Any new venture can be intimidating, and that’s certainly the case with real estate investing. I hear questions constantly from new or prospective investors who are worried about risk. Sure, there are horror stories about investors who lost it all, but if you play your cards right and put a few safeguards in place, you are very unlikely to encounter issues.
In order to mitigate risk in real estate investing, you should know that you can’t do it alone.
It’s important to build a strong team that is well versed in the areas that you are not. Without the right team in place, you’re likely to make some mistakes.
It’s also incredibly important to not overspend.
Don’t overspend on the purchase of the property. Don’t go overboard with upgrades either. When you pour too much into your properties, you’re decreasing your overall return. Check out my videos on the top three renovations that are a waste of money, as well as how to determine how much to spend on a rehab!