Risks

Risk Factors

There are numerous risk factors associated with this offering. See “RISK FACTORS” in the PPM. These risks include, but are not limited to, the following:

  • no public market currently exists for our Interests, and we have no current plans to list our Interests on a national securities exchange;
  • we have limited operating history;
  • we established the initial offering price of our Interests arbitrarily; this price is unrelated to the book or net value of our assets or to our expected operating income;
  • we may return a portion of your capital if our Advisor is unable to quickly identify suitable investments or if such investments do not generate sufficient cash to make anticipated distributions;
  • if we raise substantially less than the maximum offering, we may not be able to invest in a diversified portfolio of investments and your investment will be more susceptible to fluctuations in the values of specific individual investments;
  • we have no employees and are dependent upon our Advisor and its affiliates;
  • our officers, directors, and the officers and employees of our Advisor and its affiliates may have substantial conflicts of interest because they also serve similar programs sponsored by our Sponsor;
  • we will pay certain fees and expenses to our Advisor and its affiliates, which may increase the risk that you will not earn a profit on your investment;
  • the income from any of our investments will be dependent on the ability of our Advisor to successfully manage such investments;
  • following the termination of the Private Offering and our conversion to a Maryland corporation, if we do not qualify as a REIT, we will be treated as a corporation for federal income tax purposes;
  • our Advisor may face conflicts of interest relating to the purchase of investments, and such conflicts may not be resolved in our favor, which could adversely affect our investment opportunities; and
  • there are limits on the ownership, transferability and repurchase of Interests. Our mailing address is 10 East 40th Street, 42nd Floor, New York, NY 10016. Our telephone number is (212) 448-0702.

Important Notice

This website and the materials herein are directed only to accredited investors and to persons in jurisdictions where Prospect Credit REIT, LLC (“PCRED”) is authorized for distribution. Neither this website nor the materials herein constitute an offer to sell, which can only be made by means of a private placement memorandum (“PPM”). An investment in PCRED involves a high degree of risk, including the risk of a substantial loss of investment. Complete information about investing in PCRED is available in the PPM.