What is one disadvantage of direct real estate investments such as rental properties?

Direct real estate investments, such as rental properties, come with several advantages and disadvantages. One significant disadvantage is illiquidity. This means that real estate investments are not easily convertible to cash compared to other assets like stocks or bonds. The process of selling a property can be lengthy and may involve various costs, such as real estate agent fees, repairs, and closing costs. Unlike stocks that can be sold almost instantaneously on a market, selling a property often requires time to find a buyer, negotiate terms, and complete the transaction, which can tie up an investor's capital for an extended period. This characteristic can be a barrier for investors who may need quick access to cash or wish to adjust their portfolios rapidly in response to market changes.