4.8 • 953 Ratings
🗓️ 3 June 2025
⏱️ 17 minutes
🔗️ Recording | iTunes | RSS
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0:00.0 | Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term. |
0:09.7 | And now, here's your host, Marco Santorelli. |
0:13.2 | Hey, everyone, and welcome to passive real estate investing. I'm Melissa Nash, your guest host, jumping in for now. Let's dive in. Today I am going to be going over a |
0:25.3 | question that I received from a client of mine. Now he is a new investor and he is buying an out-of-state |
0:33.3 | rental for the first time. Now they are very excited and in education mode. They are doing all the |
0:40.4 | things that they're supposed to do. Now, I helped recommend this market and particularly this team |
0:46.8 | that they're investing with because I know that they do a really great job on the renovations |
0:52.0 | and property management. So the question that he asked me |
0:56.7 | recently, now he's already signed the sales contract, he's going through his due diligence, |
1:01.1 | and he asked me, is there something that I should be looking for as far as risk factors? |
1:07.7 | So that is what we are going to dissect right now. I'm going to tell you what I told him. |
1:14.5 | Now, I've been doing this for a long time, over a decade. And I've owned a lot of properties in |
1:21.2 | A class areas. I've owned properties in what you'd call D class war zone. And I've owned properties in C-class, B-class. I mean, |
1:29.6 | basically every, you know, type of property in six different states. And you can have a bad tenant |
1:39.8 | in an A-class property. You can have a bad tenant in any of the different neighborhood grades. |
1:47.0 | You can also have a really good tenant in any of those grades. |
1:51.3 | I had a tenant for seven years in what I would call a D-class or war zone type area. |
1:58.2 | And she was the best renter I've had, |
2:00.7 | and I would gladly take her back to any of my |
2:03.9 | properties. So how do you as an investor look at different types of risk and what your risk |
2:13.2 | levels are? So if you can't necessarily define it by neighborhood grade, because this example is a |
2:21.6 | perfect example of that, how else can you limit your risk in an investment property, especially |
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