How To Make It In Real Estate with John McNellis Part 2

Got it.

Now, what separates people who last in real estate versus those who won't?

It's all about risk.

What you have to be able to do, if you don't take risks, you're going to fail right away.

Without taking real risks, there isn't much in the way of getting a real reward.

If you set it up so that you take absolutely no risk, you're not a developer.

You're a consultant.

If you say, hey, guys, you put up all the money.

Here's a great project.

They're going to say, that's great.

Here's $20,000.

Here's your fee.

And you move on.

So you have to be able to analyze how much risk is in a deal, how you're going to deal with it and not take too much risk.

The guys who come in like meteors and just flame across the sky, you know, they get lucky, you know, and they mistake luck for brains and they think, ah, wow, I hit that one out of the park.

I'll do it again and again.

They take too much risk and it blows up.

So it's, It's analyzing how much risk is involved in the deal.

It's understanding it.

It's taking the risk, but not taking too much risk.

And how do you lower your risk profile? You put in more equity.

You put in less debt.

You don't try to grow exponentially.

In other words, here I'll use a simple analogy.

You sit down at a blackjack table with $1,000 and you start playing and you win.