Investment Disclosures

Investment Risk Factors

General Investment Risks

• Loss of Capital: Real estate investments are speculative and you may lose some or all of your invested capital.
• Illiquidity: Real estate investments are generally illiquid. You may not be able to sell your investment quickly or at all.
• No Guaranteed Returns: There is no assurance that any investment will achieve its objectives or generate returns.
• Market Volatility: Real estate values can fluctuate significantly due to market conditions, economic factors, and other variables.
• Long-Term Commitment: Real estate investments typically require long holding periods, potentially 5-10 years or longer.

Property-Specific Risks

• Construction Delays: Development projects may experience delays, cost overruns, or failure to complete.
• Occupancy Risk: Properties may not achieve or maintain expected occupancy levels.
• Operating Expenses: Property operating costs may exceed projections, reducing returns.
• Environmental Issues: Properties may be subject to environmental liabilities or regulations.
• Title and Legal Issues: Properties may have title defects or be subject to litigation.
• Natural Disasters: Properties may be damaged by earthquakes, floods, hurricanes, or other natural events.

Market and Economic Risks

• Interest Rate Risk: Rising interest rates can negatively impact property values and financing costs.
• Economic Downturn: Economic recessions can reduce demand for real estate and lower property values.
• Local Market Conditions: Property performance depends heavily on local economic and demographic trends.
• Competition: Increased supply of competing properties can reduce occupancy and rental rates.
• Regulatory Changes: Changes in zoning, tax laws, or regulations may adversely affect property values.

Financial and Leverage Risks

• Leverage: Use of debt financing magnifies both gains and losses.
• Refinancing Risk: Inability to refinance debt on favorable terms may force a sale at an inopportune time.
• Default Risk: Failure to meet debt obligations could result in foreclosure.
• Cash Flow: Properties may not generate sufficient cash flow to meet expenses and debt service.

Investor Suitability

Real estate investments through Ficus Aurea are suitable only for investors who:

• Can afford to lose their entire investment
• Do not need liquidity for an extended period (typically 5-10+ years)
• Have sufficient net worth and income to bear the risks
• Understand and can evaluate the risks of real estate investment
• Have experience with alternative investments or access to qualified advisors

Fees and Expenses

Investments are subject to various fees and expenses, which may include:

• Acquisition Fees: Fees paid for identifying and acquiring properties
• Asset Management Fees: Ongoing fees for managing investments (typically 1-2% annually)
• Performance Fees: Incentive fees based on investment performance (typically 20% of profits)
• Disposition Fees: Fees paid upon sale of properties
• Administrative Expenses: Legal, accounting, and other operational costs
• Third-Party Fees: Property management, brokerage, and consulting fees

All fees will be fully disclosed in offering documents for specific investments. These fees reduce net returns to investors.

No Registration Under Securities Laws

Accredited Investor Requirements

Many investments are available only to "accredited investors" as defined by securities regulations. You may be required to provide documentation to verify your accredited investor status. Generally, accredited investors include individuals with net worth exceeding $1 million (excluding primary residence) or annual income exceeding $200,000 ($300,000 jointly).

International Investors

International investors may be subject to additional risks including currency fluctuations, foreign tax obligations, repatriation restrictions, and legal uncertainties. International investors should consult with tax and legal advisors regarding investment implications in their home country.

Tax Considerations

Real estate investments have complex tax implications. Investors may be subject to income tax, capital gains tax, depreciation recapture, and passive activity loss limitations. International investors may be subject to withholding taxes. The tax information provided is general in nature and you should consult with qualified tax advisors.

Conflicts of Interest

Ficus Aurea and its affiliates may have conflicts of interest, including:

• Receiving fees and compensation that may incentivize certain decisions
• Engaging in transactions with affiliates that may not be on arm's-length terms
• Having interests in other investments that may compete with your investment
• Facing conflicts between the interests of different investors or investment vehicles

Forward-Looking Statements

Information provided may include forward-looking statements regarding expected returns, property performance, market conditions, and other projections. These statements are based on assumptions and estimates that may prove incorrect. Actual results may differ materially from projections. You should not rely solely on forward-looking statements when making investment decisions.

No Guarantee or Insurance

Investments are not deposits or obligations of any bank and are not insured by the FDIC or any other governmental agency. There is no guarantee of principal or returns.

Due Diligence and Professional Advice

You should conduct your own due diligence and consult with legal, tax, and financial advisors before making any investment. You should carefully review all offering documents, financial statements, and other materials provided. Ficus Aurea does not provide investment, legal, or tax advice.

Questions and Additional Information

If you have questions about these disclosures or need additional information, please contact us: