Since I am not paying him a dime more until work is completed, I think my downside is somewhat mitigated.

If you add value, that is another way to mitigate risk.  

The risk of losing money in a trust deed investment is mitigated by a built in “margin of safety,” because the investment is secured by REAL property.

Certainly, going from a paid off property to taking a loan will always increase risk, but there are some ways to mitigate that.

I've invested in Indiana and I recently purchased a SFR but I've never even been there..you might think I'm crazy and maybe I am but, I think I've done all I can to mitigate the risk of losing money on my investment that I just trust my team that I've vetted.Reach out to me anytime you'd like, hope you can find that determination to take action.Originally posted by @Tomer Royter:@Lionel Li Hi Lionel, as I am in a similar situation as you wanting to get into REI in NYC I've found it very difficult to find good cash flowing investments, I'd love for you to elaborate on how you got into investing OOS and exactly which turn-key provider you used.Would also love to have a conversation if possible :)

This is a way to possibly mitigate your legal fees

To try and mitigate this problem, we did install 1.5" of Poly Iso foam board on the exterior, and installed the Hardie board in a rain screen fashion for durability, but also to block the noise infiltration and help with the thermal bridging through the studs.

@Christopher Smith is correct that you can hold these assets pesonally and mitigate risk through other means, but really is up to you and what you feel is best for your situation.

If you want to include both properties in the  purchase the sales will have to fall so that you can include your replacement property on the first 45 day calendar and that you can close on the replacement during the 180 period of the first sale.That leads into another  question of how to strategically mitigate risk of the time lines. 

This mitigates some of that risk.I recently used this strategy to get a buyer a home in Halifax that had just been completely renovated.