Dear Prospective Investor:
Thank you for your interest in United Development Funding. Since our inception in 2003, we have enjoyed considerable success as a company by investing in all aspects of the home development cycle – from equity and land banking to mezzanine financing to first lien lending. Along the way, we have built a loyal and productive clientele of some of the most experienced homebuilders and developers in the residential real estate business.
We take pride in our company’s growth and reputation, in our continued success, and in the strong returns our funds have earned along the way, but we are even more proud of the relationship we share with our investors. We have always worked to ensure openness and transparency in our operations, to explain our market analysis and how it shapes our investment strategy, and to clearly communicate our intentions and goals to those involved with us. We hold these commitments carefully and confidently. In today’s investing climate, transparency, prudence, and a sound business model are paramount, and we are proud that we have consistently upheld these responsibilities to our investors. As you explore our company, we invite you to review our SEC filings, our publications, and our previous earnings reports; we welcome any questions you may have; and we look forward to working with you as you seek to diversify your portfolio with new, unique investments in residential real estate.
Hollis M. Greenlaw
Co-Founder and CEO
United Development Funding
Investing in our securities involves a high degree of risk. You should purchase our securities only if you can afford a complete loss of your investment. Please read and consider the risk factors in the prospectus/memorandum before purchasing any securities. The most significant risks include the following: absence of a public market for our securities and a lack of liquidity; lack of an operating history, established financing sources, or identification of future investments; dependence on our advisor to select our investments; reduced ability to diversify our investment portfolio if we raise substantially less than our maximum offering amount; ability to change the methods of implementing our investment policies without approval by our security holders; payment of substantial fees to our advisor and its affiliates; conflicts of interest facing us and our advisor and its affiliates; the potential incurrence of substantial debt; absence of any guarantee that you will receive distributions or a return of capital; and our ability to borrow, use offering proceeds, issue additional securities or sell assets in order to fund distributions.
Past performance is not indicative of future results. No UDF program can give any assurance that it will be able to pay or maintain distributions, or that distributions will increase over time. The amount of cash available for distributions will be affected by many factors, such as the ability to purchase or originate loans as offering proceeds become available, operating expense levels, as well as many other variables. Please consult the prospectus/memorandum for a complete discussion of risk factors which can affect distributions.