Commercial Real Estate Pro Network

BIGGEST RISK with Travis King

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Synopsis

J Darrin Gross I'd like to ask you. Travis King, what is the BIGGEST RISK?   Travis King It's a great question. It's actually really hard to try to encapsulate it in one thing, so maybe I might give a multifaceted answer, if that's okay with you. One thing I would say that is paramount in real estate, and I alluded to it earlier, is the only real way I know to lose money in real estate is to lever inappropriately. So leverage at the end of the day, that's how you lose control of your properties, right? And that happens. So then I you peel that onion a little bit and say, Okay, well, how does that happen? Right? How do you run into problems there? And I think there's two main areas that I would focus on as kind of sub points. Number one is going to be making sure that you're checking your assumptions and making sure that they stand up in a lot of alternative scenarios you might not have considered, right? A perfect example was back in, remember, during the housing bubble of of 2008 when everything popped, they