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Concerns/pitfalls of owning Real Estate as an investment 1) Liquidity- it is difficult to sell quickly and hard to refinance to take cash out when an investor is cash poor.
2) Financing- An investor needs 10-30% downpayment and 5% of the price in closing costs to purchase. I know of several good lenders who can handle 10% loan to value downpayments. Call me. Creativity is also important, try "walking" mortgages, finding sellers who will carry notes or refinancing other investment properties or your home to raise enough cash to buy more property!!
3) Management- probably the most critical part of maximizing the investment, poor management can create many problems. Handling the maintenance, repairs, collecting rents, renting the property and dealing with problem tenants can be a serious time commitment and difficult for absentee owners.
4) Timing- Real estate is tied to the economy and renting, selling or refinancing can be difficult at times. It is always best to buy when you don’t have to buy and sell before you truly have to sell.
5) Understanding the business of real estate can be complex! This is why calling me can help! I know the area the market and Investment real estate!
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