I am on the verge of taking the plunge in REI here in Austin, Tx and wanted to introduce myself and perhaps find a few folks to distribute risk as we learn this process together; primarily buy and holds.Currently, I work for a LARGE warehouse lender, specializing in risk mgmt, rate pricing, and hedging strategies.

Whatever they find that's not up to their requirement has to be repaired or ripped out and redone.The risks will be all on you if this is done after closing, so if you go that route get as large a discount as you can. 

The fact that you declined someone is a risk by iteself, legidimatly or not - if you never formally decline anyone, you eliminate the risk.

It wasn't an easy decision to make, but at this point in my career I have the risk tolerance to be able to make this kind of a decision, and I thank all of you on BP for being an inspiration in my career thus far.

The key is to screen properly, collect a deposit commensurate with the level of risk a particular tenant presents, and have tight processes in place to stop problems early.

While it could take months and result in more damage, the seller will assume the cost and risk while I stand by.Alternatively, I could make a much lower offer for the house and tenant.

As an out of state investor myself getting a solid team together is important but at the same time spending time yourself in those cities to understand the nuances of each of the areas as well as your risk tolerance is also going to be important.  

There is a lot of hard work, disapline and studying that can propel you into a great future.What minimizes the risk of losing it all is to continue building up your current profession until your Real Estate Investments make you financially free.

You need Builders Risk insurance.

My experience in the past with Property Management is that I take all the risk and they get rich by hiring their brother and other contractors who charge 80% more that I could get it done for.