• Real estate isn't always easily liquidated.House for sale image by Heng kong Chen from Fotolia.com
  
  Investing in real estate can be a lucrative strategy to build your financial portfolio. Television programs show "flippers" who buy properties, perform some minor repairs and sell the property for far more than what they paid. Books and articles talk about getting rich in the real estate market. While it is possible to make a great deal of money in real estate, investing in property comes with great risk. Compared to other types of investing, real estate is just as risky as the stock market for someone who doesn't understand investment complexities. There are several reasons not to invest in real estate.
  
  

It Can Get Personal

• The biggest mistake that people make when investing in real estate is choosing a property that they fall in love with and believing that it will be an easy sell. The problem with this concept is that people's tastes differ. Successful real estate investors study areas, trends and values. They think of properties the same way they think of investment bonds. They fall in love with the potential return, not the property itself. Unless you can separate your head from your heart, you should not invest in real estate.
  
  

It's Not "For Dummies"

• Books and TV programs can make anything appear easy, but the fact is that real estate is hard work. According to "Real Estate Investing for Dummies," investing in real estate is not as simple as writing a check and waiting for the property's value to increase. Remember, there are taxes, liabilities, special assessments and the force of nature to combat. When you are dealing with unhappy tenants with a flooded basement, no book or television show will be there to help you through it. If you are unwilling to contend with what can sometimes feel like a full-time job, you should not invest in real estate.
  
  

It Might Not Sell

• Buying real estate is a long-term investment strategy. One of the mistakes that investors make is in thinking that properties are easy to sell. Neighborhoods change, tastes change and most of all, prices change. If you think you may want to sell your investment property in the short term, you should not invest in real estate.