Although BrickFunding is a platform of links and consequently is not a Crowdfunding Platform –with the User being liable to act with the due diligence upon accessing the latter through the link provided–, we want to help our Users and be completely transparent as regards the profitability expected and the potential risks associated with the investment in real estate crowdfunding. For this reason, we encourage all our Users to read the risks summarized below and to inform themselves of the details of those opportunities that may be of interest to them on the original Platform to which we provide a link before making an investment.
1. Exemption from liability
BrickFunding does not provide any financial advice and therefore it is not subject to Title V of the Securities Market Act. BrickFunding is not considered to be an Investment Service Company.
The information included in this web is of general nature and does not constitute specific advice. Nor is it a recommendation to invest. If you have any doubt as to the suitability of an investment, you must look for independent financial advice.
The information included in this web on Real Estate Crowdfunding Platforms and the opportunities they offer is taken directly from third-party sites and, therefore, we do not guarantee its veracity or accuracy, and we do not assume any liability for any damage and/or prejudice and/or profit not earned by the User or any other third party harmed as a consequence thereof. The User is responsible for verifying the numbers, conditions and information of each opportunity on the Platform of origin before taking any investment decision.
BrickFunding does not support or guarantee the investment opportunities presented herein, but rather we only provide a link to them for your convenience.
2. Inherent risks
As with any other investment, real estate crowdfunding involves a series of inherent risks. Investing in real estate properties by means of crowdfunding may be highly profitable, but it also involves a series of potential risks the investor must know and assume. The User is responsible for carefully evaluating their financial situation and financial knowledge before committing funds to a project. If you do not completely understand the risks involved in the investment in real estate crowdfunding, you should not invest.
BrickFunding recommends all the Users intending to invest to carefully read the regulations related to the exemption from liability on each one of the Platforms of interest to them, and to understand the risks and losses inherent in any transaction. Likewise, we recommend you carefully read the specific terms and clauses of each investment.
On the real estate market, the value of a property may be affected upwards or downwards by a wide range of external factors (of a political, financial and social nature) and internal factors (quality of the construction, maintenance and preservation of the property). Real estate crowdfunding is not unrelated to this reality, and consequently there is a risk of an investment returning less than the original investment made.
You should take into account that the target profitability and the information provided by the Platforms on each Opportunity are mere business plans. In other words, they are optimistic forecasts and, as such, they may suffer fluctuations in their development and obtain returns different from those expected during the development of the operations.
Remember that past results and yields are not indicative of future yields.
In general, rental income is not guaranteed and may differ from the terms agreed at the start of the lease (for example, when tenants stop paying the rent or the property becomes vacant / inhabitable for any reason). If an investment does not reach its rental income expected for a given period, dividends may not be paid during such period.
You should take into account that the profitability offered by the Platforms are always an estimate and they show a target value. Although on some occasions they manage to exceed such targets and offer an even higher profitability, they may also be lower than expected or even be cancelled.
Investments in real estate crowdfunding are usually structured as an investment in the shares of a newly-created limited liability company, and each investment should be kept for a period that may extend up to 5 years. Many Platforms include in their conditions the prohibition on selling to third parties, and although some do offer a secondary market where the investors may offer their shares for the sale to other members before reaching the term for the divestment, there is no guarantee of finding a purchaser or managing to sell quickly unless accepting a substantial loss of value. In the case of agreements of account sharing, the situation is similar and it is hard to undo a position.
In general terms, the investor should consider their investment to be illiquid.
BrickFunding does not provide any personal tax advice, and we recommend our Users to look for professional tax advice both before and after investing so as to be up to date with the appropriate tax authorities.
Depending on each country and the operational model of each platform, they may be exempt from or subject to regulation by the Banking and/or Stock Exchange Regulators of the country of origin. In general, even in regulated platforms, the projects and opportunities they present for investment are not supervised by any regulatory entity or body.
Although in BrickFunding we try to provide the most information possible to our Users on each platform and the applicable rules and regulations, we limit ourselves to publishing the information sent by third parties, and therefore the investor is responsible for verifying and consulting in detail the conditions of each opportunity on the Platform of origin before investing.