Risk warning
This is a risk warning from Realtybundles Ltd., a company incorporated under the laws of Israel under company number 516104031 having offices Megiddo 1923000 Israel (“RealtyBundles”, “We”, “we”, “us”, and “our”, as applicable); to all users of the website www.realtybundles.com (the “Website”), that intend to make an investment in real property via the website.
Investment in real estate can be an extremely rewarding investment. However, like all investments, it is a risky venture.
Before making an investment via our Website, you must carefully consider your financial resources, all risks involved, and invest only if you fully agree to and understand the terms and conditions accessible via (the “Terms and Conditions”), and any other information referenced therein. Realtybundles is not providing any investment advice, so please take independent professional advice before taking any decision to invest. We require you to pass appropriateness test on our Website in order to make sure that you have sufficient knowledge and fully understand key risks related to your investment decision.
As with most investment decisions there are risks involved. This section outlines some of these risks. Please read these risks carefully as it is important that you understand the types of risks associated with investment activity.
1. Loss of Capital
Property prices can go down as well as up and different property types or those in different areas may be more or less susceptible to reduced or negative growth. By investing in property through Realtybundles, there is a risk that you may not get back what you put in if property prices fall. You should not invest more money through the platform than you can afford to lose without altering your standard of living.
2. Illiquidity
- a new investor buys your securities through our Website;
- the special purpose vehicle - SPV (company or partnership) in which you invested via the platform through the purchase of its shares and/or bonds and/or fund units has enough money and agrees to buy your securities back upon the fulfillment of any conditions and terms detailed in the Terms and Conditions; or
- SPV sold one of the property in bundle and agrees to buy your securities back upon the fulfillment of any conditions and terms detailed in the Terms and Conditions.
The securities you purchase through the Website in the SPV are not listed on any exchange and there is no obvious secondary market on which you could sell your securities. As a result you may not be able to get your capital back early if your circumstances change. You should carefully consider whether the terms of the investment described in Terms and Conditions is acceptable for you in light of this.
3. No Dividends
Investors may receive no dividends or distributions under current investment terms and conditions.
4. Diversification
The special purpose vehicles into which you will invest through the Website are mainly newly formed entities set-up specifically for the purpose of investing in the property bundle concerned. They therefore do not have a long-term track record that you can review. Investing in unlisted shares should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in different SPVs that own different property bundles rather than a lot in one SPV. Any investment you make through the Website will be highly illiquid. Once you have committed your money it could be difficult for you to exit your investment and get your money back at a time that suits you. This means that you are unlikely to be able to sell your securities until and unless:
You should also only invest a small proportion of your investable capital in startups as an asset class, with the majority of your investable capital invested in safer, more liquid assets.
5. Tax
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 still 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 effect your tax status you must seek professional advice before you invest. Each SPV you invest in may be liable for, and pay, corporation tax and any returns you receive will be paid to you net of any corporation tax due.
6. Advice
Realtybundles does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by members of Realtybundles on the basis of information provided. Realtybundles takes no responsibility for this information or for any recommendations, opinions or predictions.
7. Past Performance
Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.
8. Future performance
Any projections of future performance are based on the internal calculations and opinions of Realtybundles and are subject to change at any time. Forecasts are not a reliable indicator of future results and should not be relied on.
9. Compensation Scheme
Investing through Realtybundles is not covered by any compensation scheme.
10. Bonds are unsecured
The bonds purchased through the Website are unsecured debt of the investee company and ranked equally with any other unsecured debts of that company. If you purchase bonds through the platform, they will be unsecured debt of the investee company and will rank equally with any other unsecured debts of that company. The bonds will not be secured against any fixed asset or property, and if the Issuer were to become insolvent, there is a risk that (a) some or all of the nominal value of the bonds would not be redeemed and (b) some or all of the interest payments due on the Bonds would not be paid.
11. Currency exchange rates fluctuate
Investments through Realtybundles are denominated in different currencies , and most investee companies (SPVs) on Realtybundles operate in foreign countries that use other currencies. The exchange rates between the invested currency and those foreign currencies will fluctuate over the life of your investment. This means that even if the investee company is successful and the value of your investment increases in terms of the foreign currency, you may not be able to realise the full value of any increase in terms of your original invested currency, and you may lose some or all of your investment due solely to exchange rate fluctuations.
12. Client Classification
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 categories of investor available, you will give immediate written notice to Realtybundles and you will not access, or try to access the service unless and until you fall into one or more of these categories again.
13. Jurisdiction
The information and services provided on the Website 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 Realtybundles is not authorised to provide such information or services. Some products and services described in the Website may not be available in all jurisdictions or to all clients.
The list of risk factors specified in this document does not necessarily outline all possible risks involved. Prospective investors should read the relevant SPV Key Information Document and Realtybundles Terms 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 Realtybundles, you should seek advice from an independent financial adviser.