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Always consult a licensed real estate consultant and/or financial advisor about your investment decisions. You wont be dealing with physicalproperties and tenant calls at 1 AM about a leaking pipe. Real estate investing involves risks; past performance does not indicate future results.
In the event of a total losswhen the property is destroyed beyond repairthe lender may utilize the insurance proceeds to pay off or substantially decrease the outstanding mortgage obligation. This ensures that the lender is fully compensated even if the physicalproperty is lost.
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