How to Reduce the Risk of Investing in Passive Real Estate Story

How to Reduce the Risk of Investing in Passive Real Estate

In any investment, there is risk involved. Without risk, there wouldn’t be possible returns. Real estate can be viewed as risky by many because of the big numbers involved. When things go wrong, there can be a lot of digits in the numbers.

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Today I want to share the five things you need to do to reduce risk in a passive real estate deal. Don’t pass over these steps to save time.

Five things to do before investing in passive real estate

Get to know the sponsor’s track record

You’d find out all you can about the surgeon who will be holding the knife. You want the best surgeon in charge to ensure a successful operation. Read More

Understand how the deal is being financed

All you have to do is think back to the origins of the 2008 financial crisis to realize the role financing plays in real estate. Bad real estate debt that couldn’t be paid back created a domino effe ct that ultimately affected the entire economy. Read More

Besides producing passive income, investing in syndications lets you take advantage of markets you might otherwise not consider. Here in California, it’s a challenge to find real estate that provides cash flow.

Consider environmental risks

From flood zones and fires to tornadoes and hurricanes, every region of the United States has some risk. Find out if there will be upgrades that mitigate damage to the building. Read More

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