Real estate investment groups (REIGs) may seem like an easy way to invest in real estate without the hassle of managing the property yourself. However, there are several potential downsides to consider. First, you have no control over the properties being invested in, which can be a major disadvantage for those who prefer a hands-on approach. Second, high fees and costs associated with the investment can eat into returns and make it difficult to sell your ownership interest in the group.
It’s important to carefully consider the lack of control, high fees, illiquidity, and potential risks associated with an REIG before making a decision. Due diligence and research are critical to making informed choices, and investors should be aware of these potential downsides before investing in an REIG.