Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.
My Property Investment Tip #19
Manage Your Risks. It’s actually very easy.
Now most people cringe when they hear the words “Risk Management” but STOP RIGHT THERE, you’re going to love how simple and effective this approach is.
Seriously… read this tip in full. It’s applicable in every part of your life where things could go wrong… like EVERY part of your life.
Now there are people who’ve made a lot of money from over complicating risk management. From writing massive ‘War & Peace’ risk management plans that by their very size, defend themselves from ever being read, let alone implemented.
But it doesn’t have to be that way!
Screw those guys and their tail wagging the dog bureaucracy! ? ?
Ever heard the expression ‘Prevention is better than Cure’?
Well that right there is as simple as all risk management needs to be…
Draw up a simple 3-column table. This is all you need.
1. Give the first column the heading “Risk – what can go wrong”
2. Give the second column the heading “Prevention Measures” as in what can we do to make sure it never happens.
3. Third column “Cure Measures” as in, if it does happen, how can we fix it.
So what can go wrong with property Investing?
– Value goes down
– Rent goes down
– Bad tenants (not paying rent and/or doing damage)
– Cyclone or Hail storm
– Pest infestation
– Structural faults
– Losing your job
– Interest rates going up.
– (care to add?)
All of these things can be completely avoided, or have their chances of occurring reduced to an absolute minimum.
And if they do occur, all of them can be easily dealt with if you have the right things in place.
So just think it through and fill in your table.
Now every one of my clients gets a complete Risk Management Plan matrix when they onboard as a client. If you would like a copy just drop your email address below (or pm me) and I’ll get my team to send you one for free.
Now ain’t I a nice guy ?
By the way, this method applies for every challenge you have. Try it at work for yourself. Think of a project you’re on. Gather your team around you (if you have one) and brainstorm together.
1. What can go wrong here?
2. What can we do to prevent each thing from occurring?
3. What can we have in place, that should that thing occur, we can easily fix it?
If you can’t find the answers, ask people with more experience than you. They’ll help with things you haven’t thought of.
Again, if you want a copy, drop your email here or by DM.