UDF ADVANTAGE

building

THE INVESTMENT ADVANTAGE

At a time when many investors are looking for ways to diversify their portfolios, while maintaining the potential for strong earnings, UDF has built a series of investment vehicles designed to offer the best of both worlds – alternative investments in residential real estate crafted to match the various needs of the housing industry throughout the oscillations of the business cycle.* Each of these vehicles capitalizes on a different stage of the housing cycle, from peak to bottom to peak again. Throughout the cycle, homebuilders and developers have different needs that must be met in order to continue profitable operations; needs ranging from land and finished lots to mezzanine debt to bankruptcy relief to first-lien mortgages. UDF provides diversified and flexible financial solutions to our developer and homebuilding clients to allow them to successfully navigate the housing cycle.

*There is no guarantee that UDF will be able to take advantage of the various needs of the housing industry throughout the oscillations of the business cycle.

LEADERSHIP ADVANTAGE

The UDF management team has decades of experience in finance, residential and commercial development, municipality negotiations, tax law, politics, and market involvement. Such breadth of experience allows us to enter into advantageous transactions in which many lenders would be unable to participate. Further, we are constantly reevaluating our economic data analysis and the prism through which we monitor market fundamentals to ensure that we have every relevant bit of information available to us. As a result, we are confident both in our ability to move quickly to secure financing for a project as well as in our understanding of market conditions.

THE KNOWLEDGE ADVANTAGE

We at UDF believe that in our business today’s headlines should be yesterday’s news to us. We pride ourselves on accurately anticipating the market’s movements through our exhaustive research, trend analysis, and data mining. We believe that it is both our knowledge pool and our ability to identify potential future concerns that consistently places UDF at the forefront of industry analysis and strategies. We are constantly challenging our positions and assumptions and fine-tuning our business model to reflect the economic conditions on the ground. This proactive and continuous self-reflection helps us to mitigate the inherent risk in investing and capitalize on advantageous opportunities at strategic moments.

Risk Factors

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.