InRento | Invest in buy-to-let projects! (2024)

Risk that the owner of the project, to whom the loan is granted, will not perform his/her liabilities undertaken according to the Loan Agreement and (or) will perform them inappropriately. When this risk occurs, the Operator can take measures accessible to it and enforcement measures aiming to protect the interests of the investor, but cannot guarantee that it will be possible to recover all the invested sum.

The Results of the Project can deteriorate due to the changes in the economic situation of the country, region or in a certain market segment – the income of rent can decrease, expenses can increase, the prices of the sale of the assets can decrease. It can negatively affect the received variable income connected with the Project (e. g. variable interest, profit share having sold assets). Due to the negative changes of market there is a possibility for investors not to receive variable income or they can decrease. If market conditions significantly change, the owner of the Project cannot be able to implement his/her obligations.

There is a risk that the immovable property concerning the Project and used as collateral can require repair work or that an emergency event can happen due to which the aasets would be damaged or destroyed. Aiming to manage this risk, the owners of the Project would be required to insure such assets with insurance which would be valid until the complete fulfilment of the liabilities of the owner of the Project according to the Loan Agreement.

Due to the limited liquidity of the segment of the immovable property it can be complicated to sell he assets connected with the Project at the suitable moment and under favourable conditions. In case this risk occurs, the owners of the project can be late to execute their obligations.

Investors will not have a chance to recover the funds invested in the Project until the end of the period of the Project implementation. The Operator, aiming to provide an opportunity for the investors to transfer its possessed Claims, can grant a chance for the investors to use the Secondary Market, but cannot guarantee at any extent that the Claims can be sold in all cases (or that it would be possible to recover invested funds) before the end of the period of the Project implementation.

Chganges in legal or political environment can affect the income of the Project, as well as process and (or) icome received by the investors. Public taxes concerning the immvable property, its rent or crowdfunding can change, which can negatively affect the return on the assets received by the investors.

The factors of unforeseen global changes and force majeure can influence the market of the rent of the immovable property (e. g. terrorism, political instability, COVID-19 pandemic), as well as income received from it. Due to that the possibility of the owner of the Project can be negatively affected to implement the Project and obligations concerning it on time and (or) income received from the Project. Correspondingly, it can also negatively affect the possibilities of the investors to earn return from their invested funds or (and) recover them.