Tenant-in-common properties are subject to substantial risk and are therefore usually only available to accredited investors with sufficient net worth and income.   Real estate risk factors include, but are not limited to:

Limited liquidity,(The liquidity for this market is remote at best, although there is a growing secondary market, the potential for investor resale is still tenuous.  Sponsors determine the projected hold period,3-10 years usually, and investors need to be able to hold the investment for the duration).  Other risk factors include the inability of Sponsor or professional property management to keep property fully leased, inability to sell the property for more than the purchase price, administrative and property management fees, changes in economic climate,  inability to refinance a building and  inability to meet operating expenses. 

There are a separate set of risk factors when investing in oil and gas properties.  These risks include overstated reserves, weather related production problems, rig and drilling parts supply production delays, commodity pricing swings, limited liquidity, and the  inability to accurately access the value of the property.

Any one of these risk factors can cause a total loss of one’s investment.   Investors must therefore evaluate carefully and with as many experts as possible and practical including  tax and securities advisors, lawyers, and accountants.