Real Estate investment - liquid or illiquid?

Real Estate investment - liquid or illiquid?

A real estate investment liquid or illiquid? Let's talk about that today. Welcome to Wealthy Wednesday. So liquid means like cash, some money you have in the bank account, you can go get it. Some investments in the stock market if there is no restriction, you can cash out anytime. That is a liquid investment.

I know these days the prices are going up and you can buy a property now and sell it soon and make some money. It may feel that real estate is illiquid, but there are certain factors to make a real estate investment property somewhat liquid. So here are those. The level of liquidity for real estate depends on the condition of the property, the cost of the transaction, and the time. Because no one can time real estate. Certain times real estate is this, certain times that when it comes to an increment of the value, rise in the price. The equity you have, maybe sometimes you buy a property with equity. So there are many things that give a little leverage to become a real estate as a liquid investment.

But technically, any real estate you buy is illiquid. It's a long-term investment. Real estate grows in value in long term. That's the real wealth you can gain from real estate. So make sure that when you buy a rental property or your primary home, you want to stay there for a long time and build up equity. So it is a game for the long term, not short term. Yes, we do fix and flip, yes, we do wholesale. But those conditions have to be there like at what price you are getting the property, the transaction cost, and all the details. So there is no rule of thumb that makes real estate a liquid investment. So just make sure you know that. Don't expect a quick return on a real estate investment. It is a long-term game. My name is Shawn Bhakta from Remax Presidential, South Florida Home Finder Team. Give me a call if you have any questions. I'm glad to help.

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