It also helps save money and in your first deal or so, that is often very important and necessary.Now, as an investor becomes seasoned, part of that is the ability to build systems and not do the manual labor (or at least minimize it to very small functions).

After doing some research I contacted her (friend/agent) the next day, and true enough the property was listed for 109 days with minimal offers.

For me this increases the likelyhood of positive cash flow and also minimizes the risk of having to carry the whole mortgage yourself because there are (or would be) two tenants sharing that cost.

Not exactly helpful to your question, but not a bad side business for him with minimal effort.

Also networking will help but its far from the secret pill to being successful.

Being completely new to real estate investing, I am looking to minimize risk as much as possible with the understanding that in commercial investing is riskier than residential.

We did lose some money on the deal, but only a minimal amount.Absolutely do not just hand the borrower a chunk of cash.

Joe: imo, you get a personal guarantee for the same reason you require some of their money in the deal, for the same reason you require monthly payments vs all at the end, for the same reason you take additional collateral if available ... so they get up in the morning, go to work and finish the darn thing.And of course you keep the LTV low enough so as to minimize loss if things do go sideways.

I did manage to conclude my REI business with minimal damage - $50,000 seed debt obligation from private lender.

Check with a local mentor on how to minimize risk when it comes to getting a non-payer out.