Investing in passive real estate on Mintos involves several risks that investors should be aware of:
- Market risk: The real estate market's condition at the time of redemption can be unpredictable, potentially leading to delays in repayments and a partial or complete loss of the invested funds.
- Property valuation risk: Despite thorough valuations by independent, licensed third-party appraisers and property inspections before purchase, there's no guarantee the market value will always be accurately determined. This could result in the property being bought above or sold below its fair market value, adversely affecting the redemption value.
- Early redemption risk:
Mandatory early redemption:
This might happen if the property is sold, the co-ownership agreement ends for any reason, or other circumstances as outlined in the legal documents.
Voluntary early termination: The property entity can decide to sell it before maturity, as long as they inform the Issuer 3 business days in advance. This early sale could change the returns you were expecting.