I am starting to build on my real estate investments as my introduction said not to long ago. Since I have joined BP I have been listening to many of the Podcasts and reading several books. The most recent one Podcast I have listened to is 122. The comments by Chris Clothier were awesome but the comments on Risk are Spot On!
I say this because I am a military pilot with a year away from retiring. I always enjoy talking to people about flying. I always talk about the fun and my passion for flying rather than the risks involved. My job as pilot is to understand the risk, learn about the risk, analyze the risk and mitigate the risk which is the same as a real estate investor.
As I learn more about real estate my confidence has increased exponentially; in other words I am learning how to mitigate the risks associated with real estate investing. My business model has become more refined and I am more confident in what I am investing in. I know what to look for and questions to ask. Simply put in my view, my mitigation of the risks is allowing me to see what real estate can do for me.
Does this mean I am bolder...no. As the saying in flying goes-There are bold pilots and there are old pilots but there are no old bold pilots.
I have progressed to where in the next month I am going to make my first attempt at a commercial loan for a mutli-unit rental. Win or lose on this presentation I will walk away with more education from my experience. Do I want private investors-yes and I'll take them but until private investors know me I have to find other means.
I know that it is easier said then done and there is a lot more to this. If anyone has anything to say or correct me on please do.
@Kenneth Picha , good post and from 1 military to another I know how difficult it can be to invest while still being active duty. The discipline that the military teaches helps a lot. I am interested to hear how your pitch goes on the Commercial Loan.
Well put, I like the comparison to flying and haven't thought of financial risk in general like that. I may have to steal that one from you, I hope you don't mind.
Thanks Gents. No problem at all that is why I joined up "Pro" on BP; I really believe BP is out to help and ensure the success of others.
I think flying and real estate investing are great comparisons. I actually use that often when talking to others about real estate.
I think the risk similarity is right on. "Risk-free" is an illusion in investing, flying, or life, so risk mitigation and risk awareness, as you said, are the key.
I think the best at this in the investment world is Warren Buffett. His #1 rule for investing has been not to lose money, and that is all about mitigating risk. He certainly looks for a return, but he is first and foremost attempting to estimate the risk that a certain purchase will lose principal. Once that criteria is out of the way, he'll then proceed to look at other factors.
Thanks for sharing! Best of luck with your commercial loan.
Chad Carson, CoachCarson.com | SC Agent # 79709 | Podcast Guest on Show #141
@Kenneth Picha I fly a SR 22 we have an out it he whole plane parachute... if we use it 99% survivable is the stat.
In RE there is no chute... you really need to be spot on there will be no soft landing if your not. I am sure you will do well... and that is a good analogy.
Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222
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