Key risks

1. Market Risk

Real estate values fluctuate due to economic conditions, interest rates, inflation, supply and demand dynamics, and regional market trends. There is no guarantee that the value of a property or your investment shares will increase, and they may decline, resulting in potential losses.

2. Liquidity Risk

Fractional ownership or crowdfunded real estate investments are generally illiquid. You may not be able to sell your investment shares quickly or at the price you expect. Liquidity depends on secondary market availability, platform rules, and demand from other investors.

3. Property-Specific Risks

Each property carries unique risks, including:

• Structural or maintenance issues
• Unexpected repair costs or capital expenditures
• Tenant default or prolonged vacancies
• Legal disputes or zoning changes
• Natural disasters, fire, or other damage

These factors can affect rental income, property value, and overall returns.

4. Rental Income Variability

Income from rental properties depends on tenant occupancy, lease terms, market rent levels, and timely payments. Unexpected vacancies, rent reductions, or tenant defaults may reduce distributions to investors.

5. Regulatory and Legal Risks

Real estate investment is subject to laws, regulations, and taxes in the jurisdiction where the property is located. Changes in property laws, rental regulations, tax policy, or compliance requirements can negatively impact your investment returns.

6. Platform and Operational Risk

Nestivo Realty operates as a technology platform facilitating fractional real estate investment. Risks include:

• Technical failures or downtime
• Cybersecurity breaches or unauthorized access
• Errors in property data, reporting, or transaction processing
• Changes in platform policies or operational procedures

While we implement rigorous security and operational controls, some risks remain beyond our control.

7. Investment-Specific Risk

Investments via Nestivo Realty do not guarantee profit or preservation of capital. Returns depend on property performance, market conditions, operational costs, and other factors. Investors may experience partial or total loss of their investment.

8. Economic and Environmental Risk

Macroeconomic conditions, such as recession, inflation, unemployment, or changes in lending rates, can impact property values and rental income. Environmental risks, including natural disasters or climate-related events, can cause physical damage or reduce property desirability.

9. Dependence on Third Parties

Management of properties, tenants, contractors, and local authorities involves third parties. Their performance and reliability can affect property management, rental collection, and overall investment outcomes.

10. Investor Responsibility

Investors are responsible for performing their own due diligence. You should:

• Evaluate your financial situation and risk tolerance
• Understand the terms of each investment offering
• Seek independent legal, tax, or financial advice

Investments may not be suitable for all individuals, and past performance is not indicative of future results.

11. No Guarantee of Returns

Nestivo Realty provides information, projections, and metrics to help investors make informed decisions, but all returns are variable. There are no assurances, warranties, or guarantees regarding income, appreciation, or liquidity of your investments.

Conclusion

Investing in fractional real estate carries both potential rewards and significant risks. Understanding these risks is critical to making informed investment decisions. Nestivo Realty is committed to transparency and responsible disclosure to help you navigate the investment process safely and confidently.