Real Estate Tip of the Day – June 20, 2012
All investing has risk and Real Estate Investing is no exception, although with a good REALTOR you can minimize risk and maximize profits.
Go Here For The Free Book of Real Estate Investing
One way to minimize risk is to have a back up plan. I was working on a buy and flip with one client and he was very concerned about what he would do if the house did not sell or if he could not get the price he felt he needed. Well this Real Estate Investor was paying cash and I knew he liked to Own Rental Properties; so I told him just to hang onto it and rent it out.
We looked at what type of rent he could get and it would have been a decent return. I also pointed out that after 6 months he could finance 75% of his purchase price back out of the property; if he needed the cash for other investments.
Having this back up plan eased his concerns and allowed him the freedom to Invest in a Buy and Flip Property. Fortunately due to our wise planning the back up plan was not needed; but just having it helped us move forward.
Comments(5)