RCRE - Risks are Opportunities

Jake & Gino: Real Estate Investing & Multifamily

Jake & Gino

Smartinvesting, Buyingrealestate, Investing, Multifamilyrealestateinvesting, Business, Investingsmart, Apartmentinvesting, Management, Makingmoney, Realestateinvesting, Cashflow, Jakeandgino, Realestateinvestment, Commercialrealestateinvesting, Buyingapartmentbuildings, Entrepreneurship

4.9 • 842 Ratings

🗓️ 4 December 2019

⏱️ 31 minutes

🔗️ Recording | iTunes | RSS

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Summary

Dylan Marma and Mike Taravella discuss the risks when investing in a multifamily syndication: Interest Rate Risk - This is the risk that as an investor you become less able or unable to cover your debt burden. Liquidity Risk: Risk that the investment is not able to be sold at the planned time. This is amplified in the event of a high point in the market, or being in a distressed position in need of a "fire sale". Funding Risk: The risk that the general partner falls short on their raise. This is common in the event of a fund when investors are required to invest via a capital call. Concentration Risk: The risk of loss due to having all of your eggs in one basket or being overly concentrated in one asset/asset class. Credit Risk: This applies largely to debt investments or to real estate investors dependent on tenants. You run the risk of having a poor quality tenant and/or having their credit drop during the holding period. Inflation Risk: The risk of loss in purchasing power because the value of your investments does not keep up with inflation. Horizon Risk: The risk that your investment horizon is shortened due to an unforeseen circumstance, such as a fallout of the partnership. Political Risk: This is the risk that some level of political event/ordinance poses a threat on the operations or profitability of the business. Currency Risk: Currency risk is the potential risk of loss from fluctuating foreign exchange rates Operational Risk: The risk of loss as a result of inadequate processes and systems to support the organization. Contact Information: dylan@RandCRE.com MikeT@RandCRE.com For more information/to connect with Rand CRE: www.randcre.com

Transcript

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0:00.0	Welcome to the RAND-CRE show, commercial real estate with no stone left unturned.
0:10.1	What's up, everyone? This is Dylan Marma, bringing to you the RANDCRE show,
0:15.0	joined by our co-host, Mike Taravella. How you doing today, Mike?
0:18.5	You know, just living the dream, Dylan, making it happen with everyone.
0:22.7	Making it happen.
0:24.4	That's right.
0:25.1	It's about 8.30 on a Monday night.
0:27.4	It's been a strong start to our week this week.
0:29.9	And I'm glad we're making time for tonight's show.
0:32.9	Yeah, especially after Thanksgiving, still working, you know, over the food coma, but we're
0:38.6	definitely here excited today to talk about risk. There's a lot of different risks when looking
0:43.5	as investors, but really, when we hear the word risk, we should be thinking opportunity,
0:49.1	opportunities to gain GP, LP, opportunities to invest. So, but you need to make sure you're fully aware of all the risks when it comes to investing.
1:00.3	And this is one of my favorite topics to talk about.
1:03.7	It's something that we've talked about a whole lot with our team.
1:07.4	It's something we've spent a lot of time reading about.
1:09.7	And like Mike mentioned,
1:11.1	it's it really, the two things are tied together all the time. The amount of opportunity that
1:17.2	you're pursuing is typically tied to the amount of risk in pursuing it. And I believe this down to
1:23.8	the level where it's not just dealing with real estate investments or investments as a whole,
1:27.8	it deals with anything in life. If you're going out there and pursuing a job, which you have a
1:34.1	chance of getting, you're taking low risk, but you could probably assure that it's going to have
	...

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