Five Key Risks of Today’s Real Estate Market


I just read a great article in the Wall Street Journal by Jonathan Clements about the 5 key risks of real estate in today’s crazy market. The risks he points to are:

1) Borrowing Too Heavily
2) Selling your property too quickly
3) Using ARMs to get a cheap loan – using adjustable mortgages in a rising interest rate environment is a dangerous formula
4) Not having a plan for financial emergencies such as medical emergencies
5) Skipping a property inspection because you just have to get the deal. A property could have very costly damage that you cannot simply see with the naked eye.

All the above are certainly things to watch out for. A word of advice – don’t jump into anything unless you’ve done ALL of your homework. Sadly, I have to remind people of this simple word of wisdom.

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Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 600,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.

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