Risk Statement

Investment - Comprehensive Risk Summary:

Capital at risk. The value of your investment can go down as well as up and historic performance is not a guide to future performance. The returns of this investment represent a higher-risk investment than a savings account and there is the possibility that you could lose all your money invested in this product. The investments on this website are only available to investors who meet certain net worth or investment sophistication criteria. Any investment carries risk as such any person considering an investment should seek independent advice on the suitability or otherwise of a particular investment. Investments are not covered by the Financial Services Compensation Scheme (FSCS).

Disclaimer: Crowd with Us Limited is registered in England and Wales under company number 09243491. The registered office of the company is 27-31 Clerkenwell Close, London, EC1R 0AT. Crowd with Us Limited is not authorised or regulated by the Financial Conduct Authority under the Financial Services and Markets Act 2000 (“FSMA”). The information contained in this web site does not amount to a financial promotion for the purposes of section 21 FSMA.

This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. Crowd with Us Limited, or any of their affiliates or group companies, do not provide any advice or recommendations in relation to this website. If you have any doubt about the suitability of any investment marketed by Crowd with Us Limited, or you require financial advice, you should seek a personal recommendation from an appropriately qualified financial advisor that does give advice. Investments are only available to certain specified persons who are sufficiently sophisticated to understand the risks. Investments in property and unlisted shares carry risk. You may not be able to receive the anticipated returns and your capital may be at risk

  • 1. Investment Performance

    The value of your investment can go down as well as up and past performance is not an accurate guide to future performance. Your capital is at risk and you may not get back what you invest. Rental dividends, capital returns from the disposal of the properties by the Property Company & bond interest are all dependent on a number of factors including economic conditions (the housing market, inflation, interest rates) and the condition, specification and location of the properties for each project.

    Risk Mitigation:
    If the property project value has not reached the desired levels within the projected investment term, a backup strategy may be to rent the properties until the market conditions improve upon which time the properties may be sold.
    We only promote property projects in the UK, which has a robust legal and political system. We promote property projects in UK towns or cities where we believe there is both a high demand for properties to buy and to rent.

    Risk Monitoring:
    We carry out due diligence on all property developers who promote a deal via the Crowd with Us website.
    An experienced and dedicated Crowd with Us analyst carries out separate due diligence on each property project.
    A lawyer appointed by Crowd with Us carries out all legal due diligence on each property project.
    If there are unforeseen costs that arise during a project and there are insufficient funds to cover such costs, then more shares or bonds may be issued by the Property Company to raise the further funds required for the property project. In the case of more shares being issued, your shareholding in the Property Company may be diluted. If sufficient funds cannot be raised for whatever reason and an alternative is needed, the directors of the Property Company may hold a board meeting to decide on the best way forward. For example, if sufficient funds are not able to be raised from investors, the directors may be able to invest funds of their own or they may elect for properties to be sold.

  • 2. Market Liquidity

    Your investment in the products will be highly illiquid. Investments in property are not readily accessible and are therefore illiquid. You will be unable to cash in your investment early if you needed to, or to transfer it to anyone else. If you invest, you should be prepared to hold the investment until the end of the term. There is no active secondary market for the investments. Any target investment duration information provided is only a guide and the duration may be longer. Even for a successful investment, any return on your investment may be unlikely to occur for a number of years from the time you make your investment. If you are over the age of 60 at the time of making any investment through Crowd with Us  you should consider the effect this illiquidity could have on your lifestyle.

  • 3. Capital at Risk

    By investing in the products your capital is at risk and returns are not in any way guaranteed. You may lose all, or part, of what you invest. There can be no guarantee that the investment will achieve the investment objectives. Property prices can go down as well as up and different property types, or those in different areas, may be susceptible to reduced or negative growth. You should not invest more money through Crowd with Us than you can afford to lose ― also without altering your standard of living.

  • 4. Past performance

    Past performance is not a reliable indicator of future results. You should not rely on past performance information as the basis for your investment decisions. Past performance of any investment, including those Crowd with Us  has successfully completed in the past, is not a reliable indicator to the performance of similar investments in the future. The future performance of your investment may be unfavorably affected by a variety of factors.

  • 5. The Financial Service Compensation Scheme

    Your investment and the products will not be covered by the Financial Services Compensation Scheme (“FSCS”). If your investment in the products does not perform as expected, or fails, you will not be able to make a financial compensation claim with the FSCS. The investors should consider the risk involved, as the value of investments may fall or rise, and unregulated funds carry the risk of potential total loss of capital.

  • 6. Your personal decision to invest

    Crowd with Us  does not give any type of advice, or make personal recommendations. No information on this Website constitutes advice or personal recommendation. If you are unsure about the meaning of any information provided it is strongly recommended that you consult your financial or other professional adviser. You may wish to ensure your adviser is appropriately qualified to provide the advice you require.

  • 7. Tax

    The tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. You are fully responsible for the administering of your own tax affairs. Crowd with Us does not provide tax advice. If you are unsure how any investment will affect your tax status, you must seek professional tax advice before you invest.

  • 8. Diversification

    Investors should be prudent and spread their investments across different investment products to spread their risk as part of a diversified portfolio. Investors should not  put too much of their capital in a single investment product / sector. This means that you should consider investing relatively small amounts in multiple asset classes as opposed to a large amount in one or a few. It also means that you should consider investing only a small proportion of your investable capital in this asset class (property), with the majority of your investable capital invested in safer (e.g. less risky investment products) and more liquid assets.

  • 9. Central risks of real estate development

    There can be no assurance that the investment will achieve its investment objectives. The development, or/and re-development, or/and refurbishment of properties may exceed budget. Unforeseen events such as changes related to building permits, planning errors or other aspects of the development and redevelopment, shortage of necessary equipment, or adverse weather conditions, or other unforeseen events may cause cost overruns and delay or frustrate completion of a project. There can be no assurance that any overrun resulting from any occurrence will be adequately covered by insurance policies, or that such insurance will continue to be available. In the event of a budget overrun the investment may need to seek additional financing from outside sources in order to complete production. No assurance can be given as to the availability of such financing or, if available on terms acceptable. In addition, in the event of substantial budget overruns, there can be no assurance that such costs will be recouped, which could have a significant impact on the investment results.
     
    Your Investment
    The companies listed on our website are private companies owned by the respective borrower. When considering investing, you must take into account the risks inherent in the transaction. By investing in loans, your capital is at risk and there is a risk that you may not get back what you put in. You should not invest more money through the platform than you can afford to lose without altering your standard of living.
     
    Using our website you can invest in loans issued by unlisted companies which may be start-up or newly formed companies looking for funding for their property project. In some cases, the companies may not have a long history or track record and your investment may be at a risk of losing significant value or all of their value. The Property Company may be unable to meet its repayment obligations. Crowd with Us will not be liable to you for any failure by the Property Company to honour your rights in relation to your investment.
     
    A listed company is required to comply with strict corporate governance and disclosure requirements as stipulated by the listed exchanges, on which the company securities are listed, or by other regulations. However, in the case of an unlisted company, there are no statutory requirements to make any disclosure in case of any change in control or significant change in operational activities. We cannot guarantee and therefore will not be liable to you for any failure to keep you informed of any such matters.
     
    Investors should consider whether each deal promoted sufficiently describes the various risks and conflicts of interest relating to the developers business and their project. We will provide guidance to developers to assist them in preparing full and fair disclosure of all risks in their application. However, we have no ability to guarantee whether all such risks have been accurately described or disclosed and we therefore cannot be held liable for any failure to do so. Before making any investment decisions, you should fully assess the risks involved and query any matters where you feel inadequate risk disclosures have been made.
     
    Risk Mitigation:
    Crowd with Us will assess each borrowers application for funding. We will use our best efforts and knowledge to assess whether we feel that their proposal is financially viable.
    If an unfortunate situation arises where a Property Company or a borrower cannot fulfil their obligations under the terms of the loan, then a trustee will exercise their powers to attempt to recover the interest and capital owed to the investors by the Property Company.
    Risk Monitoring:
    Some borrowers may elect to have their accounts audited by external auditors. However, there is no requirement for them to undertake audits as the property Companies are unlisted companies.