Page 13 121 - 130 of 131
Managing Risk and Real Estate
There is a degree of risk when it comes to life, in general. Those who drive risk getting into accidents. Those who step off front-porch stairs risk tripping and falling. The good news here is that people are generally prepared to reduce, or mitigate, such risks. For instance, most will drive defensively, stopping at stop signs, looking before proceeding, and yielding the right of way. A home owner or house visitor will scope out any impediments before descending those porch stairs.
Managing Risk Exposure On Existing Investments
As a real estate investor, you’re very keen on working out cash flows and appreciation of a property. But what about the various risks inherent in all properties? Are you managing your exposure to different risks? Are you aware of the specific risks that come with each property?
Risk And Its Role In Your Portfolio
When you sit down to figure out your investment strategy, the issues you might examine are financial goals, what type of return you might want, and what assets are available for acquisition, at a cost that makes some sort of sense. Also important is how much risk you’re willing to accept for a given return to meet your financial goals. It’s a good idea to understand your level of risk tolerance, to ensure that you make the investment decisions that are right for you.
Macro Risks Enlightenment
In previous articles, we discussed risk and its impact on investment decisions. A return on a particular investment might look really great on paper. But, if you can’t deal with the possibility of losing part, or all, of your entire principal, that investment might be better off avoided.
Risk-Adjusted Returns: In Plain English
Picture this. You are with your financial planner, talking about different ways in which you can boost the power of your investment portfolio. Then he or she throws out the term “risk-adjusted returns” when asking about investment decisions. If you are scratching your head about risk-adjusted returns, tell your financial planner you will get back to him/her. Then, read this article.
Where Are You Taking Your Risk?
There is no surprise that real estate investing stands as an attractive opportunity for individuals trying to grow their wealth. Real estate investments cater to diversification1, while allowing for the potential of steady risk-adjusted returns backed by real property. These potential returns that investors look for don’t exist without the onset of a degree of risk, however, making these kind of investments not all rainbows and butterflies - some investment objectives may vary. Whether it derives itself from the market, tenant, or even financing of the property, risk is assumed in a variety of ways and differs property type to property type.
Limiting Your Liability: Mortgage Financing Risks
A recurring theme in our writings is managing risk in real estate investing. While most investors understand that debt can be a powerful tool to enhance returns, it is a “double-edge sword” that may increase the risk profile of an investment. However, a lesser understood risk of mortgage financing is its potential to increase losses beyond the amount of equity invested.
8 Ways to Mitigate Risk in Real Estate Investing
Part 3 in the Realized Series "Risk Management and Real Estate" Part 1: Risk In Real Estate Investments Part 2: How to Reduce Risk in Real Estate Investing “Quick buck artists come and go with every bull market, but the steady players make it through the bear markets.” -Lou Mannheim to Bud Fox, Wall Street (1987 film)
How to Reduce Risk in Real Estate Investing
Part 2 in the Realized Series Risk in Real Estate Investments Part 1: Risk In Real Estate Investments Part 3: 8 Ways to Mitigate Risk in Real Estate Investing
Risk In Real Estate Investments
Part 1 in the Realized Series "Risk Management and Real Estate" Part 2: How to Reduce Risk in Real Estate Investing Part 3: 8 Ways to Mitigate Risk in Real Estate Investing
Page 13 121 - 130 of 131
