RVEN Reven Housing REIT Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): July 22, 2014

 

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REVEN HOUSING REIT, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

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Maryland		000-54165		84-1306078
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

 

7911 Herschel Avenue, Suite 201 La Jolla, CA 92037

(Address of principal executive offices)

 

(858) 459-4000

(Registrant’s telephone number, including area code)

 

Not applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions.

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14d-2(b)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)

  

 

Item 1.01 Entry into a Material Definitive Agreement.

 

Memphis 60 Purchase and Sale Agreement

 

Reference is made to the Form 8-K filed on April 29, 2014, the Form 8-K filed on June 4, 2014, the Form 8-K filed on June 24, 2014, and the Form 8-K filed on July 7, 2014, by Reven Housing REIT, Inc. (the “Company”), which reported the entry by the Company into that certain Single Family Homes Real Estate Purchase and Sale Agreement dated April 24, 2014, as amended on May 31, 2014, June 19, 2014, and June 30, 2014 (the “Memphis 60 Agreement”), with H&J Properties, LLC, a Tennessee limited liability company, Memphis Cash Flow, GP, a Tennessee general partnership, and Equity Trust Company Custodian FBO Hulet T. Gregory IRA Z108673 (collectively, the “Memphis 60 Sellers”), to purchase a portfolio of up to 60 single-family homes located in Memphis, Tennessee, from the Memphis 60 Sellers, and which provided a description of the materials terms of the Memphis 60 Agreement.

 

On July 22, 2014, the Company, Reven Housing Tennessee, LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (the “Buyer”), and Memphis 60 Sellers entered into a Fourth Amendment to Single Family Homes Real Estate Purchase and Sale Agreement (the “Memphis 60 Amendment”), pursuant to which the parties amended the Memphis 60 Agreement (i) to assign the Company’s rights and interest in the Memphis 60 Agreement to the Buyer, and (ii) to delay the purchase of nine homes subject to the Memphis 60Agreement until such time as the homes are leased under certain conditions. If one or more of such homes are not leased under the specified conditions within 60 days after the date of the Memphis 60 Amendment, then the Buyer may elect not to proceed with the purchase of such homes.

 

The foregoing description of the Memphis 60 Amendment is qualified in its entirety by reference to the full text of the Memphis 60 Amendment, which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.

 

Memphis 14 Purchase and Sale Agreement

 

Reference is made to the Form 8-K filed on June 10, 2014, by the Company, which reported the entry by the Company into that certain Single Family Homes Purchase and Sale Agreement (the “Memphis 14 Agreement”) with Highmark Investors, LLC, a Tennessee limited liability company (the “Memphis 14 Seller”), to purchase a portfolio of up to 14 single-family homes from the Seller, of which 13 homes are located in Memphis, Tennessee, and one home is located in Southaven, Mississippi, and which provided a description of the material terms of the Memphis 14 Agreement.

 

On July 22, 2014, the Company, the Buyer and the Memphis 14 Seller entered into a First Amendment to Single Family Homes Real Estate Purchase and Sale Agreement (the “Memphis 14 Amendment”), pursuant to which the parties amended the Memphis 14 Agreement (i) to assign the Company’s rights and interest in the Memphis 14 Agreement to the Buyer, and (ii) to delay the purchase of four properties in Memphis subject to the Memphis 14 Agreement until such time as certain conditions relating to the leases and rent payments of the homes have been met. If such conditions are not met within a maximum of 60 days after the date of the Memphis 14 Amendment, then the Buyer may elect not to proceed with the purchase of such homes.

 

 

The foregoing description of the Memphis 14 Amendment is qualified in its entirety by reference to the full text of the Memphis 14 Amendment, which is attached hereto as Exhibit 10.2 and is incorporated herein by reference.

 

Item 2.01 Completion of Acquisition or Disposition of Assets.

 

Memphis, Tennessee

 

On July 28, 2014, the Buyer closed on the acquisition of 51 properties located in Memphis, Tennessee, pursuant to the Memphis 60 Agreement, as amended. The description of the Memphis 60 Agreement and the Memphis 60 Amendment in Item 1.01 above is incorporated herein by reference. The Memphis 60 Sellers do not have a material relationship with the Company and the acquisition was not an affiliated transaction. The contract purchase price for the 51 acquired properties was $4,131,800, exclusive of closing costs. The Company funded 100% of the purchase with cash. The 51 acquired properties average 1,811 square feet and are mostly three-bedroom two bath homes. Of the acquired properties, 34 are currently subject to one-year leases, three are subject to two-year leases, one is subject to a three-year lease and 13 properties are subject to month-to-month leases.

 

Additionally, on July 28, 2014, the Buyer closed on the acquisition of 10 properties, of which nine are located in Memphis, Tennessee, and one is located in Mississippi, pursuant to the Memphis 14 Agreement, as amended. The description of the Memphis 14 Agreement and the Memphis 14 Amendment in Item 1.01 above is incorporated herein by reference. The Memphis 14 Seller does not have a material relationship with the Company and the acquisition was not an affiliated transaction. The contract purchase price for the 10 acquired properties was $631,000, exclusive of closing costs. The Company funded 100% of the purchase with cash. The 10 acquired properties average 1,525 square feet and are mostly three-bedroom, two bath homes. Of the acquired properties, nine are currently subject to one-year leases and one property is subject to a month-to-month lease.

 

The Company issued a press release regarding the acquisition of the Memphis, Tennessee, portfolios on July 28, 2014, a copy of which is filed herewith as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits.

 

(a)           Financial Statements of Real Estate Acquired. Since it is impracticable to provide the required financial statements of the acquired real property describe in Item 2.01 at the time of this filing and no financials (audited or unaudited) are available at this time, the Company hereby confirms that it intends to file the required financial statements on or before October 11, 2014, by amendment to this Form 8-K.

 

(b)          Pro Forma Financial Information. See paragraph (a) above.

 

(d)          Exhibits.

 

The following exhibits are filed with this report:

 

Exhibit 10.1	Fourth Amendment to Single Family Homes Real Estate Purchase and Sale Agreement (Memphis 60).
Exhibit 10.2	First Amendment to Single Family Homes Real Estate Purchase and Sale Agreement (Memphis 14).
Exhibit 99.1	Press release dated July 28, 2014, announcing the acquisition of the Memphis, Tennessee, portfolios.

 

 

SIGNATURES

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	REVEN HOUSING REIT, INC.
Dated: July 28, 2014	/s/  Chad M. Carpenter
	Chad M. Carpenter
	Chief Executive Officer

 

 

Exhibit 10.1

 

 

FOURTH AMENDMENT TO

SINGLE FAMILY HOMES REAL ESTATE PURCHASE AND SALE AGREEMENT

  

THIS FOURTH AMENDMENT TO SINGLE FAMILY HOMES REAL ESTATE PURCHASE AND SALE AGREEMENT (this "Fourth Amendment") is made as of July 22, 2014 by and among H&J PROPERTIES, LLC, a Tennessee limited liability company, and MEMPHIS CASH FLOW, GP, a Tennessee general partnership, and EQUITY TRUST COMPANY CUSTODIAN FBO HULET T. GREGORY IRA Z108673 (collectively, “Seller”) and REVEN HOUSING TENNESSEE, LLC, a Delaware limited liability company (“Buyer”) as assignee of REVEN HOUSING REIT, INC., a Maryland corporation, with reference to the following recitals:

 

RECITALS

 

A.           Whereas, H & J Properties, LLC (“Original Seller”) and Reven Housing REIT, Inc., a Maryland corporation (“Original Buyer”) entered into that certain Single Family Homes Real Estate Purchase and Sale Agreement dated April 24, 2014 (“Agreement”) pursuant to which Original Seller agreed to sell and Original Buyer agreed to purchase from Original Seller, forty-eight (48) single family homes in the city of Memphis, Tennessee.

 

B.           Whereas, Original Seller and Original Buyer executed the First Amendment to Single Family Homes Real Estate Purchase and Sale Agreement on May 31, 2014 (the “First Amendment”) to amend the Agreement to increase the number of homes sold by Original Seller and Purchased by Original Buyer to sixty-one (61) homes, to increase the Purchase Price, and to extend the Due Diligence Period.

 

C.           Whereas, Original Seller and Original Buyer executed the Second Amendment to Single Family Homes Real Estate Purchase and Sale Agreement on June 19, 2014 (the “Second Amendment”) to again amend the Agreement to extend the Due Diligence Period and to change certain of the homes constituting the Property.

 

D.           Whereas, Original Seller and Original Buyer executed the Third Amendment to Single Family Homes Real Estate Purchase and Sale Agreement on June 30, 2014 (the “Third Amendment”) to again amend the Agreement to add two (2) seller entities, to again extend the Due Diligence Period, to create an Escrow Holdback, to adjust the Purchase Price, and to change certain of the homes constituting the Property such that the Property now consists of sixty (60) homes.

 

E.           Whereas, Seller and Buyer have agreed to further amend the Agreement to assign Original Buyer’s interest in the Agreement to Buyer, to provide notice of Buyer’s intent to Close, and to delay the purchase of nine (9) of the homes constituting the Property.

 

NOW THEREFORE, in consideration of the mutual agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller hereby agree as follows:

  

  

AGREEMENT

 

1.          Definitions. All initially-capitalized terms used in this Fourth Amendment without definition shall have the meanings given such terms in the Agreement and the amendments thereto.

 

2.          Buyer’s Intent to Close. Pursuant to Section 7 of the Agreement, and subject to the terms of this Fourth Amendment, Buyer hereby notifies Seller of Buyer’s election to purchase the Property. Buyer’s Deposit shall be non-refundable to Buyer except in the event of a Default by Seller or breach of the Agreement by Seller.

 

3.          Assignment. Pursuant to Agreement Section 22(g), Original Buyer hereby assigns its interest in the Agreement to Buyer.

 

4.          Delayed Purchase. The nine (9) homes listed on the document attached hereto as Exhibit J (collectively, the “Delayed Homes”) will not be part of the Closing and may instead be purchased individually or collectively by Buyer if Seller is able to lease such homes as described herein. Accordingly, the sum of Five Hundred Ninety Four Thousand and 00/100 Dollars ($594,000.00) from the Purchase Price (the “Delayed Homes Holdback”) shall be held by the Escrow Holder as described in this Section. Subject to Section 5 below, Buyer shall instruct Escrow Holder to release funds equal to the Assigned Home Price for each of the Delayed Homes listed on Exhibit J which Buyer deems to have been leased according to the following criteria: (i) Seller has received a security deposit of at least one (1) month’s rent, (ii) a tenant has signed a lease agreement with a move-in date not more than fifteen (15) days from the date of such lease agreement, (iii) the monthly rental for each home is not less than the minimum monthly rental listed for such home in Exhibit J, and (iv) the home is occupied by such lessee. Seller shall provide sufficient back up documentation reasonably satisfactory to Buyer to demonstrate that such conditions have been satisfied.

 

5.          Delayed Purchase Outside Date. Seller shall have sixty (60) days from the date of this Fourth Amendment to lease up the Delayed Homes as described in Section 4 above. If upon the expiration of such sixty (60) day period Seller has failed to lease up one or more of the Delayed Homes as described in Section 4 above, Buyer shall have the option to purchase such homes at the aggregate Assigned Home Price for such homes by giving Seller written notice of Buyer’s intent to purchase such homes not later than five (5) days after the expiration of such sixty (60) day period. If Buyer does not give Seller such notice as described herein, Escrow Holder shall return to Buyer all of Buyer’s Delayed Homes Holdback funds in Escrow Holder’s custody at that time, and Buyer shall be relieved of its obligation to purchase the Delayed Homes, and Buyer and Seller shall be relieved of all obligations to each other, except for such obligations which expressly survive the Agreement, the First Amendment, the Second Amendment, the Third Amendment, and the Fourth Amendment.

 

  

6.          Return of Delayed Homes Holdback. If Seller has not leased the Delayed Homes as described in this Fourth Amendment within the sixty (60) day period allotted to Seller for such leasing, all remaining Delayed Homes Holdback funds not already spent on the Delayed Homes shall immediately be refunded by Escrow Holder to Buyer upon the expiration of such sixty (60) day period.

 

7.          Governing Law. This Fourth Amendment shall be governed by the laws of the State of Tennessee.

 

8.          Full Force and Effect. Except as modified herein, Buyer and Seller agree and affirm that the Agreement remains in full force and effect.

 

9.          Counterparts. This Fourth Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. An electronically transmitted counterpart of this Fourth Amendment shall constitute an original for all purposes.

 

10.         Miscellaneous. This Fourth Amendment, together with the First Amendment, Second Amendment, Third Amendment, and the Agreement, sets forth the entire agreement between the parties with respect to the subject matter set forth herein and therein and may not be modified, amended or altered except by subsequent written agreement between the parties. In case of any inconsistency between the provisions of this Fourth Amendment, the First Amendment, the Second Amendment, the Third Amendment, and the Agreement, the provisions of this Fourth Amendment shall govern and control. This Fourth Amendment shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective successors and assigns, if any.

  

[Remainder of this page deliberately left blank]

 

  

IN WITNESS WHEREOF, Buyer and Seller have caused this Fourth Amendment to be duly executed on their behalfs as of the day and year first stated above.

  

	SELLER
	H&J PROPERTIES, LLC, a Tennessee limited liability company
	By:	/s/ Hulet T. Gregory
	Name: Hulet T. Gregory
	Its:	Chief Manager
	MEMPHIS CASH FLOW, GP, a Tennessee general partnership
	By:	/s/ Hulet T. Gregory
	Name: Hulet T. Gregory
	Its:	President
	EQUITY TRUST COMPANY CUSTODIAN FBO HULET T. GREGORY IRA Z108673
	By:	/s/ Hulet T. Gregory
	Name: Hulet T. Gregory
	Its:
	BUYER
	REVEN HOUSING TENNESSEE, LLC, a Delaware limited liability company
	By:	/s/ Thad L. Meyer
		Thad L. Meyer
		Chief Financial Officer

 

  

	ORIGINAL BUYER
	Reven HOUSING REIT, INC., a Maryland corporation
	By:	Thad Meyer
		Thad Meyer
		Chief Financial Officer

 

 

Exhibit 10.2

 

 

FIRST AMENDMENT TO

SINGLE FAMILY HOMES REAL ESTATE PURCHASE AND SALE AGREEMENT

 

THIS FIRST AMENDMENT TO SINGLE FAMILY HOMES REAL ESTATE PURCHASE AND SALE AGREEMENT (this "First Amendment") is made as of July 22, 2014 by and among HIGHMARK INVESTORS, LLC, a Tennessee limited liability company (“Seller”) and REVEN HOUSING TENNESSEE, LLC, a Delaware limited liability company (“Buyer”) as assignee of REVEN HOUSING REIT, INC., a Maryland corporation, with reference to the following recitals:

 

RECITALS

 

A.           Seller and Reven Housing REIT, Inc., a Maryland corporation (“Original Buyer”) entered into that certain Single Family Homes Real Estate Purchase and Sale Agreement dated June 5, 2014 (“Agreement”) pursuant to which Seller agreed to sell and Original Buyer agreed to purchase from Seller, fourteen (14) single family homes in the city of Memphis, Tennessee (collectively, the “Property”).

 

B.           Seller and Buyer have agreed to amend the Agreement to delay the purchase of four (4) homes, assign Original Buyer’s interest in the Agreement to Buyer, to provide notice of Buyer’s intent to Close, and to list the repairs covered by the Purchase Price Holdback.

 

NOW THEREFORE, in consideration of the mutual agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller hereby agree as follows:

 

AGREEMENT

 

1.          Definitions. All initially-capitalized terms used in this First Amendment without definition shall have the meanings given such terms in the Agreement.

 

2.          Buyer’s Intent to Close. Pursuant to Section 7 of the Agreement, and subject to the terms of this First Amendment, Buyer hereby notifies Seller of Buyer’s election to purchase the Property. Buyer’s Deposit shall be non-refundable to Buyer except in the event of a Default by Seller or breach of the Agreement by Seller.

 

3.          Assignment. Pursuant to Agreement Section 22(g), Original Buyer hereby assigns its interest in the Agreement to Buyer.

 

4.          Exhibit A. Exhibit A attached to the Agreement is hereby deleted in its entirety and is replaced with the document attached hereto as Exhibit A.

 

 

5.          Delayed Purchase. The properties identified as 3483 McKenzie, 6860 Rockingham, 2882 Cottonwood, and 3708 Crosswood on Exhibit A attached hereto (collectively, the “Delayed Homes”) will not be part of the Closing and may instead be purchased by Buyer if Seller provides Buyer with back-up documentation reasonably acceptable to Buyer showing that the lessee in the Delayed Home has become current on rent. In the event that a Delayed Home becomes vacant and subject to Section 6 below, Buyer shall instruct Escrow Holder to release funds equal to the Assigned Home Value for each of the Delayed Homes listed on Exhibit A attached hereto which Buyer deems to have been leased according to the following criteria: (i) Seller has received a security deposit of at least one (1) month’s rent, (ii) a tenant has signed a lease agreement with a move-in date not more than fifteen (15) days from the date of such lease agreement, (iii) the monthly rental for each home is not less than the minimum monthly rental listed for such home in Exhibit A, and (iv) the home is occupied by such lessee. Seller shall provide sufficient back-up documentation reasonably satisfactory to Buyer to demonstrate that such conditions have been satisfied. Accordingly, the sum of Two Hundred Twenty Nine Thousand and 00/100 Dollars ($229,000.00) from the Purchase Price (the “Delayed Home Holdback”) shall be held by the Escrow Holder as described in this Section. Buyer shall instruct Escrow Holder to release funds equal to the Delayed Home Holdback if the Delayed Home’s lessee is brought current on rent or a new lease is signed within the time period referenced in Section 6 below.

 

6.          Delayed Purchase Outside Date. Seller shall have thirty (30) days from the date of this First Amendment to bring the Delayed Home’s lessee current on rent as described in Section 5 above or sixty (60) days from the date of this First Amendment to lease up the Delayed Homes as described in Section 5 above. If upon the expiration of such thirty (30) or sixty (60) day period Seller has failed to bring the Delayed Home’s lessee current on rent or lease up a Delayed Home as described in Section 5 above, Buyer shall have the option to purchase the Delayed Home at the Delayed Home Holdback price by giving Seller written notice of Buyer’s intent to purchase such homes not later than five (5) days after the expiration of such thirty (30) or sixty (60) day period. If Buyer does not give Seller such notice as described herein, Escrow Holder shall return to Buyer all of Buyer’s Delayed Home Holdback funds in Escrow Holder’s custody at that time, Buyer shall be relieved of its obligation to purchase the Delayed Home, and Buyer and Seller shall be relieved of all obligations to each other, except for such obligations which expressly survive the Agreement and the First Amendment.

 

7.          Escrow Repair Holdback. The Purchase Price Escrow Repair Holdback amount of Forty Three Thousand and 00/100 Dollars ($43,000.00) shall be withheld by the Escrow Holder until such time as Seller has completed all repairs to the homes identified in the attached Exhibit I (the “Holdback Repairs”) to Buyer’s reasonable satisfaction. Such Holdback Repairs shall be completed by Seller, at Seller’s sole cost and expense, not later than thirty (30) days after Closing (the “Holdback Repair Period”). Seller shall provide to Buyer invoices and related back-up documentation reasonably acceptable to Buyer pertaining to all Holdback Repairs, as well as photographs reasonably acceptable to Buyer depicting each and every item to be repaired before such repair has begun and after such repair has been completed. Purchase Price Holdback funds shall remain held by the Escrow Holder until Holdback Repairs are completed to Buyer’s reasonable satisfaction. Upon the end of the Holdback Repair Period or sooner upon Buyer’s election, Buyer shall review the status of the Holdback Repairs and, if any repairs have been completed to Buyer’s reasonable satisfaction, Buyer shall at that time instruct the Escrow Holder to release funds pertaining to such completed repairs as listed in Exhibit I to this First Amendment. If after Buyer’s review of the Holdback Repairs Buyer determines that all of the Holdback Repairs have been completed during the Holdback Repair Period, any Purchase Price Escrow Repair Holdback funds remaining in Escrow Holder’s custody shall be released to Seller.

 

 

8.          Governing Law. This First Amendment shall be governed by the laws of the State of Tennessee.

 

9.          Full Force and Effect. Except as modified herein, Buyer and Seller agree and affirm that the Agreement remains in full force and effect.

 

10.         Counterparts. This First Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. An electronically transmitted counterpart of this First Amendment shall constitute an original for all purposes.

 

11.         Miscellaneous. This First Amendment, together with the Agreement, sets forth the entire agreement between the parties with respect to the subject matter set forth herein and therein and may not be modified, amended or altered except by subsequent written agreement between the parties. In case of any inconsistency between the provisions of the First Amendment and the Agreement, the provisions of this First Amendment shall govern and control. This First Amendment shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective successors and assigns, if any.

 

[Remainder of this page deliberately left blank]

 

 

IN WITNESS WHEREOF, Buyer and Seller have caused this First Amendment to be duly executed on their behalfs as of the day and year first stated above.

 

	SELLER
	HIGHMARK INVESTORS, LLC, a Tennessee limited liability company
	By:	/s/ Jeffrey King
	Name:	Jeffrey King
	Its:	Member
	BUYER
	REVEN HOUSING TENNESSEE, LLC, a Delaware limited liability company
	By:	/s/ Thad Meyer
		Thad Meyer
		Chief Financial Officer
	ORIGINAL BUYER
	Reven HOUSING REIT, INC., a Maryland corporation
	By:	Thad Meyer
		Thad Meyer
		Chief Financial Officer

 

 

Exhibit 99.1

 

 

Reven Housing REIT Acquires Portfolios in Memphis, Tennessee

 

La Jolla, California, July 28, 2014 – Reven Housing REIT, Inc. ("Reven" or the "Company") (OTCBB: RVEN) today announced that it has acquired two portfolios totaling 61 single-family homes in Memphis, Tennessee, with one home just across the border in Mississippi. The aggregate purchase price for the two portfolios was $4,762,800, exclusive of closing costs. The Company funded 100% of the purchase with cash. The acquired properties average 1,784 square feet and are mostly three-bedroom, two bath homes. Of the acquired properties, 43 are currently subject to one-year leases, four are subject to multi-year leases and the remaining 14 properties are subject to month-to-month leases.

 

Chad M. Carpenter, Chairman and Chief Executive Officer of Reven, commented, “We are very pleased with our acquisition of the portfolios in Memphis as we continue to execute our business plan. Reven currently owns 284 homes in four metropolitan markets that we have evaluated and identified as market opportunities – first in Atlanta, Georgia, and Houston, Texas, and just a couple of weeks ago, in Jacksonville, Florida, and now in Memphis, Tennessee.”

 

 

Additional information regarding the acquisition of the Memphis portfolios can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 28, 2014.

 

About Reven Housing REIT, Inc.

Reven Housing REIT is engaged in the acquisition, ownership and operation of portfolios of leased single-family homes in the United States. Reven operates its portfolio properties as single-family rentals, or SFRs, and it generates most of its revenue from rental income of the existing tenants of the SFRs that Reven has acquired. Reven’s business plan involves acquiring portfolios of rented houses from investors who have bought them low, fixed and rented them; and generating current income from profits from rentals and appreciation of houses. Reven intends to take all necessary steps to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code, as amended. However, no assurance can be given that it will qualify or remain qualified as a REIT.

 

Forward Looking Statement

This press release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events and similar expressions. Forward-looking statements may be identified by use of words such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” or “potential” or similar words or phrases which are predictions of or indicate future events or trends. Statements such as those concerning potential acquisition activity, investment objectives, strategies, opportunities, other plans and objectives for future operations or economic performance are based on the Company’s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Any of these statements could prove to be inaccurate and actual events or investments and results of operations could differ materially from those expressed or implied, including the ability of the Company to qualify and operate as a REIT. To the extent that the Company’s assumptions differ from actual results, the Company’s ability to meet such forward-looking statements, including its ability to invest in a diversified portfolio of quality real estate investments and to qualify and operate as a REIT, may be significantly and negatively impacted. You are cautioned not to place undue reliance on any forward-looking statements and the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, future events or other changes. Please refer to Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on for the year ended December 31, 2013 filed with the SEC on March 25, 2014, and subsequently filed SEC reports, for further information.

 

For More Information, Contact:

 

Cole Carpenter

Reven Housing REIT, Inc.

7911 Hershel Ave., #201

La Jolla, California 92037

(858) 459-4000