5 Types of Risk Every Real Estate Investor Should Know About

High quality 3d render of a miniature house on a blue financial chart. Housing market concept. Miniature house is lit by the upper left corner of composition. Horizontal composition with copy space. Great use for real estate and morgage related concepts.

3. General Market Risk. All markets have ups and downs tied to the economy, interest rates, inflation or other market trends. Investors can’t eliminate market shocks, but they can hedge their bets against booms and busts with a diversified portfolio and strategy based on general market conditions. “What you don’t know can hurt you,” the Financial Industry Regulatory Authority (FINRA) notes.

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