Risk disclosure
Draft under legal review. This document may change before launch.
Investing in private real estate development is a high-risk investment. Only invest money you can afford to lose entirely and leave tied up for several years. This notice summarizes the main risks; each offering's documents describe its specific risks.
Main risks
- Total loss: you can lose all the capital you invest.
- Illiquidity: there is no market to sell your interest; you usually have to wait until the project is sold or refinanced, which can take longer than expected.
- Development risks: permits delayed or denied, cost overruns, construction delays, contractor problems and zoning changes.
- Market risk: sale prices, rents, interest rates and demand can change and reduce or eliminate the profit.
- Financing: the project may depend on loans that are not obtained or become more expensive; lenders are paid before equity investors.
- Sponsor risk: results depend on the sponsor's ability, integrity and financial condition. Its track record does not guarantee future results.
- Projections: the expected annual return and the timeline are sponsor estimates based on assumptions that may not hold.
- Concentration: investing in a single project or city increases risk.
- Dilution and control: you will usually have no control over project decisions and your interest may be diluted.
- Taxes and currency: tax treatment depends on your country and the structure; if you invest from another country, exchange-rate changes affect your return.
- Regulation: changes in securities, tax or real estate laws can affect the investment.
Tierval does not independently verify all sponsor information and does not guarantee any result. Before investing, read the official documents and consult your legal, financial and tax advisers.