Similarly, while creating wealth in Real Estate the same holds true.
Investors need to enjoy the process of creating wealth in real estate. Typically, investors look at the returns, appreciation or discount to make investment decisions. When they find something attractive, they take on a high exposure either through large value of commitments or borrowings. Investors tend discount or ignore the potential risks of market correction, project delay or even default by developer.
Given the uncertainties of the markets as well as inheritent challenges of Real Estate development projects - it is imperative that we take positions that don't give us sleepless nights, stress and tension.
One of the key strategies to be insulated from market cycles & project specific issues is that of strong cash flow from passive income.
Passive Income is the income you earn irrespective of your time, effort or attendance ie your investments working for you. Or as they say 'Money working hard for you"
Wikipedia defines "Passive income" is an income received on a regular basis, with little effort required to maintain it.
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