Question

what barriers to entry are there in the real estate market?

Answer 1

Barriers to entry are as follows -

1 financing - capital is basic problem as borrowing of initial funds is not easy as no securities and collateralize a loan.

2 experience - investors and lenders won't trust a newbie.

3 bureaucratic red tapism.

4 Too many middlemens like banks, mortagage houses , Or many agents etc

5 Not performing due diligence for example properties sold countless times may be a bad investment so proper planning, research and skills are needed.

6 . Liquidity problem with investors .

7. Proper and efficient working team and setup.