BIGGEST RISK with Zach Lemaster
2m
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Commercial Real Estate Pro Network
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J Darrin Gross
I'd like to ask you Zach Lemaster, what is the BIGGEST RISK?
Zach LeMaster
Oh, man, we're gonna get deep here for a sec. Darrin, I'm gonna get on my soapbox. But the biggest i and this is investing in general, buy, I truly feel this isn't this cliche, I truly feel that the biggest risk is doing nothing with your money, and not not paying attention to it. Because if you want to live the same life you're living now later in life than that, that's what you can do, right and one, one event could wipe you out one event and a health event, a loss in your job change in the market could completely wipe you out, you start over. So I just want to say that first and foremost, the biggest risk you can do is nothing. But when you're investing, I think there's there's so many different ways to evaluate risk. I actually think leverage D risks your investing. I like the idea of having adequate property insurance in place, we have portfolio policies and umbrella policies on all of our properties, we also do risk by having the right entity structure in place on our portfolio and separating it that out from each other and personal assets. We have all life insurance policies set up we invest for retirement vehicles, which are protected accounts, we also invested trusts, as well as having LCS those are all like portfolio structure that I think can de risk situations. Having the right insurance policy in place, I think is certainly important. But the the and there's so many different ways to answer this right at doing nothing is the biggest risk. And then I think secondary to that investing arbitrarily without knowing what you're investing in investing out without fully understanding something or having a plan and strategy. That is probably the next biggest risk that I see in investing real estate, it's a beautiful thing because you can man, you can really de risk it quite a bit. First and foremost, you're investing in a physical asset you're investing in and that's why we like residential real estate because it's human necessity housing, that's never going to go away. People always need a place to live and especially if you're in that kind of workforce housing, location like those are areas where you will always have demand and then you properly insure the property. You protect your assets with right entity structures. You have the right insurance brokers and professionals providing guidance bay that actually understand your goals. I think that is the biggest way to de risk so I probably went on too many And is there Darrin? So let me let me stop there.
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