Risks & disclosures
Risks and disclosures
LoanColombia has not formed an entity, obtained licenses, raised capital or made loans. If a private investment is ever offered in the future, it would be speculative and suitable only for people who can afford to lose the entire amount. The following risks would apply.
Draft. This page is a good-faith description of known risks. It has not been reviewed or approved by legal counsel for any specific entity, and it is not an offering document.
Loss of principal
You could lose all of the money you invest. There is no protection against loss, no guarantee of any return, and no assurance that principal would be repaid.
Illiquidity
Any future instrument would likely have no trading market, would be subject to transfer restrictions, and could not be redeemed on demand. You should assume you cannot get your money back before maturity, if at all.
Borrower default
Borrowers may fail to pay. Concentration in a small number of loans, a single city, or a single property type would magnify the effect of any single default.
Collateral and enforcement delay
Colombian mortgage enforcement is a judicial process that can take a long time and cost a significant amount. Recovery may be partial, delayed, or unavailable, and security exists only once it has been properly perfected and registered.
Currency and country risk
Loans and collateral located in Colombia expose any investment to peso/dollar movements, exchange-control and remittance rules, inflation, political and regulatory change, and local market conditions. Currency hedging may be unavailable, partial or costly.
Regulatory and legal uncertainty
The venture's structure, licensing requirements, securities exemption, investment-company status, adviser status, Colombian lending authorization, interest-rate limits and tax treatment are all unresolved and subject to counsel review. An adverse determination could delay, change or prevent the business entirely.
Conflicts of interest
The sponsor would originate, service and value the same loans that support any investor instrument, and would be compensated whether or not investors profit. Allocation, valuation, fee-setting and workout decisions would all involve conflicts.
Fees and expenses
Origination, servicing, legal, valuation, registration, audit, FX and administrative costs would reduce returns. Fee terms are not set and are not published here.
Execution and early-stage risk
There is no operating history, no team credentials published, no track record and no completed technology or servicing infrastructure. The venture may never launch.
No insurance or government protection
Nothing associated with LoanColombia is insured or guaranteed by the FDIC, SIPC, FOGAFÍN or any other deposit or investor-protection scheme. No regulator has approved, endorsed or passed on this venture, and no statement here should be read as an approval by any authority.