure to comply with the stringent requirements may result in a complete loss of the desired tax deferral. Investors should carefully consult with independent tax and legal counsel prior to initiating, and while performing, a tax-deferred exchange.

There are numerous section 1031 rules and requirements including, but not limited to: seller cannot receive or control the net sales proceeds, replacement original property must be like-kind to the relinquished property, the replacement property must be identified within 45 days from the sale of the property, the replacement property must be acquired within 180 days from the sale of the original property, and the debt placed or assumed on the replacement property must be equal or greater than the debt encumbering the relinquished property.

Illiquidity – There is no significantly established secondary market for syndicated, fractionalized TIC and DST ownership interests. The transfer of these interests may also be legally restricted. Investors should carefully consider both their ongoing liquidity needs and estate planning goals prior to investing in such an interest.

Limited Diversification – Most offerings are for ownership interests in a single property, and any desired diversification must be achieved with other real estate investments.

No Guarantee of Performance – Bluerock Real Estate does not guarantee ongoing distributions or overall investment performance.

Sponsor-Related Fees – Bluerock Real Estate and its affiliates will collect significant fees related to the acquisition, syndication, ongoing management, and eventual disposition of any real estate offerings. These fees could materially impact the performance of an investment and should be carefully considered prior to any such investment.

Leverage-Related Volatility – The use of leverage in real estate investments may increase volatility and the overall risk of loss.

Under no circumstances should any material at this Site be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any security, investment fund, or real estate or other real asset. The material on this website does not constitute, and may not be used in connection with, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not permitted by law or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. Access to information about any accounts is limited to investors who, among other requirements, qualify as accredited investors within the meaning of the Securities Act of 1933, as amended. The information contained herein is not investment advice. Any specific investments listed or discussed do not represent any or all investments purchased, sold or recommended for advisory clients since inception. One should not assume that all investments are or will be profitable.