Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 49

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 49
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 the value of our assets will be reduced by any such uninsured loss. In addition, other than any working
capital reserve or other reserves we may establish for a particular property, we could have no source of funding to repair or reconstruct
any uninsured damaged property. Also, to the extent we must pay unexpectedly large amounts for insurance, we could suffer reduced cash
flow that would result in lower distributions to stockholders.

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We may have difficulty selling real estate investments, and our ability to distribute all or a portion of the net proceeds from such sale to our stockholders may be limited.

Real estate investments are
relatively illiquid. We will have a limited ability to vary our portfolio in response to changes in economic or other conditions. We will
also have a limited ability to sell assets in order to fund working capital and similar capital needs. When we sell any of our properties,
we may not realize a gain on such sale. We may not elect to distribute any proceeds from the sale of properties to our stockholders; for
example, we may use such proceeds to:

| · | purchase additional properties; |

| · | fund capital commitments to our joint ventures; |

| · | repay debt, if any; |

| · | buy out interests of any co-venturers or other partners in any joint venture in which we are a party; |

| · | create working capital reserves; and/or |

| · | make repairs, maintenance, tenant improvements or other capital improvements or expenditures to our remaining properties. |

Our ability to sell our properties
may also be limited by our need to avoid a 100% penalty tax that is imposed on gain recognized by a REIT from the sale of property characterized
as held for sale to customers in the ordinary course of business. In order to ensure that we avoid such characterization, we may be required
to hold our properties for the production of rental income for a minimum period of time, generally two years, and comply with certain
other requirements in the Internal Revenue Code of 1986, as amended (the “Code”). As such, we could be restricted from selling
a property at an opportune time to maximize proceeds.

Representations and warranties made by us in connection with sales of our properties may subject us to liability that could result in losses and could harm our operating results and, therefore, distributions we make to our stockholders.

When we sell a property, we
may be required to make representations and warranties regarding the property and other customary items