BIGGEST RISK with Larry Goins - CREPN Radio
Darrin: [00:00:08] I'm asking all my guests if they could identify what they see as their BIGGEST RISK. I'm not necessarily looking for an insurance answer but I was hoping you could share with the listeners what you see as the BIGGEST RISK to your investment operation or how you know what you what you see as the BIGGEST RISK? [00:00:26][17.7]
Larry: [00:00:27] Absolutely I'll be more than happy to and I know exactly how to answer this question. A lot of people think real estate is risky. Real estate is not risky. Being uneducated that is what's risky right. Once you get the education it takes the risk out of it. Now you also may need somebody to try to help you. Like you said you can take on that risk yourself or you can transfer that risk right or minimize that risk or transfer it. That's what insurance does. Right. But in real estate, I mean yes you've got to have property insurance. You've got to have liability insurance. You've got to have you know insurance if you're a licensed agent. But, you've also got to have education right. Education takes away the risk if you don't know how to handle something you need to either get educated or or be able to latch onto somebody that does. Like I have a lot of students, a lot of students we have a partner program. It's like a coaching and mentoring program where we help students and partner with them. And a lot of them will run into a situation and they don't know how to handle. They reach out to me. For example, just just a couple of days ago, a student messaged me and he said hey I've got this seller he's got a property. He took the property as payment for something where somebody owed him money but he did it to his son's name right. So. So how much should I offer him Bob. And I said, Well first of all you've got a problem you didn't even think you had. They deeded it to the son. The son is a minor. The son can't sign anything. So the court is going to appoint a guardian ad litem. I think that's what it's called, to to. To oversee that that transaction and make sure the seller, the son's parent, is acting in the best interest. Right. So there's all different kinds of things that you need to be aware of that you may not even know you have a problem yet. Right. So when I advised him about that I told him to talk to his cellar and find out if he knew that that was the case that he's going to have to go through that when he sells the property. [00:02:33][125.4]
Darrin: [00:02:34] So my next question is Larry that sounds like a lesson maybe you learned you learned is that hard. Did you run into that situation? [00:02:42][7.6]
Larry: [00:02:43] Oh, I ran into it years ago when I made a hard money loan in my son's name. And then the property got the property got in default and we had to we had to foreclose to get the property back and then sell it. And we had to do the same thing. We had to do the same thing to to be able to get title clear title to the property to sell it. Because even though I gave my son the money and and made the hard money loan in his name even though we did that we were acting is in his best interest. The court had to appoint an attorney to oversee that transaction to make sure we were still acting in the best interest of my son. [00:02:43][0.0]
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