There are a lot of risks that must be considered when a person is planning on buying investment properties. As is the case with any decision involving a large amount of money that is intended to boost the financial security of a person, it is particularly important to ensure that all pros and cons are taken into consideration and all of the risks have been carefully contemplated before making any major decisions. Below are some of the risks involved with the purchase and management of investment properties. Though it seems unlikely, when considering purchasing investment properties it is important to consider that possibility of a fraudulent sale, to make sure that you don’t get caught by a scheme like this one be sure to verify ownership of the property and purchase title insurance. Other risks that must be considered when investing in real estate are adverse possession, environmental contamination, building component or system failure, cash shortfall, economic downturn, tenants causing significant damage to the property, overpayment at purchase, market decline, fire, flood and personal injury and tax planning. In order to be successful in the purchase and management of investment properties the above listed concerns need to be considered as managing and evaluating risk is integral to the success of your investment ventures, know more at property investment seminar. These risks can come into play at any time throughout the real estate investment process and should always be approached with the utmost caution and be managed with the utmost care and consideration.There are companies in modern times that specialize in the purchase of properties that are in foreclosure for the purpose of reselling the property at a profit. In order for a property to be in foreclosure the current owner of the home has had to have been unable to make any mortgage payments on the property for a minimum of ninety days. Properties that are in foreclosure can be purchased at a foreclosure auction or even beforehand and if nobody purchases them, they are returned to the lender who owns the mortgage on the property. This is an interesting form of buying investment properties as the company who has purchased the property is likely to have gotten quite a reasonable price and will then be able to resell that property at a higher rate.Whatever avenue of investment properties you are intending to take, it is exceedingly important to ensure that you have carried out a substantial amount of research prior to any purchase, as with any major financial decision, there are a lot of risks that can come into play. Property investment can be a great source of extra income and can even be a sole source of income in some cases, but it is so important to ensure that the gains outweigh the risks otherwise you may end up losing money instead of reaching your financial and investment goals.