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Real estateinvestinghas historically seen high returns.
But investing in real estate isnt always the right call.
Here are some of the top signs.
Also seethe key to real estate investing success and eight ways to find it.
If cash flow is already lacking, purchasing property will likely only set you back even more.
With no cash buffer, the smallest costs can arise and be assumed as a debt.
If you have poor or spotty credit, you might not qualify for financing.
And if you do, you might end up with a high interest rate or limited terms.
A higher interest rate in particular can affect your profits, according to Richardson.
Your total profit is just $100.
This might not be a financial setback, but it can limit growth potential.
If you dont already have decent cash flow, this can definitely set you back financially.
Investing in a fixer-upper could pose a lot of risk.
Thats why fixer-uppers in particular are oftensuch a major riskand should be carefully assessed before investing in.
Real estate is a long-term game of building wealth throughmainly cash flow, appreciation and depreciation.
You Havent Done Enough Research
As with any investment, real estate carries its share of risks.
Real estate takes credit, capital, time, effort, expertise and grit to be profitable.
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