Investment Disclosures
Important Information About Our Real Estate Syndication Offerings
Risk Disclosure
Real estate syndication investments involve substantial risks and are not suitable for all investors. Before investing, you must carefully consider the risks described below and in any offering documents provided to you. These risks are not exhaustive, and there may be additional risks not discussed here.
Risk of Loss
Real estate investments are subject to significant risks of loss, including a complete loss of your investment. Property values may decline due to market conditions, economic cycles, interest rate changes, or other factors beyond our control. There is no guarantee that a property will appreciate in value, and it may depreciate.
Illiquidity Risk
Unlike publicly traded securities, investments in real estate syndications have no secondary market and are highly illiquid. You may not be able to sell your investment or access your capital for extended periods, potentially for the entire duration of the investment. Early withdrawals, if permitted, may be subject to substantial penalties.
Limited Operating History
Many real estate syndications involve newly formed entities or acquisitions of properties with limited operating history. Past performance of similar investments or properties is not indicative of future results. The syndicate's projections may not materialize, and actual financial performance may be materially lower than projections.
Market and Economic Risks
Real estate values and rental income are subject to fluctuations in market conditions, including changes in employment levels, interest rates, inflation, deflation, and consumer spending patterns. Economic recessions, natural disasters, pandemics, or other unforeseen events can have material adverse effects on property values and rental income.
Leverage Risk
Properties may be financed with debt. In adverse economic conditions, properties may be worth less than the outstanding debt, resulting in negative equity. If a property cannot generate sufficient cash flow to service the debt, the syndicate may need to use reserves or capital contributions to meet obligations.
Tenant and Occupancy Risk
The syndicate's returns depend on attracting and retaining quality tenants. Tenant defaults, extended vacancies, or significant reductions in rental rates could adversely affect cash flow and property value. Loss of major tenants could significantly impact the syndicate's financial performance.
Past Performance Disclaimer
Any historical returns, examples, or case studies presented on our website or in marketing materials are provided for informational purposes only. Past performance is not indicative of future results. Investment returns may vary substantially from historical performance, and losses may occur.
Projected or hypothetical returns should not be considered as predictions or guarantees of actual results. The actual returns you receive will depend on numerous factors, including the specific properties acquired, market conditions at the time of investment and exit, management performance, and overall economic conditions.
Forward-Looking Statements
This website and any materials we provide may contain forward-looking statements regarding projected returns, appreciation potential, income, or other future results. Forward-looking statements are based on management's current expectations and assumptions and are subject to significant risks and uncertainties.
Actual results may differ materially from those projected or anticipated. Factors that could cause actual results to differ include, but are not limited to: changes in economic conditions, interest rate fluctuations, property market dynamics, regulatory changes, tenant defaults, natural disasters, and other unforeseen events. We do not undertake any obligation to update or revise forward-looking statements.
Accredited Investor Definition
Our investment opportunities are limited to accredited investors as defined under Rule 501 of the SEC's Regulation D. An accredited investor is an individual who meets one or more of the following criteria:
- Had individual income exceeding $200,000 (or joint income with spouse exceeding $300,000) in each of the two most recent years and reasonably expects to exceed that income in the current year
- Has a net worth exceeding $1,000,000, either individually or jointly with a spouse (excluding the value of a primary residence)
- Is a general partner, officer, director, or trustee of a business that has assets exceeding $5,000,000
- Is an entity with assets exceeding $5,000,000
By expressing interest in our offerings, you represent and warrant that you meet the definition of an accredited investor and will not transfer your investment to a non-accredited investor.
Securities Not Registered
The securities offered through ETP Properties are not registered with the Securities and Exchange Commission or any state securities authority. These offerings are made pursuant to exemptions from registration, including Regulation D and/or Regulation A. The lack of registration means that these securities are subject to substantial restrictions on transferability and are not subject to the same disclosure and reporting requirements as registered securities.
The SEC has not reviewed or approved these securities, and the absence of such review does not constitute a determination that the offering is legal or that the information provided is accurate or complete.
No Investment Advice
Nothing provided on our website or in communications with our representatives should be construed as investment advice, a recommendation, or an endorsement of any particular investment. We do not know your individual financial circumstances, investment objectives, risk tolerance, or investment timeline.
Before making any investment decision, you should consult with qualified financial, legal, tax, and investment advisors who understand your individual situation and can provide personalized guidance appropriate to your circumstances.
No Guarantee of Returns
We do not guarantee any specific return or minimum return on investment. Investment returns depend on numerous factors beyond our control, including market conditions, tenant performance, property management, financing terms, and overall economic conditions. The syndicate may experience losses, including complete loss of invested capital.
Any projections or illustrations of potential returns are hypothetical and should not be considered as predictions or guarantees. Actual returns may be significantly lower or negative.
Tax Considerations
Real estate syndication investments have complex tax consequences that vary depending on your individual tax situation. Investments may be subject to ordinary income tax, capital gains tax, self-employment tax, depreciation recapture, alternative minimum tax, and other tax implications that are difficult to predict.
It is essential that you consult with a qualified tax professional before investing to understand the tax implications specific to your situation. Tax laws are complex and subject to change. We do not provide tax advice, and you should rely on your own tax advisor for guidance on whether an investment is appropriate for your tax situation.
Conflicts of Interest
ETP Properties and its principals may have conflicts of interest regarding real estate syndication investments. These conflicts may include:
- Compensation from sponsors or operators of properties
- Investment in the same syndications offered to investors
- Relationships with property managers, lenders, or other service providers
- Acquisition of properties from entities in which principals have an interest
These conflicts are disclosed in any offering memorandum or private placement documentation provided to investors. We endeavor to manage conflicts of interest in a fair and transparent manner.
Due Diligence
We encourage all prospective investors to conduct thorough due diligence before investing. You should carefully review all offering documents, including the Private Placement Memorandum, Operating Agreement, and any other materials provided. You should also conduct independent research regarding the properties, markets, sponsors, and operators involved in the syndication.
If you do not fully understand the investment or have questions, we encourage you to consult with qualified professionals before investing.
Contact for Questions
If you have any questions about these disclosures or our investment offerings, please contact us:
Email: evan@etpproperties.com
Phone: (513) 638-9799
Acknowledgment
By proceeding to review specific investment offerings from ETP Properties, you acknowledge that you have read and understood these disclosures and the risks associated with real estate syndication investments. You represent that you have adequate financial resources to assume the risk of loss on this investment and that the investment is suitable for your financial situation and investment objectives.