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Understanding investment risks

Real estate investing involves risk. Review the key factors before committing capital.

Market risk

Property values and rental income may fluctuate due to macroeconomic conditions, supply/demand shifts, or regulatory changes.

Liquidity risk

Investments are intended for multi-year holds. There is no secondary market at launch; exits occur when the SPV disposes of the asset.

Operational risk

Tenants may default, maintenance costs may increase, or service providers may underperform.

Mitigation

  • Diversify across multiple properties and asset types.
  • Review due diligence packs, tenant covenants, and financial models.
  • Maintain emergency reserves and only invest funds you can commit for the full hold period.