Understanding the inherent risks of capital deployment.
All capital deployments in real estate and debt instruments carry inherent risks. Prospective capital providers should carefully read and understand the offer documents and consult with financial advisors before proceeding.
Fluctuations in property values, changes in local demand and supply dynamics, and broader economic cycles can adversely affect project viability and returns.
The risk of default by the borrower or developer on interest payments or principal repayment, which may lead to delays or loss of capital.
Construction delays due to labor shortages, material cost escalations, or unforeseen technical challenges can impact timelines and profitability.
Investments in real estate and debentures are generally illiquid. Capital may be locked in for the duration of the project with limited exit options before maturity.