County Trust Capital
Integrity • Passion • Excellence

Risks Associated with Multifamily Housing Ownership

County Trust Capital has carefully examined all potential risks factors associated with real estate, passive investment and the multifamily industry.  We carefully constantly account for all potential risks including but not limited to: credit risks and all kind of other unknown risks to us.  There will be many other risks that we have not taken into consideration and we will make mistakes.  However, we also believe that multi-family is a sound industry with extraordinary upside potential because these buildings will be here way after we are gone.

Attached is a list of potential risks.  We include them in our website, so you, the potential investor, could learn that this is not a risk-free investment.  We will try our utmost to avoid or prevent these risks. 

Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to:

Risk # 1

Changes in economic conditions generally and the real estate market specifically;

Risk # 2

Limited ability to dispose of assets because of the relative illiquidity of real estate investments;

Risk # 3

Intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease units;

Risk # 4

Defaults on or non-renewal of leases by tenants;

Risk # 5

Increased interest rates and operating costs;

Risk # 6

Our failure to obtain necessary outside refinancing;

Risk # 7

Decreased rental rates or increased vacancy rates;

Risk # 8

Changes in multi-family or geographic market trends;

Risk # 9

Changes in real estate and zoning laws and increases in real property tax rates and values;

Risk # 10

Failure of acquisitions to yield anticipated results;

Risk # 11

Failure to achieve the target returns, internal rate of return, multiple and distributions to Members;

Risk # 12

Legislative or regulatory changes impacting our business or our assets; and to liability relating to environmental and health and safety matters

Risk # 13

Significant increases to insurance cost or inability to obtain re-insurance