Each of our officers is an employee of our Manager or one of its affiliates. However, this may not always be the case. This is generally referred to as extension risk. We operate in a highly competitive market for investment opportunities. These risks are discussed more fully in the section of this Report titled "Risk Factors." These securities may be less liquid than publicly traded securities. We could realize a loss if the securities were sold. Changes in interest rates and prepayments affect the market price of target assets. We are, therefore, subject to the risks associated with third-party service providers. As a result, we may not recover some or all of our initial expenditure. In addition, we may acquire commercial loans structured as preferred equity investments. In a credit default swap, the party wishing to "buy" protection will pay a premium. Our authorized but unissued shares of capital stock may prevent a change in our control. Even an inadvertent or technical mistake could jeopardize our REIT status. Even if we qualify as a REIT, we may face tax liabilities that reduce our cash flow.
