Physical Risk

The chance that an investment property would incur unanticipated charges or capital expenditure due to its physical condition is known as physical asset risk. This is especially true for older homes that have been neglected. These properties may require costly repairs or modifications, reducing the investment's profitability. Before concluding a sale, investors can limit physical asset risk by doing technical due diligence.

Note also that Reitcircles will have provision provided to the owners to reduce this risk by asking them to upload "House Report conducted by an external verification agency" . This minimizes the risk of people investing into an asset with false claims, and reduces the reputation risk of the platform.

Reitcircles will only onboard projects after extensive due diligence. Reports by established agencies will be used to review the current condition and pricing of the assets.

We have plans to introduce regular auditing of the assets to see that the investors are being properly served.