841501--3/29/2007--OWENS_MORTGAGE_INVESTMENT_FUND_A_CALIF_LTD

related topics

{loan, real, estate}

{investment, property, distribution}

{tax, income, asset}

{loss, insurance, financial}

{cost, regulation, environmental}

{condition, economic, financial}

{debt, indebtedness, cash}

Risks Associated with the Business of the Partnership Our Results are Subject to Fluctuations in Interest Rates and Other Economic Conditions Which Affect Yields Our Loans Permit Prepayment Which May Lower Yields Intense Competition in the Partnership s Business Affects Availability of Suitable Loans Interim Investments, Pending Investment in Suitable Mortgage Loans, Provide Lower Yields Geographical Concentration of Mortgages May Result in Additional Delinquencies Defaults on our mortgage loans will reduce our income and your distributions Investments in construction loans may be riskier than loans secured by operating properties Investments in loans secured by leasehold interests may be riskier than loans secured by fee interests in properties Investments in second, third and wraparound mortgage loans may be riskier than loans secured by first deeds of trust Larger Loans Result in Less Diversity and May Increase Risk Loans with Balloon Payments Involve a Higher Risk of Default Incorrect Original Collateral Assessment (Valuation) Could Result in Losses and Decreased Distributions to You Unexpected Declines in Values of Secured Properties Could Cause Losses in Event of Foreclosures and Decreased Distributions to You Equity or Cash Flow Participation in Loans Could Result in Loss of Secured Position in Loans Some Losses That Might Occur to Borrowers May Not be Insured and May Result in Defaults Proceeds of this Offering are Not Committed to Specific Loans Foreclosures Create Additional Ownership Risks Development on Property Acquired by the Partnership Creates Risks of Ownership a Lender Does Not Have Hazardous or Toxic Substances Could Impose Unknown Liabilities on the Partnership Partnership Borrowing Involves Risks if Defaults Occur and Your Distributions May Decrease Lack of Liquidity of Your Investment Increases its Risk No Free Tradability of Units Repurchase of Units by the Partnership is Restricted Limited Partners Have No Control Over Operations of the Partnership California law prevents limited partners from involvement in the conduct of our business. Removal or withdrawal of the General Partner could terminate the Partnership. Only the General Partner selects mortgage loans. The General Partner could choose loans with less favorable terms. The Partnership relies exclusively on the General Partner to originate or arrange loans to be invested in by the Partnership. The General Partner can change our investment objectives and controls the daily conduct of the Partnership s business. Payment of Fees to General Partner Maximum Compensation Not Received by General Partner General Partner Not Full Time Tax consequences can vary among investors. Your cash flow and distributions will be reduced if we are taxed as a corporation. If the Partnership were not engaged in a trade or business, your share of expense deductions would be reduced. If you finance the purchase of your Units, interest you pay might not be deductible An IRS audit of our return, books and records could result in an audit of your tax returns. Equity participation in mortgage loans may result in limited partners reporting taxable income and gains from these properties. Inconsistencies between federal, state and local tax rules may adversely affect your cash flow, if any, from investment in our Units. Unrelated business income of the Partnership would subject tax-exempt investors to taxation of Partnership income. An investment in the Partnership may not qualify as an appropriate investment under all retirement plans.

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841501--3/29/2007--OWENS_MORTGAGE_INVESTMENT_FUND_A_CALIF_LTD_PARTNERSHIP