Risks Involved
- The Unpredictability of The Market: There is never a guarantee that you will make a profit when you make a sale.
- Credit Risk: When investing using leverage, the bank owns the property until you have paid the loan in full. If you are unable to pay your installments on time, you risk facing foreclosure.
- Depreciation: Generally, real estate property will increase in value, but it is not guaranteed.
- Negative Cash Flow: It is the result of a low occupancy rate due to bad tenants that cause destruction or irregular payments. Property with hidden structural problems could also cause problems.
- Liquidity Risk: If you need cash quickly, you cannot rely on the money you invested in property. Real estate is a long-term investment.
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The Psychology Behind Real Estate Investing Risks: Do you have what it takes?
thinksaveretire.com
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IDEAS CURATED BY
"Making money is art and working is art and good business is the best art." ~ Andy Warhol
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