Bruce: I'll tell you I the to me, the BIGGEST RISK that I face and my clients base is the fact that they could have issues and get wiped out from their assets by not being protected in a fashion that they need to be. And what I've done to mitigate and offset risk is I I'm one of those firm believers that if I'm going to promote something, be involved with it, I need to be a student of it and have it myself. So I and my wife we both have a trust.

Darrin: [00:00:08] I wonder if you could you could speak to what you see as one of the biggest risks you face. And if you could describe how you guys go about managing that risk. [00:00:17][9.3]

Vinney: [00:00:17] I would love to love to Darrin. I think in the apartments business especially because we are dealing with so many residents and different lives of residents and their capability of paying rents and everything. The biggest risk I find is the occupancy going down. I mean that is a huge factor.

a Cost Segregation Study breaks down the property into faster depreciation lives than the normal straight line, twenty seven and a half (residential) or thirty nine years(commercial). Instead of taking a small deduction every single year, the IRS allows you to reclassify or segregate out the costs of everything in the property to these faster depreciation lives. Thereby, resulting in greater depreciation deductions and greater tax deductions in the early years of ownership which equal greater cash flow.

One of my biggest risks or perhaps the biggest risk next to just executing the deal which is why we have managed management company and house. We want to we're going to win or lose on our own account. Then I would say the next biggest risk and in some ways even larger is debt maturity risk.

Darrin: [00:00:07] What do you see is the biggest risk that you face or that investors face. [00:00:13][5.3]

Neal: [00:00:14] OK I'm going to take that as a real estate question not necessarily as a you know overall macro question that would be another show. It's an. So firstly it's not interest rates. Read what our new Fed chairman is talking about. Read what all of the different governments governors are talking about. At this point,

Darrin: [00:00:09] What do you see as the biggest risk that people face. [00:00:12][3.1]

Ross: [00:00:14] Well first of all there are many risks. But if I had to boil it down; look if something has gone wrong let's say it that way because not everything goes 100 percent the way you want it to. This is, there's no guarantees in investing in real estate but it almost always comes back to people.

Darrin: [00:00:08] Can you. Can you speak to what will you see as the BIGGEST RISK investors face. [00:00:12][4.0]

Matt: [00:00:13] Absolutely I would say a big one is especially for a lot of newer investors and they just get this deal fever. They finally won the negotiations. They had the property under contract and you know not doing under full due diligence i s one. You know things with the cast down drain lines.

Q: Is there an area of risk or uncertainty, not necessarily with an insurance answer, but is there anything that you you feel is a risk that you are constantly aware of that you're that you work, to deal with?

A: I would say, the risk in the syndication world is the SEC.

The dictionary definition of to syndicate is “to pool together”.  

Together, investors can do more than they can on their own.  For multifamily investing, it means pooling investor funds for the purpose of buying a single property.  

As such, Ben and his partner Sam Grooms focus on finding multifamily value add opportunities in Phoenix, AZ where they pull together investors to invest in a large multifamily properties.

Q: BIGGEST RISK is and if you could then share with this how you go about managing that?

A:  I think most people assume that the market, the economy is the BIGGEST RISK with in real estate.  Historically, it’s true, interest rates have a huge component to that in terms of the pressure that puts on it.

Obviously we saw that with the big crash.  We saw how the markets reacted in the fall of the real estate market based upon the banking industry. That is a component of what we have to deal with.