Contact an Advisor About Non-Traded REITs What is a Non-Traded Real Estate Investment Trust (REIT)? A non-traded REIT is a form of real estate investment tool that can reduce taxes by providing potential distributions that are partially tax favored. Non-traded REITs are typically owned by a company that owns and operates income-producing real estate, or related assets, companies that help people buy or sell their home, similar to the we buy houses companies. These assets may include commercial office buildings, shopping malls, multi-family housing, hotels/motels, resort property, storage units, warehouses, and mortgages. Unlike many real estate companies, a non-traded REIT does not develop real estate properties for resale. Instead, a non-traded REITs buy and develop property primarily to operate them as part of its own investment portfolio, all of this with the use of a start engine investment. You can consult with real estate brokers in order to find out more about REIT. How Non-Traded REITs Work Non-Traded Real Estate Investment Trusts (Non-Traded REITs) are a way to invest in commercial real estate without a large outlay of capital, or assuming the majority of the investment risk, as you would if you were to purchase commercial property in a traditional real estate transaction. Characteristics of a Non-Traded REITs Since Non-Traded REITs are not traded on a secondary market, a Non-Traded REIT can behave more like a direct real estate investment, and their share price value does not change as frequently as a publicly traded stock. Although a Non-Traded REIT is not traded on an exchange its value can still be affected by economic changes, real estate market changes, and changes in interest rates. Also, the values of underlying properties will fluctuate and may be worth more or less than than initially paid. Additionally, there is no guarantee the investment objectives will be met; therefore, if you are looking to buy a property we suggest to do it now. Investing in non-traded REITs, like Hartman vREIT XXI, Inc., involves a high degree of risk. You should carefully review the “Risk Factors” section of the prospectus for Hartman vREIT XXI, Inc., which contains a detailed discussion of the material risks that you should consider before you invest in shares of our common stock. REIT Benefits Potential distributions Tax favored treatment of a portion of the dividend Professional Management Lower-correlation to stocks /bonds Diversification of holdings can reduce portfolio volatility Who Should Invest in Non-Traded Real Estate Investment Trusts (REITs) NTRs Provide Access to Potential Benefits of Commercial Real Estate Individual investors are rarely able to acquire a portfolio of commercial real estate properties on their own. But with a REIT, they can cash home buyers in the growth and income potential of commercial real estate without owning properties directly. A REIT (traded or non-traded) allows individual investors to indirectly invest in commercial real estate because the REIT pools capital from multiple investors to buy income-producing buildings. Are Non-Traded REITs Right for You? Non-traded REITs may be an attractive investment if any of the following apply to your situation: You seek to take advantage of a professional team from we buy houses Sacramento services work so well they manages daily operations of the properties You seek to diversify your investments outside of traditional stocks and bonds Non-traded REITs do not require a large amount of capital to invest; non-qualified accounts start at just $10,000, while qualified accounts begin at just $5,000 Key Difference in Non-Traded REITs Note that an investment in non-traded REITs and Hartman vREIT XXI, Inc. (Hartman vREIT XXI) differs from an investment in direct real estate. For instance, an investment in direct real estate pays income from the cash flow from the properties. Hartman vREIT XXI may pay distributions from cash flow from operations of the properties the REIT owns, as well as from other sources, including borrowings and offering proceeds, which constitute a return of principal and may lower returns. The availability and timing of distributions Hartman vREIT XXI may pay is uncertain and cannot be assured. Additionally, Hartman vREIT XXI is subject to significant fees and expenses, which may lower returns. Remember, non-traded REITs, like an investment in direct real estate,do not provide ready liquidity, and if investors are able to redeem shares, the redemption price may be worth less than their original investment. How Are REIT Dividends Treated for Tax Purposes? Dividends from Non-Traded REITs can be allocated as ordinary income, capital gains, or return of capital. A return of capital distribution is defined as that part of the dividend that exceeds the REIT’s taxable income. A return of capital distribution is not taxed as ordinary income. Rather, the investor’s cost basis in the stock is reduced by the amount of the distribution. When shares are sold, the excess of the net sales price over the reduced tax basis is treated as a capital gain for tax purposes. So long as the appropriate capital gains rate is less than the investor’s marginal ordinary income tax rate, a high return of capital distribution may be attractive. Each investor’s tax situation is different, please consult with a financial advisor for more information on understanding REIT dividends and their tax obligations. Source www.reit.com Investing in non-traded REITs, like Hartman vREIT XXI, Inc., involves a high degree of risk. You should carefully review the “Risk Factors” section of the prospectus for Hartman vREIT XXI, Inc., which contains a detailed discussion of the material risks that you should consider before you invest in shares of our common stock. RESOURCES Prospectus Risk Considerations Forms REIT EDUCATION About Non-Traded REITs Glossary of REIT Terms NEWS & EVENTS News Webinars Events CONTACT Hartman Income REIT c/o Hartman Advisors II, LLC 2909 Hillcroft, Suite 420 Houston, Texas 77057 713-467-2222 800-880-2212 1 Hartman Income REIT Management, Inc. and its affiliates. Results are not guaranteed. Past performance is not indicative of future results. Please refer to the Prospectus or Private Placement Memorandum for more information and important disclosures. THE CONTENTS OF THIS WEBSITE CONSTITUTE NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY; OFFERS CAN BE MADE ONLY BY THE PROSPECTUS OR PRIVATE PLACEMENT MEMORANDUM. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS OR PRIVATE PLACEMENT MEMORANDUM IN ORDER TO FULLY UNDERSTAND ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS OR PRIVATE PLACEMENT MEMORANDUM MUST BE MADE AVAILABLE TO YOU IN CONJUNCTION WITH ANY OFFERING. NO OFFERING IS MADE EXCEPT BY A PROSPECTUS FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. NEITHER THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE REGULATORS HAVE PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL. SECURITIES OFFERED THROUGH D.H. HILL SECURITIES, LLLP, MEMBER FINRA/SIPC, 1543 GREEN OAK PLACE, SUITE 100, KINGWOOD, TX 77339 Performance Not Guaranteed: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance. 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