Posted by Jim on October 30, 2000 at 03:18:01:
There is always risk in investments. Even in a ‘No Money Down - 100% Owner Financed’ deal, there is a margin of risk (I’ll take ALL of these you can find). Using traditional financing and personally guaranteeing the mortgage(s) and/or note(s) puts your risk factor very HIGH. You have to weigh the “RISK/PROFIT” factor.
When making offers, I always look at the risk to calculate the amount of profit I NEED to make for the deal to work. I alway try to put myself in a ‘Hard to Loose’ situation when buying or selling.
Some of the “GURUs” do teach these techniques to help you to structure ‘offers to sellers’, so as to off set and/or minimize your risk.