Risk in real estate and how to treat it

Real estate risk and how to relate to it

Risk in real estate and how to treat it

 

Everyone has a post with a + personal value, a third round, the fourth post in the round
By Ido Neumann: Accountant and financial planner

An essential part of providing a solution to the client I accompany, both in accounting as a business and in financial planning as a private and family person, is actually the dismantling of the risk;
Investment risk, risk in respect of personal exposure, risk in respect of business exposure.

We as humans treat risk differently. What do you mean…?
This means that sometimes we do not really know the risk behind a particular investment and are actually guided by paradigms and perceptions we have received from the environment (at any age).
Here's an extension of my intention, it's important to read things from above to understand the idea

Let's introduce 2 options:
1. Put the money in the current bank in a deposit, but you are told that there is no backup from the state in case the bank falls ..
2. A loan to a real estate investor against a lien, a specific first mortgage on an existing property that is being leased (ie leased).
What is more dangerous?
Good question. The real estate investor gives me an existing property that I can check earlier so that in case of failure you are within two months - three owners of a house that generates income.
The bank actually did not give you anything, and in fact it uses your money to lend to several people. In the event of a large failure the bank closes, there is no money coming out and no money entered, and you are a creditor like all other creditors.
Because of paradigms and worldviews, the bank sounds safer but in fact it has no backing from the state and you have a creditor account like all other creditors.
As a comment - I'm sure no one asked and questioned his bank where he registered that he was obliged to give him his money on demand, as required and other investment investigators (and rightly so).

Let's take another example:
1. Investment in loans P2P, a liquid company that provides collateral
2. Investment in a group project in Europe that yields a low-reasonable current yield and the main profit is built on capital gains.
In fact, the investor will be more afraid of P2P loans because of the claim that "if everyone does not pay" (even though there are collateral) and less afraid of investing in a foreign country that he does not know the region and the market and that his profit is built from improvement and appreciation in that country.

There is no right / wrong ....
There is a suitable and inappropriate. You have to break the risk and see if it is right for you as an investor in terms of investment type, whether the investment is right for you in terms of adjustment to your financial planning,
And comparing the true risk of the transaction with other investment alternatives and the risk inherent in them (as well as return, exposure and dispersion)

The post is designed to reflect risk perception by different forms of investment and to open up thinking and vision.

Are always invited to brainstorming and advice on taxation and financial planning
050-9016087

Link to the original post on the United States Real Estate Forum on Facebook - Works on a desktop computer:
http://bit.ly/2D8mJn0

The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion

 

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