The risk you take lies in not receiving and working with the proper information. You have to verify that the property really is worth $450,000 or more to get a good deal. Take time to gather comparable sales data and verify it with a strong, trustworthy market player to learn the real value of the property.
Think about any activity you do—any business you are in—and think about how having the right information limits your risk. How do you acquire the information you need?
- Try and fail; try and fail and learn (as I did).
- Learn from others; get a mentor (recommendations available by calling my office, 888-302-8018).
- Study, read, and attend classes at every stage of your business.
- Apply, experience, and improve—analyzing what works for you every step of the way.
If you get stuck on any deal or believe that the risk is too great, ask yourself: What information can you get that will reduce your risk? Whom can you call to get that information? Searching out the answers to these questions will greatly reduce your risk when making real estate buys.