My BIGGEST RISK you know that's yeah it's the liability we had we've had people die on the property. It's just as you grow a business you can't be the one doing all the jobs you have to entrust people and you hope that they're doing an effective job. You've interviewed them. You coached them you mentor them and their job and you can't be there with them all the time.

Real Estate Investor tax payer classifications:

Passive: This applies to the investor who invest in other investors deals, ie a syndication. 

Active: This applies to investors who invest on the side ie; flip homes, landlord.  This is not their primary occupation.  

Professional: This applies to investors who spend more than 700 hours active in real estate; analyzing deals, talking with brokers, raising capital, working with contractors, tenants, etc.

I would say the biggest risk as a real estate investor myself that I would face would be failure to prepare. You know going into a deal not analyzing it or not understanding the scope of the work involved or understanding what kind of what level of commitment time commitment or cash commitment it's going to require from you is detrimental. We've seen that cripple people in the past and I would be the first one that comes to mind.

Your First Multifamily Value Add Purchase can be overwhelming.  

Brandon Blount and his partner pulled the trigger and lived to tell the tale of their first multifamily deal and are now looking for their next opportunity.  Reading books, listening to podcast, and talking with investors helped them create the plan, but they soon learned, there is no substitute for experience.

There's a couple there's a couple of factors to that. I mean in any building there's the physical risk right. There's what you can't see. So there's the plumbing there's the electrical there's the things going on behind the wall. So there's a certain amount of risk that you can assess and mitigate. What we used to call it, "Known unknowns".

Think BIGGER Real Estate Show is Facebook Live event where Justin Stoddart shares ideas and methods for real estate professionals to help them build, grow and scale their brand and business.

Justin is real estate and marketing entrepreneur.  He started in real estate as a custom home builder.  Since then he realized his passion was building people rather than buildings.  Today he works with real estate agents as a representative at Old Republic Title in Lake Oswego, OR.

I think actually interviewed a gal yesterday and she said. I asked her the question which is kind of my signature question get on my shows which is, "what do you do to intentionally think bigger? And I 'think it's a great response actually for your question. She said I work too. I work really hard to avoid complacency.

Qualified Opportunity Zones were created in the 2017 tax plan passed by congress.  

Following is from my second conversation with Real Estate Accountant, Jonathan McGuire, from Aldrich Advisors.  In this we dive into the clarifications provided Treasury Department draft proposal of proposed regulations.  Eventually, final regulations will follow. In the second round, a path from inception to exit strategy has been made clear.

I would say the BIGGEST RISK is not taking a serious look at Opportunity Zones. If if you don't do it and put put a little bit of sweat equity into this to see if you can you can make a deal fit inside of a zone. If you have a project underway or a potential project that you're looking at I mean you would be doing yourself a disservice if you have property or a business that it's going to be located in the zone and not take advantage of this.

Tim: [00:00:10] Sure. Great question and I pay a lot of attention to this because I've seen people make a lot of money and lose a lot of money in real estate. I want to make sure that I'm not making the same mistakes. The BIGGEST RISK, in me and my model and my business is probably tightening up of lending, tightening up of the banking. And so when I know how do you mitigate that right. Because my model is based on refinancing in 12 or 18 months.