Disclaimer: Real-estate investing involves risks, including loss of capital, illiquidity, and dilution, and should be done only as part of a diversified portfolio.
RISK WARNING: Investments in property and unlisted shares carry risk and you may not receive the anticipated returns and your capital may be at risk.
Past performance isn’t a reliable indicator of future performance
Fortune does not remove any of the risks that you may experience should you acquire a residential property directly and outright (i.e. without a mortgage). Some additional risks are introduced by virtue of the fact that you lack control over day-to-day decisions and timing of your exit.
We encourage you to diversify your Fortune investments across multiple properties to safeguard against excessive exposure to any one property that could incur issues such as tenant default or a problem specific to that property that impacts valuation.
Whilst Fortune provides gross rental income estimates based on information from third parties, these are not guaranteed. It may be that lower rents are secured. Furthermore, rental income could cease completely for certain periods. For example if a fire were to occur which was not covered by insurance, Fortune reserves the right to obtain a loan secured against the underlying property to rectify the damage. This loan will need to be paid down by future rental income.
Whilst you can advertise your investment for sale to other Fortune users at any point, there may not be anyone willing to buy your investment at a price that you deem reasonable (or buy it at all). In that event you will be required to wait until the property's listing on the Fortune platform. Even at this point, the timing and ability to exit will depend on completion of a transaction to sell the underlying property. This transaction could take several months.
The value of your investment may decline
The value of your Fortune investment can go down as well as up and historic performance is not a guide to future performance. A fall in the value of your investment may be due to a number of reasons, such as a fall in the underlying value of the property or a problem with the property that will need to be funded from future rental income.
Fortune reserves the right to dispose of the properties and return net proceeds to investors. As well as being likely to receive back substantially less than invested, the timing may be unwelcomed and may result in the crystallisation of taxable income sooner than anticipated.