Risk Management For A New Investor

[Russ Maynard]

Hi

I am new to this site and intend to finally get into real estate investing. I’d like to start with a small Single family or duplex to get the first deal going, learn something and build from there.

I understand “He who will not risk, cannot win”-John Paul Jones 

I also dealt with risk in the military and now commercial aviation. In both arenas we mitigate risk through detailed planning and great training as well as putting “handcuffs” or limits on ourselves. A new guy won’t fly into the same weather as a seasoned aviator. What are some controls you have used early on to keep yourself out of trouble?  Leverage is great when it’s working for you…how about when it’s not?

In aviation, we never put ourselves in a box where there’s only one option like having an alternate destination if the weather at our intended destination is bad. How do you structure acquisitions so that you don’t end up with nowhere to land (in real estate I guess the closest analogy would be losing the property, your investment and lowering your credit worthiness).

Thanks in advance. Sorry for the aviation analogies…it’s what I know.  My other interest of music doesn’t seem like it has a good analogy 😂