CalTier

Fund has sustained recurring net losses since inception with no profits generated; net loss of $598,490 for the six months ended June 30, 2022 and net loss of $416,000 for the year ended December 31, 2021.

“We have a limited operating history, and have sustained operating losses since inception. The company was formed in 2019 and the General Partner was formed in 2017. While we have a plan for our future operations, there is just a limited track record we can point to for investors to understand our prior performance. As of the date of the Offering Circular, we have purchased two properties that we wholly-own, and have made several investments into joint venture opportunities, pursuant to which the company acquired partial ownership special purpose vehicles that own various real-estate properties. While we have generated revenues to date, we have not yet generated profits. We had a net loss of $598,490 for the six months ended June 30, 2022, and a net loss of $416,000 for the year ended December 31, 2021. There is no guarantee we will ever become profitable.”

Fees paid to the General Partner and affiliates are not the result of arm's length negotiations; GP officers may be principals in companies providing property management, financing, and other services to the fund, creating conflicts of interest.

“Fees for services of the General Partner and affiliates to the company are not the result of arm's length negotiations. The current set up of the fees could impact their judgment including with respect to the sale of real estate investments, the acquisition of real estate, and the continuation, renewal or enforcement of our agreements with our General Partner or its affiliates.”