The Benefits of Relative Illiquidity of CRE and Regular/Annual Investment

Multifamily real estate is often considered to be a relatively illiquid asset, meaning that it can be difficult to quickly and easily convert it into cash. However, this relative illiquidity can also provide a number of advantages for investors.

One of the main advantages is that it can help to reduce volatility in the market. Because multifamily properties are not as easily bought and sold as other assets, such as stocks or bonds, they are less likely to be impacted by short-term market fluctuations. This can provide a sense of stability for investors and can help to protect their wealth over the long term.

Another advantage is that it can help to discourage impulsive and emotional decision-making. The relative illiquidity of multifamily real estate means that investors are less likely to make hasty decisions based on short-term market trends or emotions. Instead, they are more likely to take a longer-term view and to make more thoughtful and strategic decisions about their investments.

Investing regularly in multifamily real estate can also help to mitigate the effects of illiquidity, by providing a steady stream of cash flow to the investor. This can help to provide a sense of security and stability. Additionally, by investing regularly, investors can take advantage of market fluctuations.

By participating in CRE investments regularly/annually the investor's money can be in a safe vehicle that is safeguarded from the stock market and can multiply over the years. The illiquidity keeps the money working in a cash-producing insulated asset that can double in value every 5-10 years.