What are my investment risks?
Any investment activities, including the investments in real estate, will expose you to the different types of risk.
We have compiled a risk statement proving you with a comprehensive overview of investment, real estate, and operational risks.
Please review this document before investing.
You can find the document by scrolling down the page and checking the footer for 'Investment risks'.
Read more about investment risks and Crowdestate's risk rating in this blog post.
What happens if the exit coincides with market crash?
Exiting the real estate investments during the crisis might prove to be difficult of even impossible. Forced exits will cause a lot of damage to investors and should therefore avoided.
Our agreements provide for a optional extension of investment period at Crowdestate’s sole discretion to allow for the better timing and valuation of our members’ real estate investments.
What happens if Crowdestate goes bankrupt or out of business?
Crowdestate’s and its members’ business and assets are kept strictly separated.
Members’ monetary assets are held on specific nominee accounts, which are legally separated from Crowdestate’s own assets.
Member’s investments are held in SPV-s, which are also not part of Crowdestate assets.
The ceasing of Crowdestate’s activities will result in not having new investment opportunities on platform. The current investments are sustainable on their own and their management can be transferred over to any other capable management company.
The contracts also provide for a option to selling the investments of transferring the investment ownership over to participating investors.
The ceasing of Crowdestate’s activities might cause some temporary inconvenience or confusion, but there is not breach to their security.
What is the worst thing that can happen to my investments?
Every investor should be aware of the general risks arising from any investment activity. Real estate investing brings along a full array of real estate specific risks.
Most of the real estate specific risks can be hedged through financial or insurance instruments. In such a case, the occurred damage would be compensated by a financial institution or insurance company.
The worst-case scenario is the real estate crash, that causes a decline in property values. The likelihood of an extra-long real estate crisis, lasting for the full investment period, is quite low. In most cases, the real estate prices have recovered in 3 - 4 years.
Real estate crisis might bring along the need to prolong the investment and continue to lease it out until the prices have recovered.