Re: Risk-free real estate investing - Posted by Brent-IL
Posted by Brent-IL on October 17, 2003 at 06:16:17:
I’d suggest that your plan to do double closings on houses is not without risk.
Subject-to is a financing technique that allows you to buy a property without transferring the loan risks that the seller has on that portion of the financing to you. Commitments that you make to a subsequent buyer are what add to the risk side of the equation.
For you to implement a double-close will require you to take a risk that you will not find a buyer that will allow you to close with the seller. There are risk-free investments in real estate that are close to being absolute, but they?re in the nature of well-secured capital investments. Flipping isn?t of this type.
If there is no risk, there is no reward worth pursuing. The basic idea is to learn how to use stop-loss techniques to manage the risks involved. You have time. Study first, and then proceed.