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Real Estate

The Basics

What about the liquidity of a potential real estate deal?

When you use liquid assets such as cash, money market funds, or CDs to fund a real estate deal, you may be pulling money from a very liquid investment, and re-investing the proceeds into one that is not very liquid. At the very least, the potential real estate investor needs to ensure that his real estate investment is earning at least the same amount of return that it would receive if he left his money in a cash-based account.



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