In extreme cases, liquidity risk can cause you to take huge losses because you have to mark down
your property at fire sale prices to attract buyers.
Not exact matches
However, the Federal Housing Finance Agency's well - intentioned bulk
sales - to - rental program has the potential to destabilize markets that already have low inventories by taking
properties that could be sold to individuals
at market
prices and putting them in the hands of a few investors
at fire -
sale prices.
More than 14 million renters live in single - family homes in the U.S., but over the past year the sector has received much more attention from private - equity funds and other institutional investors looking to build large pools of rental homes by purchasing foreclosures and other distressed
properties at fire -
sale prices.
Auction
properties aren't always great deals — the auctioneer could set a hidden reserve
price on it, the minimum you must bid — but the potential to get a luxe residence
at «
fire sale prices» is such a big draw that, for many people, it compensates for the numerous potential drawbacks.