We’ve all heard the saying, “There’s no reward without a little risk,” but that doesn’t mean you have to bet the house every time you do a real estate deal. In fact, real estate is one of the least risky investments out there, assuming you are well-prepared and willing to put in the time to do your due diligence on a property. Wondering where to begin to get that preparation and education?
Here are three proven methods for minimizing risk in real estate to get you started:
1 | Take Control of the Details
There are multiple players in every real estate deal, and you simply cannot control every single thing that every single player does. However, you do need to take the time to evaluate the players’ previous performances and make sure that you, yourself, have your own responsibilities well in hand. Wendy Sweet, a hard-money lender and real estate investor with more than three decades of experience in the southeast, recommends thinking like a lender when you evaluate a deal and your role in it. “We all want the same thing, profit, but in reality, we can only control about 10 percent of what goes on in any deal,” she said. “Making sure you have taken your 10 percent and protected it from your own mistakes is imperative!”
Sweet said there are 12 deadly mistakes she has seen real estate investors make over and over again. She’ll reveal those 12 mistakes and help you take control of every detail you can at the Triangle Real Estate Investors Association (TREIA) Conference & Expo in Raleigh, North Carolina, on August 26-27, 2017. You can reserve your spot at the event here.
2 | Hedge Your Bets by Buying Low and Selling High
Every investor knows that at the end of the day, the key to succeeding in real estate is spending less money on an investment than you eventually get out of it. While there are many ways to achieve this goal, Ted Thomas, best-selling author and creator of the benchmark home study course, Quick Start to Buying Government Tax Lien Certificates and Tax Deeds, is the authority on one of the most accessible and reliable strategies out there. Thomas, who has sat for more than 200 radio and television interviews on the topic of tax lien and tax deed investing, has reduced the process of buying deeply, deeply discounted properties from local governments to just five simple steps that can often be performed entirely online.
“Imagine sitting at your kitchen table purchasing [tax liens and tax deeds] online in the U.S. and earning 16 percent, 18 percent, up to 36 percent and never leaving home,” Thomas said, noting that many tax lien and tax deed investors actually prefer not to ever take ownership of the properties but instead simply collect the interest on the debts until they are paid. “It’s a predictable, certain, and secure investment,” said Thomas, who will be presenting the details of his five steps at the TREIA event.
3 | Don’t Write Your Credit Off
While many real estate investors believe they cannot use their credit to fund their real estate deals either because they already have multiple mortgages or, in many cases, like many Americans they simply do not have sterling credit, the reality is “Your credit score is not a true indicator of your fundability,” Merrill Chandler, CEO and chief strategist at CreditSense.com, insists daily. He explained that real estate investors can leverage the same “credit playbook” that their underwriters use to shape and maintain their credit profile and warned that some lenders should be avoided at all costs no matter how good the funding looks at the time. Knowing all your funding options inherently limits the amount of risk in a deal because you will not only be able to get the best type of funding for your specific investment, but you will also make better decisions about your investing when the funding “elephant” is not such a big presence in the room.
Chandler will reveal five credit-transforming strategies uniquely tailored for real estate investment strategy at the TREIA event during his breakout training session on August 26. You can reserve your spot in that class by clicking here right now.
Want to learn even more strategies for minimizing risk and maximizing ROI? Click here to reserve your spot at the TREIA Conference & Expo powered by Think Realty and access pre-conference coverage and sneak peeks into the sessions at https://thinkrealty.com/.