Real Estate and it Risky

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  • Hersh ShahBusiness Member
    Realtor · Atlanta, GA · Member since 2016 · 121 posts · 80 votes
    2d

    @Agrie Ahmad Good question to ask before you buy, not after!

    To get useful input, provide more context about your strategy so it can be tailored to you. Different strategies have different pros and cons.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2d

    too many risks to name as it relates to real estate. I would start researching more about real estate and understanding the type of real estate you want to get into, then that education will slowly have you learn the risks involved.

    I would argue the biggest risk for new investors is lack of liquidity/cash reserves.

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  • Michael Dumler
    Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    1d

    @Agrie Ahmad

    To piggyback off Chris — the biggest risk for new investors is not fully understanding the importance of maintaining adequate reserves. I've heard too many stories on these forums where someone has a compelling deal, but then something like the HVAC goes out and they don't have the funds to cover it. Not a position you want to find yourself in.

    The other significant risk is not understanding how debt works. Generally speaking, any investment that involves debt exposes you to greater risk. For more insight on this, I'd recommend Real Estate by the Numbers by J. Scott and Dave Meyer.

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  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    1d

    Bro you gotta get the grammar and sentence structure a little more clear to be taken seriously. I type from my phone all the time and have crap grammar and misspell works, but that title doesn't even really make sense.

    The risk is doing things without thoroughly researching them first. Use the internet and spend 30 days doing nothing but researching the risks of Real Estate. Than come back and ask a specific question based on your research that only someone with experience would be able to answer. Then you are on your way to understanding risk, putting in the hard work it takes to become an expert, and properly using this forum to extract real value.

    Asking "Real Estate and it Risky" is too vague, too poorly researched and too grammatically incoherent to get any good answers.

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