So all of these factors have left us in the midst of one of the greatest financial crises in U.S. history. As the housing and credit collapses converge into a global crisis, we are faced with an economic downturn of significant but unknown proportions.
Even though the financial future for the country as a whole is unclear, what is certain is that the economic crisis will have predictable results for various groups of home investors.
While each home investor's situation is ultimately unique, from a macro perspective there are four general categories of possible home investors' situations. They can grouped as financially:
- Secure
- Safe
- Danger
- Restructured
Each of these categories has general characteristics with many shades of gray in between. However, the risks the economic downturn presents for each category are very similar in principle. The graphic below shows the characteristics and the risks associated with each category.
Follow this link to read more about the risks and characteristics associated with the real estate investor categories...
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