Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 46

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 46
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 interior inspections
or conduct more than cursory exterior inspections on a portion of the properties. Such inspection processes may fail to reveal major defects
associated with such properties, which may cause the amount of time and cost required to renovate and/or maintain such properties to substantially
exceed our estimates. Bulk portfolio acquisitions are also more complex than single-family home acquisitions, and we may not be able to
implement this strategy successfully. The costs involved in locating and performing due diligence (when feasible) on portfolios of residential
properties as well as negotiating and entering into transactions with potential portfolio sellers could be significant, and there is a
risk that either the seller may withdraw from the entire transaction for failure to come to an agreement or the seller may not be willing
to sell us the bulk portfolio on terms that we view as favorable. In addition, a seller may require that a group of residential properties
be purchased as a package even though we may not want to purchase certain individual assets in the bulk portfolio.

Moreover, to the extent the
management and leasing of such properties has not been consistent with our property management and leasing standards, we may be subject
to a variety of risks, including risks relating to the condition of the properties, the credit quality and employment stability of the
residents, and compliance with applicable laws, among others. In addition, financial and other information provided to us regarding such
portfolios during our due diligence may be inaccurate, and we may not discover such inaccuracies until it is too late to seek remedies
against such sellers. To the extent we pursue such remedies, we may not be able to successfully prevail against the seller in an action
seeking damages for such inaccuracies. If we conclude that certain individual properties purchased in bulk portfolio sales do not fit
our target investment criteria, we may decide to sell, rather than renovate and lease, such properties, which could take an extended period
of time and may not result in a sale at an attractive price.

From time to time we engage
in bulk portfolio dispositions of properties consistent with our business and investment strategy. With respect to any such disposition,
the purchaser may default on payment or otherwise breach the terms of the relevant purchase agreement, and it may be difficult for us
to pursue remedies against such purchaser or retain or resume possession of the relevant properties. To the extent we pursue such remedies,
we may not be able to successfully prevail against the purchaser.

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We depend on our residents and their willingness to meet their lease obligations