Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 38

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 38
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 insurance, the sale may be rescinded,
and we may be unable to recover our purchase price, resulting in a complete loss. Title insurance obtained subsequent to purchase offers
little protection against discoverable defects because they are typically excluded from such policies. In addition, any title insurance
on a property, even if acquired, may not cover all defects or the significant legal costs associated with obtaining clear title.

Any of these risks could adversely
affect our operating results, cash flows, and ability to make distributions to our stockholders.

We are subject to certain risks associated with bulk portfolio acquisitions and dispositions.

We have acquired and disposed
of, and may continue to acquire and dispose of, properties we acquire or sell in bulk from or to other owners of residential properties,
banks, and loan servicers. When we purchase properties in this manner, we often do not have the opportunity to conduct 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