Drawbacks of pooling of funds

[Sean Dezoysa]

I understand that creating a fund is expensive (mid 5 figures) and subject to SEC regulation. What are the issues beyond that? An experienced investor started to tell us at the last REIA about how there is significantly more risk involved with pooled funds instead of the standard series of liens. He didn't complete his thought though.

Anyone know why pooled funds would be riskier to use?

Thanks