Part 7/10:

The credibility of the sponsor or developer behind the project is paramount. An established, well-known brand reduces risks associated with mismanagement or project failure.

Asset Transparency

Understanding what assets are being invested in is essential. Ideally, sponsors should provide opportunities for investors to tour sites and witness project progress firsthand. Regular reports on construction status, costs, and any unforeseen issues are critical for informed decision-making.

Differentiating from REITs

While similar in concept, fractional investments differ from publicly traded REITs primarily in liquidity. Since these are private investments, they involve a smaller pool of investors and tend to have higher bid-ask spreads, making quick liquidation challenging.