Warning about the risks of investing

In accordance with the legal obligations imposed by the Autorité des Marchés Financiers (AMF), investors must be fully aware of the risks involved in investing on Bricks or in companies carrying out real estate operations.

Risk warnings

Bricks.co offers real estate investments accessible from €10. However, real estate investments carry risks, and potential investors must be aware of these risks before deciding to participate.

First of all, real estate investment is subject to market risks, which means that the value of investments may fluctuate depending on economic conditions and the real estate market. Real estate investments are also subject to property-related risks, such as construction delays, unexpected additional costs and rental-related risks.

In addition, potential investors must be aware that real estate investment is illiquid, which means it can be difficult to sell a stake when cash is needed. Real estate investments may also be subject to credit risk, if Bricks.co borrows to finance its investments and is unable to repay its debts.

Finally, potential investors must be aware that real estate investments carry regulatory risks, particularly with regard to tax laws, environmental regulations and zoning laws.

As a result, Bricks.co strongly recommends that potential investors carefully read the information provided on its website and consult their own financial advisor before making an investment decision.

By investing with Bricks.co, potential investors acknowledge and accept all the risks associated with real estate investment, and acknowledge that Bricks.co offers no guarantee of yield or return on investment. Potential investors must also be aware that past performance is no guarantee of future performance.

If you have any questions after reading this information, please consult the Bricks FAQ or contact our teams by sending an email to contact@bricks.co.

The golden rules of investing

Ensure your portfolio is diversified. As an investor, it is important not to expose a large part of your wealth to unlisted investments and to spread your investments on Bricks.co only after having already invested in more liquid and less risky vehicles. It is advisable to keep cash available to cope with the illiquidity risks that may arise during transactions, and not to invest more than 10% of your total wealth.

Determine your acceptable risk level. To obtain a satisfactory return aligned with your objectives and investment strategy, you must determine your acceptable risk level. It is important to manage your investments according to the different risk levels in order to find the right balance between risk and return.

Anticipate cash flows. When you invest, you must take into account the transaction schedule to account for the period during which funds are tied up and you will not be able to access your capital.

Diversification is essential. It is a key rule of investing. It is recommended to spread your investments across different asset classes, favouring investments in companies at various stages of development and from varied sectors. The goal is to reduce the overall risk of your portfolio by balancing secure investments and riskier ones, depending on your needs, your family situation and your risk appetite. On Bricks.co, we offer you diversified real estate investment opportunities to help you achieve your investment goals.

Additional identified risks

The main identified risks are as follows:

Default risk: if the borrower does not repay the principal or interest, you may lose part or all of your investment.
Liquidity risk: the bonds issued by project owners are often less liquid than listed shares, which means it can be difficult to sell your bonds when needed.
Concentration risk: if you invest in a single real estate project or in a small number of projects, you are exposed to concentration risk. If a project runs into difficulty, this can have a significant impact on your investment portfolio.
Project risk: real estate projects may be subject to risks related to the operation of the real estate asset, the economic environment and other factors that may affect their profitability.
Platform failure risk: if our crowdfunding platform goes bankrupt or ceases its activities, it may be difficult to recover your investment.
Currency risk: if you invest in real estate projects abroad in a currency other than the euro, you are exposed to currency risk, i.e. the fluctuation of exchange rates between your currency and that of the investment country.
Performance risk: there is always a risk that the project does not go as planned, whether in terms of profitability, construction or sale timelines, asset quality or other factors.
Market risk: economic conditions can change rapidly, which can affect demand for real estate assets and, consequently, their value and the project owner's ability to pay the announced interest.
Lack of guarantees risk: real estate projects may not offer sufficient guarantees to protect your investment, which can make your investment riskier than traditional investments.
Force majeure risk: unforeseen events such as natural disasters, wars or economic crises can affect the real estate project and your investment.
Interest rate risk: if interest rates rise, this can reduce demand for real estate assets and lead to a decline in the value of the property.

Risks related to the SPV

Before subscribing to the bonds, we wish to draw your attention to the potential risks associated with the undercapitalisation of the SPV (special purpose vehicle) created by the project owner. The main risks are as follows:

Capital loss: in the event of undercapitalisation of the SPV, investors face an increased risk of capital loss, especially if the resale of the property turns out to be less favourable than expected.
No participation in capital gains: investors subscribing to the bonds do not participate in any capital gains realised on the property.
Liquidity risk: undercapitalisation of the SPV can lead to a higher liquidity risk, making it more difficult to repay the bonds in the event of financial difficulties of the project owner or default of the SPV.
Dependence on the fundraising: the success of the operation is conditioned on the success of the fundraising organised by Bricks.co and on the future performance of the property.

We invite you to take these risks into account when making your investment decision and to consult the detailed information on each project before committing. By subscribing to bonds on our platform, you acknowledge that you are aware of these risks and agree to assume them.

Any questions?

If you have any questions after reading this information, please consult the Bricks FAQ or contact our teams by email at contact@bricks.co. Our customer service is available Monday to Friday, from 9:00 a.m. to 1:00 p.m., at +33 4 81 68 17 22.