Following the recent bailout / takeover of AIG by the government, other life insurance companies including Prudential are holding their hands out wanting a little of our tax money to soften the impact of their unwise investment in
risky real estate loans.
It has lesser exposure to
risky real estate loans, as compared to other banks.
Not exact matches
In the quest to compensate for low fixed income returns, pension funds have plowed money into stocks, private equity funds and illiquid and very
risky investments, like subprime auto
loan securities and commercial
real estate.
Non-asset holders were punished — their bank deposits now generate little or no income, and they were forced to move into
riskier assets, such as stocks, bonds,
real estate, or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind of market distortions does the Fed
loaning out money at 0 % cause?).
Loans against
real estate are not as
risky as personal ones and therefore lower interests are charged.
It's remarkable that more lenders in troubled areas do not take advantage of the FHA program, and it's also remarkable — and hardly shrewd — that the FHA is willing to touch the
riskiest loans in the worst - hit
real estate markets.
Loans against
real estate are considered less
risky as they are secured by the property.
Secured
loans against
real estate properties are least
risky and therefore come in good enough amounts to pay off other expensive
loans.
This Cash FIREhose is a more
risky investment, because if the
real estate market turns south, these investors may be unable to pay these
loans, and property values could fall to a point where it is not possible to recover all of the principal in a foreclosure sale.
This is a more
risky investment, because if the
real estate market turns south, these investors may be unable to pay these
loans.
Interest - only mortgages have gotten a lot of ink lately, but there's another type of potentially
risky home
loan that deserves even more scrutiny, according to some in the
real estate industry.
But to start off, choose one since it's
risky enough that you are new and inexperience; you don't want to rack up more debt on top of your student
loan and not to mention the possibility of failing class due to a huge amount of time is needed for
real estate (do not spend hobby time on it, you'll get no where since it's actually harder to own one property than multiple).
Although the
loan is easy to acquire and interest rates are low, fix and flips and
real estate investmenting in general can be a
risky endeavor.