Capital Square Denton BFR, LLC

There will be occasions when the Manager and its affiliates may encounter potential conflicts of interest in connection with the Fund and its Members and there is no independent dispute resolution mechanism in place to resolve such conflicts. Potential investors should be aware that an investment in the Fund involves a significant degree of risk.

An investment in investor units involves substantial risks including, but not limited to, the following risk factors:

• The Offering will be made on a “best efforts” basis with no minimum investment raise requirement.
• The various risks associated with acquiring, financing, owning, constructing, leasing and operating single-family rental communities located in Denton, Texas.
• The investor units do not represent a diversified investment because the Fund’s activities will be limited to the Property.
• Although Capital Square and its affiliates have extensive experience in acquiring, developing, improving and operating multi-family and commercial real estate, this is Capital Square’s first offering involving a single-family rental community. In addition, the Fund and the Manager were recently organized and do not have a significant operating history or significant assets.
• Investors will rely solely on the Manager to manage the Fund and the partners to manage the Property; the partners will have broad discretion to make decisions regarding the Property.
• Real estate development is an inherently risky activity.
• The Fund may not make capital distributions until the sale or refinancing of the Property, if at all.
• Real estate-related investments involve substantial risks.
• The Fund will pay substantial fees to Good + West Residential, Montgomery Street Partners, the Manager and their affiliates.
• The investor units will be highly illiquid; transferability of the investor units is restricted and withdrawals of capital contributions are prohibited.
• Substantial actual and potential conflicts of interest exist among the Fund, the Manager, Capital Square and their affiliates.
• An investor could lose all or a substantial portion of his investment in the Fund.
• Private placements are speculative.