Investment Disclaimer

1. Not Professional Advice

IVAI Pro provides educational software tools and data analysis. It does NOT provide:

• Licensed real estate brokerage services
• Investment advisory services regulated by the SEC or state securities regulators
• Legal advice or contract review
• Tax planning or accounting advice
• Financial planning or fiduciary services
• Property inspections or condition assessments

You must consult with licensed professionals (real estate agents, attorneys, CPAs, inspectors, contractors) before making any investment decisions.

2. No Guarantees or Warranties

3. Known Risks of Real Estate Investing

Real estate investments involve significant risks, including but not limited to:

Market Risks

• Property values can decline due to economic downturns, interest rate changes, or local market shifts
• Rental demand and rates fluctuate with employment, population trends, and competition
• Illiquidity - real estate cannot be quickly converted to cash

Property-Specific Risks

• Hidden defects (foundation issues, mold, termites, code violations)
• Repair costs often exceed estimates (contingency budgets are critical)
• Vacancy periods reduce cash flow
• Problem tenants (evictions, property damage, non-payment)

Financial Risks

• Mortgage foreclosure if unable to make payments
• Negative cash flow drains personal finances
• Overleveraging amplifies losses
• Rising property taxes, insurance, HOA fees

Legal & Regulatory Risks

• Lawsuits from tenants, buyers, neighbors, or contractors
• Zoning changes restricting use
• Environmental liabilities (lead paint, asbestos, contaminated soil)
• Fair housing law violations

4. Data Limitations & AI Accuracy

IVAI Pro aggregates data from third-party sources (MLS, public records, APIs). Data may be:

• Outdated: Property status, prices, and availability change rapidly
• Incomplete: Missing bedrooms, square footage, or condition details
• Inaccurate: Errors in public records or MLS listings
• Biased: AI models trained on historical data may reflect past market conditions

AI-generated analysis (valuations, seller motivation scores, exit strategy recommendations) is probabilistic and subject to error. Always verify critical information independently through:

• Professional appraisals
• Title searches and property inspections
• Direct communication with sellers and listing agents
• Comparable sales research from local MLS

5. 70% Rule & ARV Disclaimers

The "70% Rule" (Maximum Allowable Offer = 70% × ARV - Repairs) is a rule of thumb, not a guarantee. Actual results depend on:

• Accuracy of ARV estimates (often overestimated)
• Actual repair costs (often underestimated)
• Market conditions at time of resale
• Holding costs (mortgage, taxes, insurance, utilities)
• Transaction costs (closing costs, realtor commissions, staging)

Conservative investors use a 65% rule or 60% rule in competitive markets. Always build in contingency buffers.

6. Exit Strategy Disclaimers

Retail (Fix & Flip)

• Market can shift during renovation period
• Repair costs frequently exceed budgets by 20-40%
• Holding costs accumulate if property doesn't sell quickly
• Capital gains taxes reduce net profit (especially if held <1 year)

Wholesale

• Requires established buyer network (not easy for beginners)
• Assignment contracts may be illegal in some states without real estate license
• Sellers can back out if they find out about assignment fee
• Earnest money at risk if unable to assign contract

BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

• Refinance appraisal may come in lower than ARV estimate
• Lenders have seasoning requirements (6-12 months before refinance)
• Rising interest rates reduce refinance viability
• Tenant issues can delay refinance timeline

Seller Financing & Note Sales

• Buyer default risk (foreclosure costs time and money)
• Illiquidity - note sales often at 20-40% discount
• Legal complexity requires attorney review

7. No Agency Relationship

IVAI Pro is not your agent, fiduciary, or representative. We do not:

• Act on your behalf in negotiations
• Have a duty to disclose material facts about properties
• Owe you a fiduciary duty of loyalty or care
• Represent your interests in transactions

Hire a licensed real estate agent to represent you in purchase negotiations.

8. Educational Purposes Only

Content on IVAI Pro (including AI analysis, blog posts, case studies, and tutorials) is for educational purposes only. It should not be construed as:

• A recommendation to buy, sell, or hold any specific property
• Personalized investment advice tailored to your situation
• A guarantee of investment success

9. Third-Party Data Sources

IVAI Pro relies on third-party APIs for market data:

We do not control these sources and cannot guarantee their accuracy, availability, or completeness.

10. Your Acknowledgment

11. Contact

For questions about this disclaimer: