Subject: File No. S7-26-07
From: Dennis W Kroeker, JD
Affiliation: California State Bar etc

November 14, 2007

Tennant In Common offerings go through stringent proceedings and, as the owner typically does not want to "manage" real estate, it is really the domain of the Registered Rep to make a suitable reccommendation. As an OSJ I find that Reps are very concerned about the underlying investment and suitability and the only competition is between offered properties. They can reccomend legal or tax advice if needed. Our investors do not want to "manage" their real estate holdings but may be "borderline" as they have managed in the past albeit usually single family residences.

Contrarily, Real Estate agents have their own listings which are more suitable for investors who wish to manage or have hand on involvement with their real estate. If this rule is passed, based upon my experience since 1972 as a lawyer and 1992 as a registered rep, I have found that there is strong real estate broker bias and pressure for investor to take a local property and manage it (which is a listed property of the RE broker). The suitability of the investor is ignored in this higher risk approach. This will result in investors confusion at best or comprising the investor or unsuitable reccommendations at worst. I would encourage not adopting this change.

Thank you.