Risk Warnings related to the use of the Bricksave platform and real estate crowdfunding.
An investment through Bricksave does not remove any of the risks to which you may be exposed if you bought a property directly without a mortgage. Key risks are as follows:
The value of your Bricksave investment can go down as well as up and past performance is not a guide to future performance. A decline in the value of your investment may occur for several reasons, such as a fall in the underlying value of the property, incompetence or fraud of the asset manager or developer, or a problem with the property that will require funding from future income. You may not get back the full amount invested and consequently may lose some or all the funds invested. You should not consider investing unless you can afford a total loss of your investment.
Any projections of future performance are based on the internal calculations and opinions of Bricksave and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.
Bricksave relies upon third party providers to supply up to date information, reports, and valuations, and is not liable for information sourced from such third parties. Different third-party providers may employ different valuation and reporting methods, and may value the underlying assets at different intervals, which may create valuation discrepancies.
Investments into real estate are intrinsically illiquid. This means that you may not be able to sell your investment and you may have to wait until the asset is put up for sale, even then, the timing of and ability to exit will depend on completion of a transaction to sell the underlying property.
While Bricksave provides gross income estimates based on information from third parties, these are not guaranteed, and it is possible that lower income is secured. Income could even cease entirely for certain periods. For example, if a substantial repair cost arose, Bricksave might need to obtain a loan secured against the underlying property to undertake the repair. Repayment of such a loan would be met by future income.
Bricksave believes investing in property and unlisted shares should only be done as part of a diversified portfolio. This means investing smaller amounts in multiple properties rather than larger amounts in very few properties. We believe you should spread your Bricksave investments across multiple properties to minimise excessive exposure to any one property which may suffer from adverse circumstances such as tenant default or a problem that impacts valuation.
You will be able to inform Bricksave of your views on investments, but you will not be able to make decisions relating to the management of the company or the property. Bricksave reserves the right to sell the property and return net proceeds to investors, to cover unforeseen circumstances. This may result in your receiving back substantially less than the amount invested.
Bricksave is not authorised or regulated by the Financial Conduct Authority and the protections afforded to clients of authorised firms under the UK regulatory regime do not apply.
You will be responsible for the payment of your own tax which may include capital gains and/or income tax. We do not provide tax advice and you should seek independent tax advice before investing if you are unsure of your position. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status you must seek professional advice before you invest. Each company you invest in will be liable for, and pay, corporation tax and any returns you receive will be paid to you net of any corporation tax due. The basis of taxation may change over time.
Diversified Real Estate Asset Management Limited operates the crowdfunding website www.bricksave.com and is the issuer of the investments available through it. When you make an investment, the risk to your investment capital is the risk that Bricksave will not generate sufficient returns to pay you back in line with any investment objectives set out in the Information Memorandum. Bricksave’s ability to pay you will be affected by the underlying property-related investments it makes.
The term of the investment is indicative only. Due to the nature of the investments and individual exit strategies, these can move, sometimes significantly. Exit strategies will be outlined in the Information Memorandum. If you are unsure whether you can commit funds to an investment that may not end on the anticipated end date, you should seek advice from a professional.
Before being allowed to invest, you will need to be classified as an investor type. You will need to provide the relevant information to us, which you warrant to be truthful and accurate, in order that we can classify you. Please follow the steps when signing up to complete this process. If you no longer fall into at least one of the investor categories available, you will give immediate written notice to Bricksave and you will not access or try to access the service unless and until you fall into one or more of these categories again.
The information and services provided on the Site are not provided to. and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules, or regulations of any governmental authority or where Bricksave is not authorised to provide such information or services. Some products and services described in the Site may not be available in all jurisdictions or to all clients.
This list of risk factors does not necessarily outline all possible risks involved. Prospective investors should read the Bricksave Terms & Conditions in their entirety and consult with their own advisers before deciding whether to invest. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.