Hello,
Mitigate Risk in Real Estate Investing -
There are several ways to mitigate risk in real estate investing
are
- Proper Due Diligence is done before investing in any property,
checking all the legal documents.
- Don't Overpay - Be ensure that you do not ave to pay an extra
amount of money. EX- if you buying an shopping center confirm about
the prices per square feet.
- Know about real estate Cycle - Expansion, contraction,
Recession, and recovery
- Focus on the multifamily rentals - Renting Multifamily
properties is less risky than the single house property, because if
the one portion is vacant other will be let out.
- Focus on the small appartments this will help in the recession
time.
- Buy and hold strategy is one of the best way to mitigate
risk.
- Always take a long term loan say 25-30 years, because if the
interest rate low between you can repay the previous loan by taking
a fresh loan.
I hope this clear your doubt.
Feel free to comment if you still have any query or need
something else. I'll help asap.
Do give a thumbs up if you find this
helpful.