In today's post I want to continue educating you on exactly what low-risk real estate investing is all about and it's importance to your having a long-lasting real estate investing career that is profitable!

Contrary to what you see on the reality tv shows on real estate investing like "Flip this House" and "Property Ladder" - I love those shows by the way - the business of real estate is a little more complex than what is conveyed on these shows! For starters, it is funny to me that many of the people do not follow the advice of their real estate agent, and in more cases than not this ends up being a HUGE mistake almost every time! One of the major tenets of Low-Risk Real Estate Investing is leveraging the knowledge and expertise of mentors or seasoned professionals to insure your success and to mitigate and/or eliminate your risk! In real estate, a hard head, eventually equals a failed deal in many cases....

For example, the BIGGEST MISTAKE I see commonly made by new & experienced investors is having a sales price that is too high and their logic is we can always negotiate and/or lower the price when people inquire! What they don't realize is that 79% of all people who buy a home start their search on the internet and when they are viewing properties many get eliminated by price before they even view the details of the property! So that means that even though you have the nicest floorplan on the market, a huge master bedroom ya-da ya-da ya-da.... they never even see this stuff because they eliminated or didn't look at your property because the price was above what the market says it should be! The bottom line when you are selling ANYTHING is that price is usually the most dominant factor and if you get that wrong you may be doomed from the start!

The other aspect of pricing the property wrong, is that many people wait far too long before lowering the price which costs them time and plenty of money in holding costs (interest payments to the bank!) only to lower the price anyway and in many cases they end up with a sales price much lower than what they could have sold the property for had they initially priced the property right from the start. My philosophy on pricing is simple, don't ever be the highest or the lowest but instead you want to price yourself right in the medium range of where most of the homes in the area are selling! ANYTHING WILL SELL FOR THE RIGHT PRICE!

Well this concludes part 2 of What is Low Risk Real Estate Investing and I trust that you will have a safe and warm weekend. Be profitable in all that you do!

Another tenet of Low Risk Real Estate Investing is knowing when to bring in cash partners to properly finance your deal! I can recall a few deals that I did, where if I would have brought on cash partners it would have actually enhanced my profit, eliminated some head-ache and allowed me to finish the deal much faster. In many cases, the reason people don't do this is because they are being greedy and do not want to share the proceeds of the deal however that kind of thinking can prove to be fatal to your investing career! Always, make sure you have access to more than enough money to complete your deal!

For many of you, these may seem to be very elementary topics however I can assure you that it is the application of this type of simple wisdom that seperates the really successful investors from those who are mediocre! In fact, when I think of some of the most successful investors I know, they were all very simple people who had 1 or 2 basic strategies that they employed and they did the same thing over and over again. Ever heard of the KISS system? Keep It Simple Stupid! I can assure you that if you follow and employ the KISS system in your investing business it will reap huge long term rewards for you.

Another aspect of Low Risk Real Estate Investing is taking the time to create a plan based on what your goals are for your investments in real estate! In every book that any of us have read on self improvement, they all say to have a written goal and plan to make that goal come to pass, however most of us (including myself) forsake this principle! Maybe your goal is to pay for your kids retirement via real estate or possibly you want to retire in the next 5 years; whatever it is, write it down and make it a conservative goal for now! As you consult with your mentor they can assist you with crafting a plan to make that goal a reality.