Tools for negotiating deals

[Alison Feliciano]

I am curious as to what tools are being used by investors to manage risk and limit lost on transactions. Please share.

[Jon Klaus]

I think more of strategies than tools, but here are the top two that come to mind:

1) Don't pay too much. Make sure there is enough margin in the deal for good profit, and then some more to cover whatever may go wrong.

2) Multiple exit options. If plan A fails, to be able to easily switch to plan B. For example on a rehab flip, say it doesn't sell for my target. Then it should also be the type of property that fits my rental criteria.