Part 8/10:
Liquidity and Holding Period
Investors need to prepare for a longer-term horizon, often five to seven years, before realizing capital gains. The limited liquidity means that trying to exit prematurely might incur losses or require accepting lower prices.
Market Risks and Cycles
Like all real estate investments, fractional projects are susceptible to market cycles. A downturn can lead to declining property values, difficulty refinancing or renewing loans, and potential forced sales, especially if properties are highly leveraged.