What Are Your Risk Return Objectives

Little- or nothing-down finance creates great opportunities for you to magnify your returns. Through smart borrowing, you can quickly pyramid your real estate wealth. But the more you borrow (all other things equal), the larger your risk. When you're highly leveraged, a slight fall in rents may push you into negative cash flows. A relatively small decline in a property's value may cause you to owe more than your property is worth. So steer clear of pie-in-the-sky optimism. Carefully work through the numbers for the deals that come your way. Carefully decide what profits are worth pursuing and what risks to avoid.

If you can't find properties in your favored area(s) that yield sensible numbers, look elsewhere. Increasingly, investors are moving their money from high-priced cities to lower-priced areas (surfloopmet.com).

Credit Score Booster

Credit Score Booster

There are many misconceptions about credit scores out there. There are customers who believe that they don’t have a credit score and many customers who think that their credit scores just don’t really matter. These sorts of misconceptions can hurt your chances at some jobs, at good interest rates, and even your chances of getting some apartments.

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