LegacyHub Capital

The fund is critically dependent on the Sponsor, LegacyHub Realty Corp.; loss or unavailability of its services would have an adverse effect on the business and could result in loss of investor capital.

“The loss by or unavailability of their services would have an adverse effect on our business, operations, and prospects, in that our inability to replace LegacyHub Realty, Corp. could result in the loss of one's investment. There can be no assurance that we would be able to locate or employ personnel to replace LegacyHub Realty, Corp. should its services be discontinued.”

The Company is significantly dependent on its Sponsor, LegacyHub Realty Corp. Loss or unavailability of the Sponsor's services would have an adverse effect on business operations and could result in loss of investor capital.

“Our business plan is significantly dependent upon the abilities and continued participation of our Sponsor, LegacyHub Realty, Corp. It would be challenging to replace LegacyHub Realty Corp. at such an early stage of development of the Company. The loss by or unavailability of their services would have an adverse effect on our business, operations, and prospects, in that our inability to replace LegacyHub Realty, Corp. could result in the loss of one's investment.”

This is a blind pool offering; no investments have been identified at the time of the offering, meaning investors cannot evaluate specific assets before purchasing shares.

“This is a 'blind pool' offering because we have not identified any investments to acquire with the net proceeds of this offering. You will not be able to evaluate our investments prior to purchasing shares.”

All agreements and compensation arrangements between the Company and the Manager/Sponsor are not the result of arm's length negotiations, creating inherent conflicts of interest.

“All of the agreements and arrangements between such parties, including those relating to compensation, are not the result of arm's length negotiations. Some of the conflicts inherent in the Company's transactions with the Manager and its affiliates, and the limitations on such parties adopted to address these conflicts, are described below.”

There are material conflicts of interest between the Company, Manager, and Sponsor. All fee arrangements are not the result of arm's length negotiations. The Manager has no fiduciary duty to members and may consider only its own interests.

“Our Sponsor's real estate and finance professionals acting as or part of our Manager's team have to allocate their time among us, our Sponsor's business and other programs and activities in which they are involved. Prevailing market rates are determined by our Manager based on industry standards and expectations of what our Manager would be able to negotiate with a third party on an arm's length basis. All of the agreements and arrangements between such parties, including those relating to compensation, are not the result of arm's length negotiations.”

Shareholders have agreed to limit remedies for Manager actions. The Manager maintains a contractual rather than fiduciary relationship with shareholders. Liability is limited and the Manager is broadly indemnified by the Company.

“Our Manager maintains a contractual, as opposed to a fiduciary relationship, with our shareholders and us. Accordingly, our shareholders and us will only have recourse and be able to seek remedies against our Manager to the extent it breaches its obligations pursuant to our Operating Agreement. Furthermore, we have agreed to limit the liability of our Manager and to indemnify our Manager against certain liabilities.”