One of the biggest issues is probably borrower default—whether due to mismanagement, market downturns, or unforeseen circumstances, lenders can end up in long, costly recovery processes.

How are you mitigating my downside exposure?

This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

It means your house might be your biggest financial asset — and it could open up some exciting opportunities for your future.

One of the biggest mistakes I see investors making is they forget to address things like HVAC, siding, etc when they have access to a hard money loan.

Do number, size, or area of investments owned play the biggest role in that decision? 

Just wanted to introduce myself.My name is Ariel, I am 32 years old (this Thursday), and I am making my first steps as a real estate investor.As I live abroad, most if not all of my work would be remote, and right now I am focusing on Jacksonville, FL.My main goal for this year is to fix and flip  at least 2 SF's properties, and for the next few years to increase this number, maybe do some MF, and possibly to also BRRR when I raise enough of my own capital.At the moment, my biggest challenge is the fact that I am remote, so I could use some help from a local realtor or management company.It's so amazing to know this community  exists, and I am thrilled to actually take part in it

A carryover basis would be a huge downside though compared to a basis step-up if held by parents until death. 

The 6% is a downside to investing in SC but the appreciation over time in the right areas makes it worth it all.  

One of the biggest factors in successful flips is building a strong team: contractors, agents, lenders, and property managers.