Risk Factors

Investing in our common stock involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment. See the section entitled “Risk Factors”  in the current prospectus for a discussion of the risks which should be considered in connection with your investment in our common stock, including:

• The amount of the distributions paid may decrease at any time. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on your investment, and you may lose all or a portion of your investment.
• We are a “blind pool” offering because we currently do not own any properties and we have not identified any properties to acquire. Since we have neither identified nor acquired any investments, you will not have the opportunity to evaluate the merits and/or demerits of such investments.
• We are depending on our advisor to select investments and conduct our operations. Adverse changes in the financial condition of our advisor or our relationship with our advisor could adversely affect us.
• No public market exists for our shares of common stock, nor may a public market ever exist and our shares are illiquid.
• There are substantial conflicts among the interests of our investors, our interests and the interests of our advisor, sponsor, dealer manager and our and their respective affiliates regarding compensation, investment opportunities and management resources.
• Our investment objectives and strategies may be changed without stockholder consent.
• We are obligated to pay substantial fees to our advisor, which may result in our advisor recommending riskier investments.
• We may incur substantial debt, which could hinder our ability to pay distributions to our stockholders or could decrease the value of your investment if income on, or the value of, the property securing the debt falls.
• Our organizational documents permit us to pay distributions from any source. Until substantially all the proceeds from this offering are invested, we may use proceeds from this offering and financings to fund distributions until we have sufficient cash flow. There are no established limits on the amounts of net proceeds and borrowings that we may use to fund such distribution payments. Any of these distributions may reduce the amount of capital we ultimately invest in properties and other permitted investments and negatively impact the value of your investment.
• Our failure to qualify or remain qualified as a REIT would result in higher taxes, may adversely affect our operations, would reduce the amount of income available for distribution and would limit our ability to make distributions to our stockholders.
• There are limitations on ownership and transferability of our shares.  Please see "Description of Securities-- Restrictions on Ownership and Transfer."
• The management of multiple REITs by our executive officers and officers of our advisor may significantly reduce the amount of time spent on activities related to us and cause other conflicts of interest, which may cause operating results to suffer.
• We will compete for investors with other programs of our sponsor.