LIABILITY DISCLAIMER & DISCLOSURE
The following disclaimer text is specifically designed to seem as scary as possible, so that you are fully aware of the possible “down side” to investing. The “up side” will take care of itself.
Sometimes, you can make no mistake and still lose. That’s called “Real Life“. Life is all about managing risk, not hiding from it.
Smith Syndication is currently a division of Verity Investments LLC (a Colorado Limited Liability Company). Smith Syndication offers to our clients the opportunity to invest in distressed income properties for repositioning and stabilizing. The investments that Smith Syndication offers are not insured or guaranteed by the U.S. Government, the FDIC or any banking or financial institution. The investments are privately offered only to accredited and sophisticated investors.
Our management Power Team always attempts to circumvent and minimize the “down side” of investments that turn bad. It’s just that sometimes a project will turn so bad that you cannot recover your investment either by selling the property or by allowing the lenders to foreclose on the property.
Smith Syndication cannot and will not guarantee any return on your investment or any return of your investment. Your investment is in the equity of the real property without any guarantee of performance. Before you decide to invest, we strongly encourage you to retain legal representation of an attorney to advise you on your specific situation with regard to any investment offering.
Your agreement to invest money in our projects is expressly subject to you agreeing to release fully any and all of our liability in the transaction. We search for the opportunity, conduct due diligence with the assistance of qualified professionals, select a repositioning Power Team, and then we present to you the opportunity with all of the information that we know about the proposed project. We are not your agent or advisor. Investing in our projects will not create a client-fiduciary relationship. We intend for us and for you to earn substantial profit from your investment in our projects. Our profit comes from the contract assignment fee paid to us from your investment upon closing the purchase of the property, and from a “subordinated equity” interest in the property for cash flow and for the exit strategy. Our ownership interest is subordinated to your interest in exchange for us having no liability on expenses or deficits.
Although losing the entire principal investment through investing in these distressed property projects is highly improbable, it is possible. Please understand the possibility to have interruptions or bad variations in cash flow, as well as needing additional funding to realize the full potential of the repositioned property. Smith Syndication will provide assistance in negotiating and managing these risks while we are involved in the transaction. We will not subsidize that cash flow from other income streams.
For some investments, Smith Syndication may retain the option, and not the obligation, to buy your “common equity” interests (usually through a refinance loan) at a pre-determined return on your investment. For each investment, you will know before committing to invest whether there is such an option and the exact terms. For a “preferred equity” investment, there is always an obligation for the “common equity” investors to redeem the “preferred equity” at specific maturity terms (like a loan).
In some improbable situations, acquiring ownership of the real property may expose you to additional liability, for which there may be inadequate insurance, or possibly any insurance would be unavailable or impractical. Smith Syndication exercises due diligence to understand, to manage, and to mitigate such risks, but we can never eliminate all risk. Physically or managerially distressed properties are our specialty. Other risks may include mold or chemical contamination, expansive or contaminated soil, personal injury (“slip and fall”) to tenants or visitors, improper or defective repairs, code violations, condemnation proceedings (e.g., “eminent domain” taking of the property), force majeure, natural disasters, delinquent property taxes or other kinds of government assessments against the property, etc.
Also, no investment is completely risk free and past performance is not a guarantee of future results. Additionally, the anticipated cash flow, either before or after stabilization, and the exit strategy is not guaranteed. Each investment stands on its own merits and the results are subject to market forces.
The information presented on the Smith Syndication website is general in nature without consideration of your financial situation or your investment objectives, and we are not making recommendations based on your personal situation. The suggested investment strategies may be inappropriate for your situation. You are strongly encouraged to retain the services of a qualified professional to advise you on the merits of each opportunity. Only you are responsible for your decisions. We believe the information is reliable, but Smith Syndication does not guarantee its accuracy, timeliness, or completeness. Consider Smith Syndication as a “start up” company with only managerial experience and expertise, and no assets.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES, IF ANY, DESCRIBED HEREIN.
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