Risk is a funny thing … you can’t avoid it completely no matter what you do. I take a risk that I am going to hurt myself when I get out of bed every morning. And, often I do. I stubbed my toe just yesterday walking quickly to get to the phone. I have scars and bruises all over my legs from different accidents … usually from doing little more than walking.
I’m not trying to trivialize risk. Instead, I want to point out that we take risks but we usually do so with an understanding of how high the risk is relative to the reward. You should do the same with your real estate investments.
When you’re making an offer on an investment property think about all the risks that you can’t control … and if there’s a big one like I’ll discuss in this video … make sure you factor that into whatever price you offer to pay on the property.