INVESTMENT DISCLAIMERS & INVESTMENT RISKS

We believe it is vitally important that you read and fully understand the following risks of investing.

INVESTMENT RISKS:

All investments, including real estate, is speculative in nature and involves substantial risk of loss. We encourage our investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we supply. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations.
 
Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do.

Hypothetical or simulated performance is not indicative of future results. Unless specifically noted otherwise, all return examples provided in our websites and publications are based on hypothetical or simulated investing. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because hypothetical or simulated performance is not necessarily indicative of future results.

Don’t enter any investment without fully understanding the worst-case scenarios of that investment.

FORWARD LOOKING STATEMENTS:

Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of strategies, plans or intentions. We have based these forward-looking statements on our current expectations and assumptions about future events. These assumptions include, among others, our projections and expectations regarding: market trends in the single-family home rental industry and in the local markets where we operate, our business strengths, our ideal tenant profile, the quality and location of our properties in attractive neighborhoods, our ability to create a cash flow opportunity with attractive current yields and upside from increasing rents and cost efficiencies and our understanding of our competition and general economic, demographic and real estate conditions that may impact our business. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements to conform to actual results or changes in our expectations, unless required by applicable law.

RISKS RELATED TO THE REAL ESTATE INDUSTRY

An investor’s performance and the value of their properties are subject to general economic conditions and risks associated with our real estate assets.

There are significant expenditures associated with an investment in real estate (such as debt service, real estate taxes, and insurance maintenance costs) that generally do not decline when circumstances reduce the income from the property. Income from and the value of the properties acquired may be adversely affected by the following factors:

  • downturns in international, national, regional and local economic conditions (particularly increases in unemployment);
  • the attractiveness of the properties acquired to potential tenants and competition from other properties;
  • increases in the supply of or decreases in the demand for similar or competing properties in our target markets;
  • bankruptcies, financial difficulties or lease defaults by tenants;
  • changes in interest rates, availability and terms of debt financing;
  • changes in operating costs and expenses;
  • changes in, or increased costs of compliance with, governmental laws, rules, regulations and fiscal policies, including changes in tax, real estate, environmental and zoning laws, and our potential liability thereunder;
  • our ability to provide adequate maintenance;
  • changes in the cost or availability of insurance, including coverage for mold or asbestos;
  • environmental conditions or retained liabilities for such conditions;
  • tenant turnover;
  • the illiquidity of real estate investments generally;
  • residents’ perceptions of the safety, convenience and attractiveness of our properties and the neighborhoods where they are acquired;
  • the ongoing need for capital improvements, particularly in older properties;
  • the ability or unwillingness of residents to pay rent increases;
  • civil unrest, acts of God, including earthquakes, floods and other natural disasters, which may result in uninsured losses, and acts of war or terrorism;
  • rent control or rent stabilization or other housing laws, which could prevent us from raising rents; and
  • increases in property-level maintenance and operating expenses.

For these and other reasons, Knox Holding Corp. cannot and does not make any guarantees to investor performance.

Knox Holding Corp. faces significant competition in the leasing market for quality tenants, which may limit our ability to rent our single-family homes on favorable terms or at all.

We face competition for tenants from other lessors of single-family properties, apartment buildings and condominium units, and the continuing development of apartment buildings and condominium units in many of our target markets increases the supply of housing and exacerbates competition for tenants. Many of these competitors may successfully attract tenants with better incentives and amenities, which could adversely affect our ability to obtain quality tenants and lease our single-family properties on favorable terms or at all. Additionally, some competing housing options may qualify for government subsidies that may make such options more affordable and therefore more attractive than our properties.

SEASONALITY

While Knox Holding Corp. has limited operating history, we believe that our business and related operating results will be impacted by seasonal factors throughout the year. In particular, we have experienced higher levels of tenant move-outs during the summer months, which impacts both our rental revenues and related turnover costs. Further, our property operating costs are seasonally impacted in certain markets for expenses such as snow removal and heating during the winter season and HVAC repairs and expenses during the summer season.

Improving economic conditions, combined with historically low residential mortgage rates, may cause some potential renters to seek to purchase residences rather than lease and, as a result, cause a decline in the number and quality of potential tenants.

Improving economic conditions, along with the availability of historically low residential mortgage interest rates and government sponsored programs to promote home ownership, has made home ownership more affordable and more accessible for potential renters who have strong credit. These factors may encourage potential renters to purchase residences rather than lease them, thereby causing a decline in the number and quality of potential tenants available to us.

DISCLAIMER

All calculations and data presented within the Knox Holding Corp. publications and digital marketing and media including but not limited to websites, brochures, presentations and return models are deemed to be accurate, but accuracy is not guaranteed. The projected pro forma returns on investment are intended for the purpose of illustrative projections to facilitate analysis and are not guaranteed by Knox Holding Corp., or its affiliates and subsidiaries. Past performance is not an indicator of future results.

The information provided herein is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice, consultation or service. The prospective client should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts pertaining to the property or properties described herein.

All marketing and media material have been prepared to provide summary, unverified information to prospective clients and to establish only a preliminary level of interest in the property. The information contained herein is not a substitute for a thorough due diligence investigation. Knox Holding Corp has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information presented has been obtained from sources we believe to be reliable; however, Knox Holding Corp. has not verified, and will not verify, any of the information contained herein, nor has Knox Holding Corp conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential clients must take appropriate measures to verify all the information set forth herein.

COPYRIGHT NOTICE

All copyrightable text and graphics, the selection, arrangement, color and presentation of all materials (including information in the public domain), and the overall design of this web site are property of Knox Holding Corp. All rights reserved. Permission is granted to download and print materials from this website for the sole purpose of viewing and reading for reference. Any other copying, distribution, retransmission, or modification of information or materials on this site, whether in electronic or hard copy form, without the express prior written permission of Knox Holding Corp. is strictly prohibited.

RENTAL HOUSING AND RENTAL HOUSING ADVERTISING

All real estate advertised on our web site for rent, lease or sale is subject to all applicable local, state and Federal laws. The Federal Fair Housing Act of 1968 makes it illegal to advertise “any preference, limitation or discrimination because of race, color, religion, sex, handicap, family status, or national origin or intention to make any such preference, limitation, or discrimination.”

We will not knowingly accept any advertising that is in violation of the law. Whenever Knox Holding Corp. becomes aware of any advertising violation of the law or illegal practice of any owner, agent or manager, the advertising, links and their property information will be removed from all aspects of our distribution stream.  This website may be used only for lawful purposes by individuals seeking rental housing, insurance brokerage services, and mortgage brokerage services in full compliance with the law.

KNOXFINANCIAL.COM is intended for individuals seeking to secure rental housing and/or (OTHER SERVICE LINES) in full compliance with the law. Use of our site is for approved and authorized commercial use only – all other use is strictly prohibited. No one may reproduce, distribute, display, publish, republish, copy or sell any content contained on KNOXFINANCIAL.COM in part or in whole for commercial or personal gain. The content of this site may not be reposted, repackaged, reorganized or sold on any other site or print medium. Commercial use of our listing information by FEE AGENCIES, REAL ESTATE FIRMS, RELOCATION COMPANIES or ANY OTHER RENTAL SERVICE OR COMPANY PROVIDING SIMILAR SERVICES IS STRICTLY PROHIBITED. Knox Holding Corp. may seek legal remedy as is appropriate under the law for the unauthorized use or disclosure of listing information.

Due to the nature of the rental market, some listings may no longer be available or information on current listings may have changed at the time you receive the information. The material is not guaranteed to be accurate, complete, or up-to-date. Prospective renters should check with the county and/or city for square footage of the homes and lot sizes. Renters should also verify with schools regarding school attendance. Knox Holding Corp. and KNOXFINANCIAL.COM shall not be held responsible for any inaccuracies, typographical errors or out-of-date information published on this site and Knox Holding Corp. will take no responsibility whatsoever for the practices of rental applicants or the accuracy of properties advertised by third party owners not controlled by it and/or leasing practices of third party owners unrelated to Knox Holding Corp.

DISCLAIMERS REGARDING PROFESSIONAL SERVICES AND ATTORNEY CLIENT RELATIONSHIP

The content and functionality on the site are provided with the understanding that Knox Holding Corp. and KNOXFINANCIAL.COM are not herein engaged in rendering professional advice and services to you, or any web or Internet visitor through the web site or their content or tools. Guests and visitors are reminded that all information provided is general in nature. Those with specific issues, questions, and problems are encouraged to obtain appropriate professional advice.  No attorney client relationship is established by your use of this site or any linked site. All information, content and functionality on the site is provided “as is,” without warranty of any kind, either express or implied, including without limitation, implied warranties or merchantability and fitness for a particular purpose. Knox Holding Corp. and its third-party content providers make no warranties, express or implied, as to the accuracy, or adequacy of the site content. Knox Holding Corp. shall have no liability or responsibility for any information published on linked web sites, contained in any user submissions published on the site, or content provided by third parties. Neither Knox Holding Corp. nor its third-party content providers shall be liable for any damage or loss, whether indirect, incidental, consequential, or punitive or for lost revenues, profits, or income whether or not advised of the possibility of such damages or losses and regardless of the theory of liability.

THIRD PARTY WEB SITES

Knox Holding Corp. through KNOXFINANCIAL.COM provides links to third party web sites. These links are for the convenience of our web guests and are not an endorsement of the third-party site or of any products or services contained in the sites. Some of the content appearing to be on this site is supplied by third parties. Knox Holding Corp. has no responsibility for these third-party web sites, which are governed by the Terms of Use and privacy policies, if any, of the applicable third-party content providers.

YOUR COMPUTER HARDWARE AND SOFTWARE

You agree that the use of this web site is at your sole option and discretion. You, and not Knox Holding Corp. or KNOXFINANCIAL.COM will assume the responsibility of the entire cost of any necessary repairs or service to your computer system, whether or not you believe that the necessary repairs or service stem from the use of KNOXFINANCIAL.COM or any linked sites. Also agreed is that Knox Holding Corp., KNOXFINANCIAL.COM, and the employees involved in the development and distribution of this website are not liable or responsible to any person whatsoever, for any reason, for any damage, loss, injury claim, liability or other cause resulting from the use of this web site, its content, or a third party link. Knox Holding Corp., KNOXFINANCIAL.COM, and employees involved shall also not be held responsible or liable for any claim or damage resulting from the failure of web site’s performance, error (human or computer), service interruption, computer virus, unauthorized access to personal information, and opinions appearing on this web site. You agree that Knox Holding Corp., KNOXFINANCIAL.COM, are not responsible for any defamatory, offensive, or illegal activities of other subscribers to this web site. Knox Holding Corp., KNOXFINANCIAL.COM, liability is limited to the full extent permitted by law.

INDEMNIFICATION

With your use of this site, you agree to indemnify, protect, defend and hold Knox Holding Corp., its officers, directors, employees, agents and KNOXFINANCIAL.COM, harmless, from and against all losses, expenses, damages and costs, including reasonable attorneys’ fees, resulting from any violation by you of these Terms and Conditions.

JURISDICTION AND GOVERNING LAW

Any action by Knox Holding Corp., by you or by any third party brought to enforce these terms and conditions with any matters related to this web site shall be brought only in either the State or Federal Courts located in Boston, MA and you consent to the jurisdiction of these courts.