Stay informed, investors urged

Anyone interested in the speculative real estate market should take heed.

Know your borrower, and know your collateral, said Lem Marshall, counsel for the Virginia Association of Realtors.

"You want to be confident about the credit worthiness of your borrowers -- that they have the income and assets and ability to repay the loan," Marshall said.

Investors also need to be assured of the collateral, that the property has value and is adequate to secure a loan, Marshall said.

Finally, one needs to be sure the title to their investment property is good, so no one else can make a claim against the property and the property can be sold to recoup the investment.

"If you lend money and take a security, be sure the security is worth something," Marshall said. "One way to do that is to search the title to be sure your lien has value." -- Carol Hazard