A decline in the real estate market can impact the performance of your investment, and the specific effects depend on the type of investment—whether it is a mortgage-secured real estate loan or a real estate equity investment.

Mortgage-secured real estate loans are structured with a significant layer of protection as they are secured by a mortgage on the underlying property. In the event of a market decline, the value of the property may decrease; however, the mortgage provides a safety net for investors. Here’s what may happen:

1. Loan-to-Value (LTV) protection: Loans are typically issued with conservative LTV ratios to ensure the property value is significantly higher than the loan amount. This reduces the likelihood of a shortfall if the property needs to be sold to recover funds.
2. Repayment monitoring: If the Project Owner experiences difficulty repaying the loan, we work closely with them to explore restructuring options that prioritize repayment to investors.
3. Recovery process: In cases where the Project Owner defaults, the property can be sold to recover the loan principal. While a market decline could affect sale proceeds, the secured nature of the loan increases the likelihood of recovering the investment.

Real estate equity investments are more directly influenced by market conditions because they are tied to the performance of the project and the overall value of the property. Here’s how a market decline may affect these investments:

1. Potential for delayed returns: A market downturn could lead to slower sales or reduced rental income for the project, potentially delaying returns to investors.
2. Impact on profitability: Since equity investors share in the project's profits, a lower property valuation or revenue may reduce the overall return.

Crowdestate prioritises investor protection and maintains a strict due diligence process to minimise risk exposure:

• Conservative valuations and due diligence: All projects undergo a rigorous assessment to ensure they are viable even under fluctuating market conditions.
• Diverse opportunities: Offering both loan- and equity-based investments allows investors to diversify their portfolio, balancing risk and return based on individual preferences.

Your investment portfolio on Crowdestate is fully under your control, meaning you decide how diversified or concentrated it is. We offer a wide range of investment opportunities across multiple European jurisdictions, including both mortgage-secured real estate loans and equity investments.

Diversification is a key principle for managing risk effectively. By spreading your investments across different projects, countries, and types of real estate opportunities, you can reduce the risk associated with any single project or market. Crowdestate provides ample opportunities to diversify, allowing you to invest in a mix of real estate assets across different locations and structures.

Ultimately, whether your investment is diversified or concentrated depends on how you choose to allocate your capital among the projects available. We encourage investors to consider diversification as a strategy to mitigate risk and enhance the potential for stable returns.

When investing through Crowdestate, the minimum investment per project is €100, with investments made in €100 increments (e.g., €100, €200, €500, €1,000, etc.). There is no specified maximum investment amount.

Yes, anyone who meets the basic requirements can become a real estate investor on Crowdestate. Our platform is designed to make real estate investment opportunities accessible and straightforward for a broad audience, regardless of prior experience in investing.

To start investing, you need to:

• Meet the eligibility criteria:

You must be of legal age in your country of residence.

You need to complete the identity verification process as required by anti-money laundering (AML) regulations.

• Create an account:

Register on the Crowdestate platform and open an investment account by providing the necessary information.

Once your investment account is open, you are ready to invest,

• Understand the risks and opportunities:

Real estate investing involves risks, and we encourage all investors to carefully evaluate each project and diversify their portfolio to manage risk effectively.

• Start with your preferred investment amount:

Crowdestate allows you to start investing with relatively small amounts, making it accessible even to those with limited capital.

You are free to choose projects that align with your financial goals and risk tolerance.

Investing through Crowdestate is generally free of charge, with a few specific exceptions. Below is a detailed overview of the fees associated with various activities on the platform:

1. Investment fees:

Primary and secondary markets: Crowdestate does not charge fees for investing in projects listed on either the primary or secondary markets. This means you can invest in available opportunities without incurring additional costs.

2. Selling investments on the secondary market:

Transaction fee: If you choose to sell your investments on the secondary market, a transaction fee of 2% plus VAT is applied. This fee is deducted from the seller’s account at the time of the successful sales transaction.

3. Bank transfer fees:

   Incoming payments: There are no fees for bank transfers to your investment account from IBAN bank accounts.

   Outgoing payments:

   • SEPA payments: Outgoing SEPA payments from your investment account are free of charge.
   • International payments: For international payments outside the SEPA zone, fees are determined by the applicable price list of AS LHV Bank. These charges will be deducted from your investment account.

Crowdestate offers a transparent fee structure, minimising costs for investors. For most activities, including investments and SEPA payments, there are no additional charges. However, specific fees apply for secondary market transactions and international bank transfers.