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.