General Investment Risks

Loss of Principal: You may lose some or all of your invested capital.
Illiquidity: Real estate investments are generally illiquid. There is no public market for these securities, and you may not be able to sell your interest.
Long Hold Periods: Investments may require holding periods of 3-10+ years with no guarantee of return.
No Guaranteed Returns: Projected returns (IRR, equity multiples, cash-on-cash) are estimates only and are not guaranteed.
Past Performance: Past performance of any sponsor, deal, or asset class does not guarantee future results.

Real Estate-Specific Risks

Market Risk: Real estate values fluctuate based on economic conditions, interest rates, and local market dynamics.
Tenant Risk: Properties may experience vacancies, tenant defaults, or below-market rents.
Construction Risk: Development projects may face cost overruns, delays, or permitting issues.
Environmental Risk: Properties may have environmental liabilities including contamination, flood risk, or natural disasters.
Leverage Risk: Investments using debt financing amplify both gains and losses.
Interest Rate Risk: Rising interest rates can increase borrowing costs and reduce property values.
Concentration Risk: Investing in a single property or market concentrates your risk.

Syndication-Specific Risks

Sponsor Risk: The success of a syndication depends heavily on the sponsor/GP's competence and integrity.
Conflicts of Interest: Sponsors may have conflicts between their interests and those of investors.
Fee Structure: Management fees, acquisition fees, and promote structures reduce investor returns.
Limited Control: Limited partners have no control over property management, disposition timing, or capital calls.
Capital Calls: You may be required to contribute additional capital beyond your initial investment.
Dilution: Additional equity raises may dilute your ownership percentage.

Regulatory & Tax Risks

Securities Laws: These offerings are made under exemptions from SEC registration. Changes in securities law could affect your investment.
Tax Treatment: Tax benefits (depreciation, 1031 exchanges) are subject to change. Consult a qualified tax advisor.
SDIRA Compliance: Prohibited transactions within an SDIRA can result in disqualification and adverse tax consequences.
Zoning & Regulatory: Changes in zoning, building codes, or regulations can materially impact property value.

APEX Score Disclaimer

The APEX scoring system is a proprietary analytical tool that evaluates deals based on quantitative factors. APEX scores are not investment recommendations. A high APEX score does not guarantee a profitable investment. The scoring model has limitations and may not capture all relevant risk factors. Always conduct your own due diligence.

Platform Disclaimer

Zego RE is a technology platform that facilitates deal discovery and investor management. Zego RE does not:

Provide investment, tax, or legal advice
Guarantee the accuracy of information provided by sponsors
Guarantee the performance of any investment
Serve as a broker-dealer or investment adviser
Custody investor funds (funds flow through approved custodians)

Suitability

Investments on this platform are suitable only for investors who:

Meet applicable accreditation requirements
Can bear the economic risk of losing their entire investment
Have no need for liquidity from the investment
Have adequate financial resources and can tolerate the risks
Have reviewed the offering documents and consulted their own advisors

Investment Risk Disclosure