Investing in the real estate market can be a risky endeavor, but there are ways to understand and mitigate these risks. 

 

In this episode, Chris Rawley dives into financing and operational risks associated with real estate investments. He emphasizes the importance of understanding these risks before investing and shares advice on how to assess them. Chris also discusses red flags to watch out for when evaluating potential investments and explains environmental hazards such as market cycles. 

 

Tune in for an in-depth conversation about practical tips to help navigate the real estate market safely and effectively!

 

 

[00:01 - 02:53] Opening Segment

• Why analyzing and looking at risk in any investment is important

• Why you should consider financing risk

• How you can mitigate financing risk

• Working with people who have raised capital before and understand the risk

 

[02:54 - 04:34] Understanding Financing, Operational & Environmental Risks

• Financing risk and operational/execution risk are essential to consider

• Venture capitalists use pattern recognition to identify good/bad patterns

• Environmental risk includes market cycles, rents, interest rates, etc.

• Cash flow should be sufficient to weather market cycles

 

[04:35 - 07:13]Experienced Investors, Financing Risks & Environmental Challenges

• Invest with people who have experienced some bumps and hiccups

• We learn the most from our mistakes and failures

• Understand environmental and financing risks overlap

• Consider interest rates and adjustable rates when assessing financing risk

 

[07:14 - 09:10] Closing Segment

• Interest rates and favorable lending terms have gone and may be gone forever

• Current interest rates are not unusual

• How to learn more about investing in farms, ranches, and agribusinesses

 

 

Connect with Chris:

 

Website: www.harvestreturns.com 

LinkedIn: Harvest Returns

Instagram: @harvestreturns

Twitter: Harvest Returns

 

 

Key Quotes:

 

“Just because somebody's failed at something doesn't mean they're high risk. It just means they may be a little bit smarter and have learned some lessons.” - Chris Rawley

 

"We learn the most from our mistakes and our failures, and so if someone hasn't kind of gone through any sort of bumps in the road, then it's hard to know if they have the ability to tackle challenges that are inevitable.” - Sujata Shyam

 

 

WANT TO LEARN MORE?

 

Connect with me through LinkedIn.

 

Or send me an email at [email protected]

 

Visit my website, www.luxe-cap.com, or my YouTube channel.

 

Thanks for tuning in!

 

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