Risk Factors

Forward-Looking Statements

This website includes forward-looking statements that can be identified by the use of words such as “will,” “may,” “should,” or other comparable terminology. Statements concerning future performance, cash flows and any other guidance on present or future periods constitute forward-looking statements. Forward-looking statements involve significant risks and uncertainties and you should not unduly rely on these statements. You should be aware that a number of important factors could cause our actual results to differ materially from those in these forward-looking statements including the risks summarized below and the risks described in our filing with the Securities and Exchange Commission. The statements made herein are as of the date hereof and we undertake no obligation to update these statements except as may be required by applicable securities laws.

Risks to Consider Before Investing

We are an “emerging growth company” under the federal securities laws and will be subject to reduced public company reporting requirements. Investing in our common stock is speculative and involves a high degree of risk.

You should purchase these securities only if you can afford a complete loss of your investment. See “Risk Factors” in the company’s prospectus to read about the more significant risks you should consider before buying shares of our common stock. These risks include the following:

  • We have no operating history and no significant assets.
  • Because this is a “blind pool” offering, you will not be able to evaluate our investments prior to purchasing our shares.
  • This is a “best efforts” offering, and if we are unable to raise substantial funds then we may not be able to diversify our investments.
  • We depend upon our advisor and its affiliates to conduct our operations.
  • We are an “Emerging Growth Company” under the federal securities laws and will be subject to reduced public company reporting requirements. Investing in our common stock is speculative and involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment.
  • See “Risk Factors” in the company’s prospectus to read about the more significant risks you should consider before buying shares of our common stock.
  • We may not be able to make distributions on a monthly basis. We currently pay distributions from sources other than cash flow from operations and may continue to pay from sources other than cash flow from operations, which includes the sale of assets, borrowings or offering proceeds. We have no limits on the amounts we may pay from such sources. If we pay distributions from sources other than our cash flow from operations, the funds available to us for investments would be reduced and your share value may be diluted. Distributions are not guaranteed.
  • We may incur substantial debt, which will increase our risk and may reduce our distributions.
  • Failure to qualify as a REIT would adversely affect our ability to make distributions to our stockholders.
  • Our business strategy involves substantial risk as many of our investments are expected to be in real estate markets that have suffered significant declines in values over the last several years and we may seek to acquire loans made to higher risk borrowers.
  • There is no public trading market for our shares and we are not required to list or liquidate by a certain date or at all. Accordingly, our shares will lack liquidity and you may have to hold the investment indefinitely.
  • There are restrictions on your ability to have your shares repurchased under our share repurchase program.
  • There are substantial conflicts of interest between us and our advisor and its affiliates.
  • As with all investments in securities, there is risk of loss of capital.
  • This is not a solicitation. Please read prospectus, which is the only means of soliciting for shares of MVP REIT.