Risk in Real Estate

Risk in Real Estate

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This material is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.

Full Transcript

With any investment, risk and return cannot be viewed in isolation. The old adage states the higher the expected return, the riskier the investment and vice versa.

The trade-off between risk and return means that for a given level of risk, there is an expected return that provides fair compensation, and conversely, for each level of expected return, there is an appropriate level of risk you may be willing to accept.

Naturally you want to be appropriately compensated relative to the risk you are taking. Traditional investments such as stocks and bonds have generally accepted measures of risk, providing individuals context to make informed decisions about risk and return.

Historically, real estate investing did not offer similar sophisticated and standardized measures of risk. Until now.

Realized has developed an approach for measuring and comparing risk in real estate investing. Based on generally accepted methods applied to analysis of stocks and bonds, and applying neutral, third-party data, Realized can create real estate investment portfolios, tailored to your unique situation, investment objectives and risk tolerance.

Risk management is a core concept of Investment Property Wealth Management®. We believe risk in real estate can be quantified with the same sophistication as traditional financial instruments, leading to more informed investing decisions and greater potential for long-term success.