Investment

5 Types of Risk Every Real Estate Investor Should Know About

High quality 3d render of a miniature house on a blue financial chart. Housing market concept. Miniature house is lit by the upper left corner of composition. Horizontal composition with copy space. Great use for real estate and morgage related concepts.

4. Liquidity Risk. Taking into consideration the depth of the market and how one will exit the investment needs to be considered before buying. An investor can expect dozens of buyers to show up at the bidding table in a place like Houston, regardless of market conditions. However, a property located in Evansville, Indiana will not have nearly the same number of market participants, making it easy to get into the investment, but difficult to get out.

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