This allows new investors to gain experience while minimizing risk and maximizing returns right from the start. 

If not, understand the risk of taking equity to generate more equity based off your ROI.

Hi Chris, there are several options you could consider, but it would all be based on your risk tolerance. 

What are ways your clients are mitigating the risks of losing money in their deal analysis?

It's really hard to predict where regulation will go and it is indeed one of the risk factors for all investments.

A duplex strategy is a low-risk entry, saving on living expenses.

Quote from @Devin James: Quote from @Dominic Mazzarella: Quote from @Devin James: Everything went wrong with this investment:   - Took 4 months longer than expected   - Cost $10K more to build than we anticipated   - Sold for $20K less than we anticipatedWe still profited with a 30% return on equityThis is why I love Real Estate InvestingWhen you do your diligence and stay conservative with your numbers, it takes something really bad to lose money.Here was the original post:My siblings and I are building a home in North Port, FL.Here are the numbers: - Finished Home Value: $412Kish - Land Cost: $19,750.39 - Construction & Permitting Costs: $304,897Additional costs: - Environmental Site Assessment - General Liability Insurance - Builders Risk Insurance - Construction FinancingWe will be listing the home this weekPhotos coming soon!! 

One great thing about fix and flip loans is that there is no early payoff penalty, so the original lender's commission is not at risk!

This ensures you will be notified if your tenants cancel their coverage or have a lapse.Adding you as an additional insured would open you up to any claim they would make which  would be a huge risk because those claims would follow YOU for any other purchases you would intend to make for at least 5 years.Your homeowner/landlord policy will provide the liability protection if something was to happen.

Essentially the lenders will be taking a risk on the property if they overvalue it.