What are the risks involved in real estate investment?

There are several risks involved in real estate investment, including:

1. Market risk: Real estate prices can fluctuate due to changes in market conditions, such as changes in interest rates, supply and demand, and economic conditions.

2. Tenant risk: If you own rental property, tenant risk is the risk of tenants not paying rent or causing damage to the property.

3. Property risk: This includes risks such as natural disasters, environmental hazards, and property damage.

4. Financing risk: If you have a mortgage on a property, financing risk refers to the risk of defaulting on the mortgage or being unable to refinance the property.

5. Liquidity risk: Real estate is typically not a liquid asset, meaning that it can take time to sell a property and convert it to cash.

6. Management risk: If you own rental property, management risk is the risk of not being able to effectively manage the property, leading to vacancies, damage, or other issues.

It's important to understand these risks before investing in real estate and to have a plan in place for managing them.