Investment real estate, including securitized real estate, comes with substantial risks, including but not limited to:

  • The absence of guaranteed income
  • Lack of liquidity
  • The risks of owning, managing, operating and leasing properties
  • Possible conflicts of interest with managers and affiliated persons or entities
  • The risks associated with leverage tax risks, including possible changes in tax law
  • Declining markets and challenging economic conditions
  • On-going fees
  • Known or unknown regulatory challenges
  • Tenant vacancies

 

Finally, you should understand that the ultimate risk of real estate investing could include the total loss of your principal investment.