Investment Disclaimer

Housing Grades LLC
Effective Date: April 1, 2026

PLEASE READ THIS DISCLAIMER CAREFULLY BEFORE USING THE HOUSING GRADES SERVICE.


Not Investment Advice

Housing Grades LLC ("Housing Grades," "we," "us") provides the Housing Grades platform as a quantitative real estate market research tool. All content, data, scores, ratings, rankings, analysis, and other information available through the Service (collectively, "Research") is provided for informational and educational purposes only.

The Research does not constitute and should not be construed as financial advice, investment advice, trading advice, real estate advice, legal advice, tax advice, or any other type of professional advice. Housing Grades LLC is not a registered investment adviser under the Investment Advisers Act of 1940 or any state securities law. We are not a licensed real estate broker, mortgage broker, financial planner, or attorney. Nothing in the Service creates a fiduciary relationship between Housing Grades LLC and any user.

No Recommendation to Buy or Sell

The conviction tiers, scores, rankings, and analysis provided through the Service — including but not limited to "High Conviction," "Watch," "Neutral," and "Low Conviction" designations — are quantitative research outputs generated by an automated rules-based model. They are not recommendations to purchase, sell, hold, rent, or avoid any specific property, real estate investment trust, real estate-related security, or any other investment or financial instrument.

A "High Conviction" designation for a ZIP code or metropolitan area does not mean that Housing Grades recommends investing in that market. It means that the ZIP code or market scored in the top percentile of our quantitative model based on the specific signals described in our methodology documentation. Whether any particular market is appropriate for your investment goals depends on your individual financial situation, risk tolerance, investment objectives, liquidity needs, tax circumstances, and other factors that our model does not and cannot assess.

Past Performance

Any backtested results, historical signal performance data, or track record information presented in the Service reflects the results of a model applied to historical data. Past model performance does not guarantee future results. Backtested results are inherently subject to look-ahead bias and overfitting risks. Real-world investment outcomes may differ materially from model outputs.

Data Limitations and Model Risk

The Research is generated using publicly available data from third-party sources including Redfin, HUD, the Federal Reserve, the U.S. Census Bureau, and others. We make reasonable efforts to ensure data accuracy, but we cannot guarantee that third-party data is complete, current, or free from errors. Data delays, reporting gaps, geographic mismatches, and other data quality issues may affect model outputs.

Our scoring model incorporates assumptions, weights, and thresholds that reflect our analytical judgment as of the model's development date. These assumptions may not hold in all market conditions. In particular:

  • Rental yield estimates are gross figures based on HUD Fair Market Rent (FMR) data. They do not account for vacancy rates, property management fees, maintenance and repair costs, property taxes, insurance, HOA fees, mortgage interest, or other carrying costs. Actual net yields may differ substantially from gross estimates.
  • Transaction price data is sourced from Redfin closed sale records and smoothed using a 4-quarter exponential moving average. Thin markets with few transactions may produce unreliable price signals.
  • Macro regime classification is updated quarterly and reflects national-level credit and rate conditions. Local market conditions may diverge significantly from national trends.
  • Exit liquidity signals are estimates based on days-on-market trends and transaction volume. They are not guarantees of your ability to sell a specific property at any particular price or timeframe.

Investment Risk

All real estate investment involves substantial risk. You may lose some or all of your invested capital. Real estate markets are subject to significant volatility driven by factors including but not limited to changes in interest rates, local employment conditions, population migration, zoning and regulatory changes, natural disasters, environmental conditions, and broader macroeconomic cycles. None of these factors are fully captured by any quantitative model, including ours.

Consult a Professional

Before making any real estate investment decision, you should consult with qualified professionals including a licensed real estate broker or agent familiar with the specific market, a financial advisor who understands your complete financial situation, a tax professional regarding the tax implications of real estate investment, and an attorney regarding any legal considerations.

No SEC Registration

Housing Grades LLC has not evaluated whether the Service constitutes investment advice subject to registration requirements under the Investment Advisers Act of 1940 or any state securities law. If you believe our Service may constitute investment advice applicable to your situation, please consult a securities attorney before subscribing.

Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, HOUSING GRADES LLC SHALL NOT BE LIABLE FOR ANY INVESTMENT LOSSES, LOST PROFITS, OR OTHER DAMAGES ARISING FROM YOUR RELIANCE ON THE RESEARCH PROVIDED THROUGH THE SERVICE. YOUR USE OF THE SERVICE AND RELIANCE ON ANY RESEARCH IS ENTIRELY AT YOUR OWN RISK.

Updates to This Disclaimer

We may update this disclaimer from time to time to reflect changes in our Service or applicable law. Material changes will be communicated to subscribers by email.

Contact

For questions about this disclaimer, contact us at:
Housing Grades LLC
Email: legal@housinggrades.com