rebase

1. General Investment Risks

All investments carry inherent risks. Real estate investments are particularly subject to market volatility and economic conditions that can significantly impact returns.

• Loss of Principal: You may lose some or all of your invested capital
• No Guaranteed Returns: All return projections are estimates and not guarantees
• Illiquidity: Real estate investments typically cannot be easily sold or converted to cash
• Market Risk: Real estate values fluctuate based on economic and local market conditions

2. Fix & Flip Specific Risks

Fix and flip investments carry additional risks beyond traditional real estate:

Construction and Renovation Risks

• Cost overruns exceeding budgeted renovation expenses
• Construction delays due to permits, weather, or contractor issues
• Discovery of unforeseen structural problems or code violations
• Quality issues requiring additional repairs or corrections

Market Timing Risks

• Changes in local real estate market conditions during renovation
• Seasonal fluctuations affecting sale prices and timing
• Interest rate changes impacting buyer financing availability
• Extended time on market reducing profitability

Regulatory and Legal Risks

• Changes in zoning laws or building codes
• Permit delays or denials
• Environmental issues or contamination discovery
• Title defects or lien issues

3. Rental Property Specific Risks

Rental property investments involve unique risks related to property management and tenant relations:

Tenant and Occupancy Risks

• Vacancy periods resulting in no rental income
• Tenant default or non-payment of rent
• Tenant damage exceeding security deposits
• Eviction costs and legal proceedings
• Difficulty finding qualified tenants in certain markets

Property Management Risks

• Ongoing maintenance and repair costs
• Emergency repairs requiring immediate capital
• Property management fees reducing returns
• Compliance with changing landlord-tenant laws
• Insurance claims and coverage gaps

Market and Economic Risks

• Rental rate decreases due to market conditions
• Increased competition from new rental properties
• Economic downturns affecting tenant ability to pay
• Property tax increases reducing cash flow
• Changing neighborhood demographics

Liquidity and Exit Risks

• Difficulty selling rental properties quickly
• Market timing risks affecting sale prices
• Capital gains tax implications on sale
• Tenant rights that may complicate sales

4. Investment Structure Risks

Debt Investments

• Default Risk: Borrower may fail to make payments or repay principal
• Foreclosure Risk: Recovery through foreclosure may be insufficient
• Interest Rate Risk: Fixed returns may not keep pace with inflation
• Subordination: Your investment may be subordinate to senior liens

Equity Investments

• Junior Position: Equity holders are paid after all debt obligations
• No Fixed Returns: Profits depend entirely on project success
• Dilution Risk: Additional capital raises may reduce your ownership percentage
• Management Risk: Returns depend on sponsor's execution ability

5. Platform and Technology Risks

As a beta platform, additional risks include:

• Platform Reliability: Technical issues may affect your ability to monitor investments
• Data Security: Risk of cybersecurity breaches affecting personal information
• Service Interruption: Platform downtime may impact access to your account
• Feature Changes: Platform functionality may change during beta testing

6. Sponsor and Management Risks

• Key Person Risk: Dependence on key team members for project success
• Experience Risk: Limited track record in specific market conditions
• Conflicts of Interest: Sponsor may have competing interests
• Financial Condition: Sponsor's financial difficulties could impact projects

7. Liquidity and Exit Risks

Real estate investments are generally illiquid. You should expect to hold your investment for the full duration of the project timeline.

• No Secondary Market: Limited or no ability to sell your investment before completion
• Extended Timeline: Projects may take longer than projected to complete
• Capital Calls: Additional investment may be required to complete projects
• Forced Sale: Properties may need to be sold at unfavorable prices

8. Tax Considerations

Real estate investments have complex tax implications that vary by investor situation:

• Income from investments may be taxable as ordinary income
• Capital gains treatment may not be available
• State and local tax obligations may apply
• Tax laws may change affecting your investment returns

You should consult with your tax advisor regarding the tax implications of any investment.

9. Due Diligence Responsibility

Before making any investment, you are responsible for:

• Reviewing all offering materials and legal documents
• Understanding the specific risks of each investment
• Evaluating your financial ability to bear losses
• Consulting with financial, tax, and legal advisors
• Determining if the investment fits your overall portfolio strategy

10. No FDIC Insurance or Government Protection

Investments offered through Rebase are not insured by the FDIC, SIPC, or any other government agency. There is no guarantee that you will receive any return on your investment or recover your principal amount.

11. Forward-Looking Statements

Any projections, forecasts, or estimates provided are based on current expectations and assumptions. Actual results may differ materially from these projections due to various factors including those described in this risk disclosure.

Past performance of any property or investment does not guarantee future results.

12. Investor Suitability

• Meet accredited investor requirements
• Have significant investment experience
• Can afford to lose their entire investment
• Do not require liquidity from this investment
• Have adequate liquid assets for their current needs

13. Contact for Questions

If you have questions about these risks or need clarification on any investment, please contact us before investing: