Risky Business: Minimizing Real Estate Investment Risk

ROI Wealth Watch

There’s a saying: “The bigger the risks, the bigger the rewards,” which explains that nothing great in life comes to anyone who can’t take risks. It’s the same with real estate investments; the bigger you want your business and portfolio to become, the more risks you’ll encounter. That said, you don’t have to let risks ruin your financial dreams.

Today’s episode will highlight the risks every investor should be aware of as well as some of the strategies they can employ to not just reduce risks, but potentially avoid them altogether. We also teach you about some of the tools you have at your disposal when it comes to risk mitigation and discuss the various categories of risks you may encounter in the real estate industry.

“Anything you invest in comes with certain risks and real estate is no exception.” – Tom Obenchain

In This Episode of ROI Wealth Watch:

• Risk mitigation and approaches you can utilize to eliminate, avoid, and lower risks.
• The risks people think about the most
• How screening tenants can reduce risks significantly
• Overcoming fear of vacancy as a risk.
• What it means to make your property "bulletproof"
• Tools you can use to reduce or avoid tenant damage.
• How you can avoid structural obsolescence
• How you can use the U.S. Census to get information about housing.
• What is "absorption"?
• How do you avoid economic obsolescence?

Wealth Watch Words of Wisdom:

1. Use gap insurance to lower tenant risks.
2. Use a financial vehicle to save cash flow and provide an emergency fund.
3. Use 1031 exchanges to pass on CAPEX maintenance to the next investor.
4. Target properties that are between 40%-70% of the median home cost.
5. Get smart about market cycles.

Resources Mentioned:

• Economic Development Directory

Grab Your Free Gift!

Learn more about how real estate can deliver benefits that other investments can’t touch! Text “ROI” to 21000 to request your free, private link to our webinar video: The 12 Advantages of Real Estate. You can also text “ROI.1” to 21000 to get information on expert training when it comes to market cycles.

Help Others Buy Real Estate in the Right Markets at the Right Times!

Thanks for tuning into today’s episode of the ROI Wealth Watch podcast with Jared Garfield - your resource for learning to buy real estate in the right markets at the right times. If you enjoyed this episode, head over to iTunes to leave us a rating and review. Subscribe to the show so you never miss an episode, and visit our website to grab your free gifts!

And, if you’re looking for the best turnkey rental properties to invest and renovate to maximize your real estate portfolio, visit the Rich Life Real Estate website to view turnkey rental opportunities or speak with an investment advisor for more information.