Disclosures and risk factors

1. No offer and no solicitation

Nothing on greyoaksmultifamily.com is an offer to sell, or a solicitation of an offer to buy, any security. No content here should be read as a recommendation to enter into any transaction.

Any offer of securities by Grey Oaks Multifamily is made only to qualified investors, only through definitive offering documents, and only in jurisdictions where such an offer is lawful. Where those documents and this website differ, the offering documents govern in all respects.

2. These are exempt offerings, not registered ones

Interests in our partnerships are securities offered under an exemption from registration, generally Rule 506 of Regulation D. The SEC describes the two paths in its material on Rule 506(b) and Rule 506(c).

An exemption is not an approval. No federal or state regulator reviews the merits of an exempt offering, passes on its fairness, or verifies the adequacy of its disclosure. The SEC sets out what a private placement is, and is not, in its investor education material and its investor bulletin on Regulation D offerings.

3. Accredited investors

Participation is generally limited to accredited investors as defined in Rule 501(a) of Regulation D. The SEC sets out the qualifying routes, including income, net worth and professional certification, on its accredited investor page, and we explain them in plain terms at accredited investor requirements.

Accreditation is an eligibility threshold and not a judgment that any investment is suitable for you. Meeting the definition creates no obligation on us to assess suitability, and it does not reduce the risk of loss.

4. Risk factors

An investment in a private real estate partnership is speculative and illiquid, and you should be prepared to lose the entire amount invested. The risks below are not exhaustive; the offering documents for any specific investment contain the complete risk factors for that investment and should be read in full.

Loss of capital. Limited partners are last in the order of distribution, behind lenders and behind any preferred or rescue capital. Total loss is possible.
Illiquidity. There is no redemption right and no meaningful secondary market. Capital is committed for the hold period, which may extend beyond any projection, as we set out at liquidity and hold periods.

Leverage. Properties are financed with mortgage debt. Leverage magnifies both gains and losses, and a loan maturity, covenant breach or the cost of replacing an interest rate cap can force a sale, a refinancing on unfavorable terms, or a capital call.
Capital calls and dilution. A partnership may request additional equity. Declining is generally permitted and generally results in dilution on terms set by the operating agreement, described at capital calls.

Concentration. A single-asset partnership has no diversification. One property, one submarket and one business plan carry the entire outcome.
Dependence on the sponsor. Limited partners take no part in management and rely on the general partner for execution, reporting and the decision of when to sell.

Market and interest rate risk. Property values, rents, occupancy, capitalization rates and financing costs move with conditions we do not control. Our market guides set out where we would and would not deploy capital, and those positions can be wrong.
Insurance, climate and physical risk. Premiums in coastal and storm-exposed markets have moved sharply and may move again, and some perils may become uninsurable at any price.

Regulatory and tax risk. Rent regulation, assessment practice, local taxation and federal tax treatment change. Statutes summarized anywhere on this site are summarized as at the date of publication.
Reporting timing. Partnership tax reporting on Schedule K-1 may arrive after the individual filing deadline, as described at Schedule K-1.

5. Forward-looking statements

This website contains forward-looking statements, including projections, targets, hold period estimates, and statements about intended strategy. They are identifiable by words such as expect, project, target, intend, anticipate, believe and similar expressions, and by the presence of any projected figure.

Forward-looking statements are not guarantees. They rest on assumptions about rents, expenses, financing, capitalization rates, timing and conditions that may prove incorrect. Actual results may differ materially and adversely. We undertake no obligation to update any forward-looking statement except where required by law.

6. Past performance

Past performance is not indicative of future results. Any reference to prior transactions, realized returns or prior partnerships describes specific assets in specific market conditions that will not recur.

Where any performance information appears, it is not audited unless expressly stated, and it does not represent the experience of every investor. Individual results vary with entry timing, structure, fees and tax position.

7. No investment, legal or tax advice

Grey Oaks Multifamily is not a registered investment adviser, a broker-dealer, a law firm or an accounting firm, and nothing on this site creates an advisory or fiduciary relationship with you.

The educational material at Learn and the analysis at Insights is general information about how these structures work. It does not account for your circumstances and it is not a recommendation. Take any decision to your own attorney, CPA or licensed adviser.

8. Third-party information and our own arithmetic

Our market guides rely on primary public sources, principally the Bureau of Labor Statistics, the Census Bureau, state legislatures, state revenue departments and municipal agencies. Each guide names its sources with the date of retrieval. We do not warrant the accuracy of information published by third parties.

Where we compute a figure from published data, we say so and label it as our own arithmetic. Where we do not hold a figure, it is shown as pending rather than estimated. Statutory language is quoted from the codified text where available, and any figure or statute may be superseded after publication.

9. Use of this website

Access to this site is subject to our terms of use, and information you submit is handled as described in our privacy policy.

This page and the risk factors above are the disclosures referred to elsewhere on the site. Where a specific offering is made, its own documents will contain risk factors specific to that investment, which supersede the general description here.