Posted by Bob Taylor on October 17, 2003 at 08:51:30:
I could not agree more with Brent.
However, the upside to that is the fact that most of the time the bigger the risk, the bigger the reward. That has been my findings.
But, at any rate, Brent pretty well called it.
Good luck, and, good investing,
Bob Taylor…Alabama
Risk-free real estate investing - Posted by Mario F. Lister
Posted by Mario F. Lister on October 16, 2003 at 23:13:45:
Hi. It has been awhile since I last posted here. As you know, I have been getting survivor’s benefits since my father died (I was diagnosed as emotionally disabled since two.) and I want to jump start my rei business. I have a lot of real estate books and courses (Carleton Sheets, Ron LeGrand, Bill Bronchick) along with the Simple Man’s Guide to Real Estate. Since the SMGTRE teaches risk-free investing, I though I would combine it with other authors and make risk-free profits. Is it possible to do that? (I plan to stay away from Subject to’s, since they involve risks.) I plan to do double closings on houses first and then move on to other things. Anybody here doing similar kinds of investing and, if so, is it possible? Could you people help me out and give me some ideas, examples, and materials? I would appreciate them.
Mario F. Lister
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.
Re: Risk-free real estate investing - Posted by Bryan-SactoCA
Posted by Bryan-SactoCA on October 17, 2003 at 15:15:18:
I think Kiyosaki said it best: don’t try to avoid risk, learn to manage risk. That means that risk should be proportionate to reward. Lots of newbies take huge risks for very little reward, and then end up in trouble.