Overcoming Fear of Using Debt

3 Replies

Hello Everyone,
My name is Ethan Rapier. I'm looking to get in to real estate investing and prefer to do by and hold rental units.

My question today is what are some ways to protect yourself from defaulting on a loan you have for a property? I agree not using Debt to purchase wouldn't be smart due to all of the advantages that come with it. I just have a fear of defaulting on debt and want to be able to put myself in a safe position.

Any help would be greatly appreciated. Thank you.



@Ethan Rapier

By having enough reserves AND setting aside monthly cash flow towards your reserve, that is an important way to avoid default. 

But the most important thing is to run your numbers right, when you're buying. 

Nothing wrong with being fearful of debt - if you can use the fear towards a productive and positive mindset instead of a destructive one. 

You just need to keep educating yourself and keep an open mind. Good luck! 

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