RCRE - Risks are Opportunities

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By Jake & Gino. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Dylan Marma and Mike Taravella discuss the risks when investing in a multifamily syndication:

  • Interest Rate Risk - This is the risk that as an investor you become less able or unable to cover your debt burden.
  • Liquidity Risk: Risk that the investment is not able to be sold at the planned time. This is amplified in the event of a high point in the market, or being in a distressed position in need of a "fire sale".
  • Funding Risk: The risk that the general partner falls short on their raise. This is common in the event of a fund when investors are required to invest via a capital call.
  • Concentration Risk: The risk of loss due to having all of your eggs in one basket or being overly concentrated in one asset/asset class.
  • Credit Risk: This applies largely to debt investments or to real estate investors dependent on tenants. You run the risk of having a poor quality tenant and/or having their credit drop during the holding period.
  • Inflation Risk: The risk of loss in purchasing power because the value of your investments does not keep up with inflation.
  • Horizon Risk: The risk that your investment horizon is shortened due to an unforeseen circumstance, such as a fallout of the partnership.
  • Political Risk: This is the risk that some level of political event/ordinance poses a threat on the operations or profitability of the business.
  • Currency Risk: Currency risk is the potential risk of loss from fluctuating foreign exchange rates
  • Operational Risk: The risk of loss as a result of inadequate processes and systems to support the organization.

Contact Information:

dylan@RandCRE.com

MikeT@RandCRE.com

For more information/to connect with Rand CRE:

www.randcre.com

339 episodes