10 Mistakes Every Investor Makes & How to Avoid Them
problem, but it simply does not fit into his rules for investing.
Therefore, he would pass on such an opportunity.
Secondly, these rules provide a clear exit strategy with deadlines.
The investor knows going in that he can potentially make $20,000,
but more importantly he also knows the potential that he can lose by
not selling the property in a certain amount of time. By having a
backup plan, and a backup plan for that plan, the investor minimizes
the downside and eliminates the need to make an important decision
that is influenced by emotion or hope.
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