Illiquidity refers to the inability to quickly convert an asset into cash without a significant loss in value. Real estate is considered an illiquid investment because of the time, effort, and costs required to sell properties.
Liquidity refers to the ease with which an asset can be quickly converted into cash without significantly affecting its market price. This concept is crucial in financial and real estate contexts, as it influences the ability to sell assets promptly and efficiently.
A Non-Traded Real Estate Investment Trust (REIT) is an investment vehicle that offers the tax benefits of a REIT while maintaining privately-held features similar to a limited partnership.
