Putting Too Much in Illiquid Real Estate Deals
Investing in real estate deals always seems like the right call. After all, people will always be interested in the domain and prices can only go up, right?
To be fair, investing in real estate isn’t the worst thing you could do with your money. However, it’s not the safest decision either. Real estate deals are not liquid. This means that, when a deal doesn’t work, you can only wait and hope that the project sells and you get at least part of the money back.
In situations like these, it can take years for things to sort out – if you’re lucky.
Overall, smart financial decisions are all about patience, moderation and knowledge. It never hurts to invest some of your money in new areas if you get the chance. Just make sure that your overall financial comfort isn’t affected if things don’t go as planned. This is the key to a happy retirement!