Education is paramount to success in any endeavor but when we are speaking of investing it is most important to consider its impact on risk.
Investing is widely regarded as a risky pursuit by amateurs and those who are uneducated in the field. To professional investors, a person’s education or knowledge of an investment is by far the single greatest determinant of risk. A well-educated investor can always walk away from a ‘risky’ deal.
A lack of knowledge sees so-called investors get into difficulty time and time again. Whether it’s the first time investor who just bought a house in a bad location that is losing money or the guy who thinks he’s smart because he has a nice paper profit after some blind luck in a stock market boom. Chances are that if they don’t know what they are doing they are headed down a bumpy road.
Full article… Education in Real Estate Investing: the best risk mitigator
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Filed under General, Getting Started by Scott Roemermann
