Evaluate Risk before buying

By
Real Estate Mortgage Broker with Liberty One Lending

Here are 3 thoughts to consider when evaluating risk before deciding whether or not your next real estate buying opportunity really is as good as it looks.

1) Comfort level - too much stress, fear , and unhappiness, are lingering effects of taking a risk larger than you may want to handle

2) Can you afford a loss - if there is one thing this difficult period in real estate has taught us, is that real estate is not guaranteed to go up forever, ask yourself if you can afford to hold your real estate years and years past what you had hoped.

3) Opportunity cost - deciding not to buy that "good deal" may be the best investment you ever make. Experts will tell you that there are always other buying opportunities. If you have the money in your pocket and the ability to make a decision when it presents itself you may find that opportunity that you could not have take advantage of if you had purchased that deal on which you passed.

Yes, There are a lot of great deals. and yes, We All take Risks in Life; personally and professionally.

The purchase and finance of a home is a risk that most people take. Historically, it has been very rewarding.

However, be prudent, make sure you have done your research, have double checked your finances, and have properly evaluated risk

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Topic:
Real Estate General Information
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investing tips advice

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Rainer
3,296
Jason Bolden
Attorney at Law

Great comment.  I certainly agree with Number 3.  Opportunity Cost is a factor that I think a lot of investors over look.  The best deals that I have made have required me to be able to act very quickly.

April 12, 2009 10:07 AM
Anonymous #2
Anonymous
Anonymous

Scott,

You're absolutely right with your article.  I, like you, go through a great deal to ensure my client's risk is greatly minimized.  We even went so far as to guarantee cash flows on investment properties for our clients.  In this type of economy, people are looking for solid investments.  Let's keep on providing them, Scott!  Thanks again for the article!

Kyle Koller

July 29, 2009 06:17 PM
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Rainer
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Scott Skinner

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