Real Estate Risk: How to Dodge It, When to Take It, and Using It to Build Wealth

BiggerPockets Real Estate Podcast

BiggerPockets

Investing, Education, Business

4.8 • 16.6K Ratings

🗓️ 4 September 2024

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Real estate risk can make you wealthy or cause your portfolio to come crashing down. Like any type of investing, real estate can be risky. However, the amount of risk you take changes depending on the deal. Today, we’re helping YOU figure out how much risk YOU should be taking based on your goals and then share some expert risk management tactics so you can be prepared even if a “black swan” event throws your entire real estate investing plan out the window. Ashley Wilson started investing in real estate at a risky time. It was 2009—nobody knew if the housing market would face another significant downturn and crash again. Thankfully, due to determination (and a bit of helpful ignorance), she invested at a time that turned out to be one of the best in history. Now, running massive multifamily real estate deals, Ashley has not only survived but thrived through high interest rates, a pandemic, falling rents, and economic uncertainty. What does she do differently than most investors? She faces her real estate risks BEFORE they happen, and today, she’s showing you how to do the same. We’re talking with Ashley about risk management, how much risk you should take based on your goals, the “buckets” of risk and what you CAN control, and what to do NOW to limit your risk of loss. In This Episode We Cover: Real estate investing risks and how to mitigate them before it’s too late Dodging black swan events and what to do BEFORE a rare risk hits you The controllable risks you can plan for NOW that’ll protect your wealth during troublesome times Risk profiles based on whether you’re building, preserving, or tax-sheltering your wealth Why shiny object syndrome will cause you more headaches (and loss) than you think And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Invest in Multifamily like Ashley with "The Multifamily Millionaire, Volume I" Property Manager Finder See Dave at BPCON2024 in Cancun! Today’s Real Estate Risks: What Are Investors Ignoring? Connect with Ashley Connect with Dave 00:00 Intro 03:38 3 Types of Investor "Risk" 07:22 Investing During "Risky" Times 11:18 The "Buckets" of Risk 14:46 Dodging "Black Swan" Events 18:52 Risk Mitigation Tactics to Use NOW 23:53 The Risk of Loss Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1013 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Real estate is risky, and that's just like every other investment.
0:04.5	After all, they say nothing ventured, nothing gained for a reason.
0:08.5	You do need to take some risk to generate reward.
0:11.5	And to me, there's nothing wrong with that risk is an important part of being an investor.
0:15.6	The key is to be taking on the right amount of risk given your goals, your preferences,
0:20.8	and your personal situation.
0:22.5	It's a trade-off.
0:23.5	The more risk you take, the more potential return.
0:26.2	Generally speaking, that is.
0:27.7	And the less risk you take, the lower your probable returns.
0:31.0	And like most things in real estate investing, there's no right answer.
0:34.0	It's about figuring out what type of risk reward profile is right for you and what you should seek out
0:39.1	and how to get the best quote-unquote risk risk adjusted returns for your portfolio.
0:45.0	Today that's what we're talking about.
0:47.0	What's up everyone? It's Dave for today's a deep dish episode.
0:56.0	We're talking all about risk.
0:58.0	What it is, the categories of risk and real estate,
1:00.0	and how to mitigate it.
1:02.0	And to help me talk about this we're bringing on a
1:05.6	longtime bigger pockets contributor and favorite Ashley Wilson. Ashley is an
1:11.0	investor, an asset manager, and an expert on how to mitigate risk in your portfolio.
1:16.0	I'm excited to bring on Ashley and have this conversation with her and ask her how to plan a portfolio
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.