Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 86

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 86
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We may acquire properties
or investments from Bluerock, our Manager, directors or officers, or their respective affiliates. The prices we pay for such properties
will not be the subject of arm’s-length negotiations, which means that the acquisitions may be on terms less favorable to us than
those negotiated in an arm’s-length transaction. Even though we expect to use an independent third-party appraiser to determine
fair market value when acquiring properties from our Manager and its affiliates, we may pay more for particular properties than we would
have in an arm’s-length transaction, which would reduce our cash available for investment in other properties or distribution to
our stockholders.

If we internalize our management functions, we could incur other significant costs associated with being self-managed.

At any time, our board of
directors may, but is not obligated to, pursue the internalization of the functions performed for us by our Manager through the acquisition
of our Manager or similar transaction through which we would bring onboard our Manager’s management team. The method by which we
could internalize these functions could take many forms, and may require agreement with the Manager. While we believe that there may
be substantial benefits to internalization of management functions at the appropriate time, there is no assurance that internalization
will be beneficial to us and our stockholders, and internalizing our management functions could reduce earnings per share and funds from
operation per share. For example, we may not realize the perceived benefits or we may not be able to properly integrate a new staff of
managers and employees or we may not be able to effectively replicate the services provided previously by our Manager or its affiliates.
Internalization transactions involving the internalization of managers affiliated with entity sponsors have also, in some cases, been
the subject of litigation. Even if these claims are without merit, we could be forced to spend significant amounts of money defending
claims which would reduce the amount of funds available for us to invest in properties or other investments to pay distributions. All
these factors could have a material adverse effect on our results of operations, financial condition and ability to pay distributions.

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RISKS RELATED TO THE SEPARATION AND DISTRIBUTION

Bluerock Residential may fail to perform under various transaction agreements executed as part of the Separation.

In connection with the Separation
and prior to the Distribution, we, Bluerock Residential, and certain other parties entered into the Separation and Distribution Agreement
and various other agreements, including