Why is Liquidity of Real Estate Bad for Investors?
Liquidity sounds good when it is done safely by the commercial real estate broker companies in Westchester County , NY . It gives a safe transaction of the asset from a tangible matter to a huge pile of cash in a matter of minutes. These are the assets we have used to get a high return on investments every time. That is the reason why using them to get your hands on the bright side of liquidity is okay. It is also acceptable when you want to liquidate a property that is not going to give high returns on investments like the way you used to get. These are all okay but liquidating property in good shape is a loss on your book. Giving the Magic Lamp to Rivals Abruptly liquidating a property gives a high return on investment like giving the golden goose to your rivals. One of your rivals will be getting more net worth than yours for a year. They would beat you by a lap or two at the end of every year. Hence, liquidating will give a short relief in an economic crunch. Sad to say