But if I look at a more global risk to my business and really to the market as a whole, I think you've got to think about the economy and what causes a real estate downturn and what influences a market to go from being a very hot market to a very cold market. And really its activity. So when activity dries out, when people stop buying properties, people stop selling properties and people have fear when people are thin or they don't move

Lior Gantz is the founder and editor of the number one rated financial newsletter, Wealth Research Group. 

At 12 years of age, Lior had to go to work out of necessity.  His father’s business was struggling, and there was no money. He hustled, babysitting, teaching basketball, and delivering goods to others.  By the age of 16, he had saved $20,000.

His banker suggested he invest his money to earn greater returns, and Lior was hooked on passive income.

Lior: If you asked me what risk is, risk is not knowing what you're doing. That is that is the BIGGEST RISK. The second biggest risk is not knowing the people you're investing in. The smaller the business, the more you need to know about the people running it. The bigger the business, the less you need to know about the people running it because the the culture is already set for growth. So when you invest in Google, you don't need to know the 40,000 employees and how their life are going, etc.

Mindset is the first thing Real Estate Investors have to get right to become successful.  

Rod Khlief is an experienced investor, author, podcast host and mentor.  He has owned over 2000 single family residents and hundreds of apartments.  He also lost millions in the crash and has since recovered. His ability to rebound is directly attributed to the power of mindset.

I will tell you my BIGGEST RISK as I see it, and I thought about this before we started this podcast. Is we are right now in the inner stage of the market called irrational exuberance. And I just told you, I've got, I don't know, 220, 230 coaching students. And my biggest risk is, is communicating to them, they damn well better not buy a property without running it through our system first and making sure that it's been stress tested and and and they're not taking people's money.

FEMA is the agency within the Department of Homeland Security that controls the National Flood Insurance Program.  

Scott Van Hoff is the Flood Insurance specialist with FEMA.   Real estate investors need to know, now more than ever, how to determine if a property is in a flood zone that will require flood insurance.  

FEMA

FEMA stands for Federal Emergency Management Agency and is responsible for the National Flood Insurance Program, NFIP.

Well, the biggest risk. Well, what concerns me, looking looking forward when we're talking about the issue of flood insurance is this this changing of the sea level rise and the changing of the risk, especially in our coastal areas. This especially thinking from the perspective of a homeowner or somebody who's making a long term investment, you might be, you know, in this location, in this home or owning this property for a few decades.

Wealth Creation is all about mindset.  

Dovid Preil has worked in all different aspects of real estate, from mortgage brokering to multifamily syndication.  The through line he has found in all successful real estate investors is mindset.  

Importance of Mindset 

Mindset is based in knowledge and experience.  Without either, you are left with fear. The fear is a recognition of the risk, and risk is rooted in the probability of loss.  Fear of loss is powerful.

The BIGGEST RISK is going in with the wrong people. You know, anything can happen. And if you're working with good, honest people, you're the best chance of coming out ahead. I think the more interesting answer, though, is, is what what the biggest risks real estate is. That's a topic, which I find to be fascinating, because I think the answer is technology and all the advances we've had in technology and we're having. I think that that poses a very, very interesting longer term thesis.

Cost Segregation Study takes an engineering approach to determine what the components of the building are.  Then, it breaks the whole building into its components parts. These component parts are then categorized as personal property, and assigned a life expectancy of 5, 7 or 15 years.