All investments include significant risks. We strive to identify and discuss such risks frankly with our clients, and we document them in our investment service presentations.
Risks include, but are not limited to:
- Equity Risk: This program does not guarantee any of the investor’s principal investment.
- Real Estate Investment Risk: As with all investment property transactions, the investor will take market risk regarding occupancy, rent/expense levels as well as the eventual sale price of the property. Also, the investor risks any loss due to natural or man-made disasters, including earthquakes, floods or spillage of hazardous materials.
- Currency Risk: There is no way of predicting future currency fluctuations of the US dollar against Japanese Yen.
- Financing Risk: It is anticipated that ECA may be able to arrange a first mortgage loan of approximately 50% of the purchase price, and a very competitive interest rate. However there are no assurances that the loan will be available or at what interest rate until a commitment letter is issued by the lender.
- Exit Risk: Sale of the property may be scheduled to occur, for example, 5 years or more from the time of acquisition. However, this program does not guarantee or make any assurances that there will be demand for the property or that financing will be available for such properties at that time in the future.
Nisso Dai-22 Bldg. 901
1-11-10 Azabudai, Minato-ku, Tokyo 106-0041 Japan
Efficiency Capital Advisors K.K.
Type II Financial Instruments Business Operator
Kanto Regional Finance Bureau No. 1231
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