– 22 – ERC Communities

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Legal Disclaimer

The offering will be made only by means of an offering circular. An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that ERC Communities 1, Inc. may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. The securities offered by ERC Communities 1, Inc. are highly speculative. Investing in shares of common stock of ERC Communities 1, Inc. involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. You may obtain a copy of the Form 1-A offering circular that is part of said offering statement here. You should read the offering circular before making any investment.

Forward-Looking Statements Disclaimer

The offering materials and this letter may contain forward-looking statements and information relating to, among other things, ERC Communities 1, Inc., its business plan and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to the company’s management. When used in the offering materials, the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements, which constitute forward looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause ERC Communities 1, Inc. actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. ERC Communities 1, Inc. does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

Additional Disclaimers

*Since the tax treatment of any distributions may vary according to the financial performance of the company, as well as the particular circumstances of the investor, investors should consult their own tax advisers, and should not assume that the distributions will be subject to the same tax treatment from year to year. ERC Communities 1, Inc. will not generate revenues or profits until the company has built communities, and there is no guarantee that those communities will be profitable. There can be no guarantee of future profits.

**During the early years it is likely that dividend payments will be tax-free due to favorable real estate depreciation tax rules combined with the likely treatment of dividends as a tax-free return of capital to investors and thereafter as capital gains income for a limited period. The dividend will only be payable to the extent there are legally available funds. ERC Communities 1, Inc. does not offer tax advice. Investors should consult their own tax adviser for information regarding their own tax situations.

© 2022 ERC Communities Inc.

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