Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 122

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 122
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eto, the proceeds are available for our other capital needs, whether related to            
 the repayment of debt or otherwise. For purposes of this table, however, we have assumed that we will use all the net proceeds for          
 acquisitions of real property and other real estate-related investments and the payment of related fees and expenses. Until                 
 required in connection with the acquisition of real property, other real estate-related investments or other capital needs, we intend       
 to invest the net proceeds of this offering in interest-bearing, short-term investment-grade securities, money-market accounts or           
 other investments that will not adversely affect our ability to qualify, or maintain our qualification, as a REIT.                          |

Assuming the maximum offering,
we estimate that we will receive net proceeds from the sale of shares of Series A Redeemable Preferred Stock in the offering of
approximately $443.75 million, after deducting estimated offering expenses, including selling commissions and the placement fee, payable
by us of approximately $56.25 million.

We will contribute the net proceeds of this offering
to our operating partnership in exchange for Series A Redeemable Preferred Units (as defined herein).

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We intend to use the net
proceeds of this offering for future acquisitions, investments in properties, and other general corporate and working capital purposes,
which may include the funding of capital improvements at our properties.

We intend to use prudent
amounts of leverage in connection with our operations. As of December 31, 2024, our total mortgage indebtedness was approximately
$260.6 million, and we had $121.0 million outstanding under our revolving credit facilities. Once we reach sufficient scale, we generally
expect our total indebtedness to be less than 75% of the fair market value of our real estate investments. However, we are not subject
to any limitations on the amount of leverage we may use, and accordingly, the amount of leverage we use may be significantly less or
greater than we currently anticipate. Further, during our ramp-up to scale, we expect that our leverage will fluctuate and for periods
of time will exceed 75% of the fair market value of our real estate investments as appropriate. For purposes of calculating our leverage,
we include our consolidated real estate investments, include our preferred equity and loan investments at cost, include assets we have
classified as held for sale, and include any joint venture level indebtedness in our total indebtedness.

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DISTRIBUTION POLICY</