Credit or Mortgage Market Disruption
Mitigation: Rent the houses if sales or financing markets become difficult.
Over-Leverage or Market Downturn
Mitigation: Notes and operating agreement language referenced a 75% maximum loan-to-value limit for the LLC.
Interest Rate Increases
Mitigation: Reduce sales price or rent properties as needed.
Property Value Declines
Mitigation: Portfolio diversification and price reduction strategies were described as ways to force liquidation and reduce exposure.
Title Issues and Liens
Mitigation: Title searches are used to reduce these risks before purchase.
Property Condition Risk
Mitigation: Holding a portfolio of properties helps protect the company from a severe issue on any single property.
Tenant Lease or Bankruptcy Complications
Mitigation: The original site noted that individual transaction delays can be absorbed across the broader portfolio.