An investor is considering putting their investment dollars into real estate. They ask for your advice about the pros and cons of real estate as an investment. Which of these is one of the disadvantages you would tell them about? The rate of return on most real estate investments is lower than other investment options It's difficult to find a lender willing to give you a loan to purchase real estate It can be hard to access your investment capital quickly. The market fluctuates wildly on a day-to-day basis.

Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 5DQ
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An investor is considering putting their
investment dollars into real estate. They ask for
your advice about the pros and cons of real
estate as an investment. Which of these is one
of the disadvantages you would tell them about?
The rate of return on most real estate
investments is lower than other investment
options
It's difficult to find a lender willing to give you a
loan to purchase real estate
It can be hard to access your investment capital
quickly.
The market fluctuates wildly on a day-to-day
basis.
Transcribed Image Text:An investor is considering putting their investment dollars into real estate. They ask for your advice about the pros and cons of real estate as an investment. Which of these is one of the disadvantages you would tell them about? The rate of return on most real estate investments is lower than other investment options It's difficult to find a lender willing to give you a loan to purchase real estate It can be hard to access your investment capital quickly. The market fluctuates wildly on a day-to-day basis.
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