Summary
All investments carry risk, including real estate. Property values can go down, rental income can vary, and your capital is not guaranteed. We're transparent about this because informed investors make better decisionsand because anyone promising otherwise is lying.
The Honest Truth
No investment is risk-free. Real estate is generally considered lower-risk than many asset classes, but risks still exist. Here's what you need to know before you invest.
Key Risks
1. Property Value Risk
What it means: Property values can decrease as well as increase.
Causes:
Economic downturns
Market corrections
Area decline
Oversupply in the market
Impact: Your investment could be worth less than you paid.
2. Rental Income Risk
What it means: Rental income can be lower than projected.
Causes:
Tenant vacancies
Rent reductions to attract tenants
Tenant defaults
Market rent decreases
Impact: Your monthly income could be less than expected, or zero during vacancies.
3. Liquidity Risk
What it means: You may not be able to sell when you want.
Causes:
Exit windows only every 6 months
12-month lock-up period
No buyers during exit window
Property sale takes time
Impact: Your money could be tied up longer than planned.
4. Market Risk
What it means: Broader economic factors affect all properties.
Causes:
Economic recession
Interest rate changes
Political instability
Global events
Impact: Even well-chosen properties can be affected by market-wide issues.
5. Currency Risk
What it means: If you invest in a different currency, exchange rates affect your returns.
Causes:
Currency fluctuations
Economic policy changes
Impact: Your returns in your home currency may vary.
6. Regulatory Risk
What it means: Laws and regulations could change.
Causes:
New property taxes
Rental regulations
Foreign ownership rules
Financial regulations
Impact: Could affect returns or ownership structure.
DFSA authorisation covers Arvo as a platform operator. It does not mean the DFSA has approved, endorsed, or guaranteed any specific property, valuation, projected return, or investment listed on the platform.
7. Property-Specific Risk
What it means: Individual properties have unique risks.
Causes:
Building defects
Major repairs needed
Problem tenants
Legal disputes
Impact: A specific property could underperform.
How We Mitigate Risks
Risk | Mitigation |
Property value | Independent RERA-certified valuations |
Rental income | Professional property management |
Liquidity | Regular exit windows |
Property-specific | Due diligence before listing |
Regulatory | DFSA compliance, legal oversight |
Transparency | Full disclosure on all properties |
We can't eliminate risk. We can manage it.
What We Don't Promise
No guaranteed returns
No promise of no losses
No specific appreciation
No guarantee of always finding tenants
No instant liquidity
Anyone who promises these things is not being honest.
What We Do Promise
Full transparency on risks and fees
Regulated platform with oversight
Professional property selection
Independent valuations
Clear ownership structure
Performance Fee only charged when the property sells at a profit
Is Real Estate Right for You?
Factor | Question |
Time horizon | Can you invest for 3 to 5 years? |
Liquidity needs | Can your money be locked up for at least a year? |
Risk tolerance | Can you accept potential losses? |
Diversification | Is this part of a broader portfolio? |
Understanding | Do you understand how crowdfunding works? |
If you answered "no" to any of these, real estate investing may not be suitable for you right now.
How Our Fees Are Structured
We charge fees that cover operational costs: a Success Fee and KYC Fee at investment, an Admin Fee annually, and an Exit Fee at sale. These are disclosed upfront and apply regardless of performance.
The Performance Fee is different. It is 7% of the profit generated when the property is sold — the Sales Price, less sales fees and transaction costs, less the total Funded Amount (including all costs and fees funded at acquisition). If the sale does not generate a profit, we do not collect it.
This is where our interests are tied to yours. We are motivated to select properties that appreciate, because if they do not, we do not earn our Performance Fee.
Before You Invest
[ ] Read the property documentation
[ ] Understand the risks
[ ] Only invest what you can afford to lose
[ ] Consider your overall financial situation
[ ] Ask questions if unsure
Need Help?
If anything is unclear, ask before you invest. [email protected]
All investments carry risk. Real estate price can increase and decrease in value. Past performance is not a guarantee of future returns. Arvo is regulated by the DFSA.