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Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Now displaying: Page 1
Aug 18, 2020

Darrin Gross:

I'd like to ask you, Zachary Beach. What is the BIGGEST RISK?

 

Zachary Beach  

Yeah, it's a fantastic question.  The truth is we've we've transferred a lot based on your description, we've actually transferred or deferred a lot of the risk based on how we actually buy and sell real estate because the sellers still typically on title, and we have the ability to renegotiate based on our contracts. You know, we're collecting a non refundable deposit from our buyer. So that's limiting the risk. But if I'm just looking at it from like, purely what's going on right now, today's because we actually just came off one of our offsites that's our BIGGEST RISK would be if like there's a fear crisis that happens, meaning that people decide to no longer buy real estate, hoard money and stay where they are right? Or no longer want to sell property because there's so fear driven that they want to stay where they are. Yeah, I don't of course, I don't see that happening. But I don't have a crystal ball. But as I was alluding to earlier, it was we originally thought that people are going to start hoarding money. But then because of the tightening of the banks, it actually released some buyers that were ready to buy. So that kind of continues the cycle. So I would say that'd be the BIGGEST RISK other than, of course, if there's a complete market crash. Now, I want to say it's a risk to our current business model. It's not risk to being in real estate, because the truth is right now if you have the ability to buy on terms, but also continue to take your profits and put them away, because if the market crashes, then you're going to be able to buy property at a significant discount. So I would, I would say it's just the risk to our current business model. But we've kind of evaluated some of these things and we're working our best to set up for if the market prices again or crashes so it's just important to look at it from all the Different standpoints. But any real estate market in general, does matter if it's up or down, there's always opportunities available.

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