Risk Management
Investing in real estate is not without substantial risk, which is why it can earn such profitable rewards. Understanding how to weigh, manage, and mitigate risk will define your long-term success in the industry.
Back To: All Topics | Operations
Risk Management
Investing in real estate is not without substantial risk, which is why it can earn such profitable rewards. Understanding how to weigh, manage, and mitigate risk will define your long-term success in the industry.
Back To: All Topics | Operations
Are You Overpaying for Landlord Insurance? Time to Do a Cost Comparison
A quality landlord insurance policy is absolutely essential for any rental property owner. But if you haven’t recently compared your rate to those currently available, you may be paying too much for your insurance. The problem is, it can be hard to know whether you’re overpaying or not unless you ...
Investors in the cannabis industry must carefully evaluate all factors affecting their target market to minimize risk. The California Gold Rush of the 19th century is an ideal study in risk management. The lure of unimaginable wealth and the romanticism of the American frontier pulled hundreds of thousands of fortune ...
Think Realty Podcast #266 – Protect Yourself with Lightning Docs
Did you know that if you fill out forms online for your business transactions, you COULD be opening yourself up to liability? Most free online documents are designed for consumer loan transactions but if you’re a real estate investor or work in the lending space, you now have access to ...
Deal Transparency: How Tech Pulls Back the Curtain
00:42:10 | Learn how private lenders are utilizing technology in their process to create deal transparency, the different tech solutions to add to your toolbox and how to be involved in the process with Bridge Loan Networks, Business Development Specialist, Jacob Therrien ...
3 Critical Areas of Risk Management
Ask a real estate investor about risk management and you are likely going to get a long discussion about entities, land trusts, and other vehicles to protect oneself from the potential liabilities of being a housing provider or an investor. While these are critical topics, I believe they miss the ...
Understanding the pitfalls of real estate investing is critical to building your real estate portfolio and longevity whether you are investing in residential or commercial real estate. One of the best ways to protect yourself is to be proactive and educate yourself as to where the risks may lie and ...
Most investors will evaluate potential investments and account for scenarios that would negatively impact their investment returns. They describe this as risk assessment or risk management, though technically it is a threat analysis (see my article in Think Realty in June 2020 for a more thorough explanation). Real estate investors ...
Real Estate: A People Business
The term ‘Risk Management’ in real estate often brings three things to mind: have good insurance, have a great attorney, and document everything in writing. It would have been easy to just focus and write about those three things, but you can find that anywhere. As an active real estate ...
The Ultimate Risk Management Playbook
In the real estate market, many rightfully worried the COVID-19 pandemic would lead to another crisis. But we didn’t see the 2008 housing collapse play out again, as some predicted. From January 2020 to January 2021, CoreLogic research shows the average home price jumped 11.21 percent, with total home sales ...
Is Investing in Rental Properties Worth the Risk?
Rental properties can provide a way to supplement your income and over time can lead to your only source of income. However, as with any investment, there are some risks. Listed below are a few pros and cons to owning rental properties. Fixer Upper If you’re investing in real estate ...
Risks of Real Estate Investing You Need to Know
Real estate investing has remained one of the time-tested ways to create wealth. While the potential returns can be compelling, it is important to consider the risks objectively and then make a judicious decision. Unpredictability Until the economic meltdown of 2008, many investors ignored real estate risks and assumed that ...
Realty Matters: Risk Management
When talking to prospective clients for my property management business, I always say, “rental property management is really about Risk Management.” I often tell the story of a client, who had previously decided to self-manage. Although he always tried to do the right thing, a small, innocent error led to ...
Reducing Risk in Rental Properties
There is always some risk associated with buying a property for the sole purpose of renting it out, whether on a monthly or a daily basis. But regardless of rental timelines, here is a checklist to follow that will help reduce your real estate investment risks. Budget Rationally The first ...
How many of you have heard knowledgeable real estate investors discuss risk? In sober tones they describe “risks” like loss of tenants, market risk, title claims, competition. And their “risk management” approaches are to always buy title insurance, don’t build if there are other projects in the pipeline, only buy ...
It was almost nine years ago and I was just starting out in real estate investing. I was driving to a local club to hear a speaker on buy-and-hold properties. I was considering getting a rental property in my area of Los Angeles, and didn’t understand how people were making ...
Self-Showing Lockboxes: What’s the Risk?
Over the past couple years, Property Managers have been besieged with several “new technologies” of "Smart Lockboxes” that allow a prospective tenant or buyer to enter and view a vacant property without the manager present. This is really an updated version of the older practice of checking out a key, ...
Protect Your Real Estate Investment from These Elements this Winter
Protecting your property in the winter can mean protecting it from the cold, but there are other elements that can be particularly punishing if you don’t develop a healthy respect for them, namely Earth, Water, and Fire. Read on to find out how you can protect your property from Earth ...
Clint Coons, founding partner at Anderson Business Advisors & Law Group and real estate asset protection expert has joined the growing list of Think Realty Resident Experts. He brings years of experience in portfolio risk management, tax reduction and estate planning, and he focuses on educating current and future real ...
KANSAS CITY, Mo. – Shawn Woedl, Senior Vice President of National Real Estate Insurance Group (NREIG) and a sought-after industry speaker and educator, has been named Think Realty’s newest Resident Expert. His first three courses are “Intro to Risk Management,” “Protecting Yourself and Your Properties,” and “Insuring Your Fix and ...
Many Property Owners Lack Sufficient Disaster Insurance
Hurricane season is underway in the United States, and a lot of homeowners who could get hit by bad weather are not adequately insured against potential damages. According to a Wall Street Journal report, the issue lies mainly in a lack of flood insurance, which usually must be purchased from ...
Federal Flood Insurance Program to Expire July 31
The National Flood Insurance Program (NFIP), a federal program offering flood coverage to more than 5 million property owners nationwide, will lapse at midnight on July 31, 2018, if it is not extended. The program, which has been extended six times since September 2017, is among the only options available ...
The Legal Kryptonite You Need to Fight Financial Vampires
He must have been sweating bullets when he got the news. John, a successful business man and owner of several car dealerships, got the call that his 16-year-old son had just rear-ended my car. Naturally, John’s first concern was the safety of his son. After learning that his son was ...
How to Reduce Real Estate Investment Risk
By Andrew Waite In 2011, HomeVestors with Local Market Monitor ranked The Best Markets To Invest in Rental Property. This list began by calculating the cost difference between renting and owning and by gauging overall rental demand. These calculations and the resulting list of “best rental markets to….” bring us back ...
