Risk Tolerance

Risk Tolerance

Risk Tolerance



Lets talk about risk tolerance!

You wanna buy your first investment property but youre a little bit concerned about the risk involved. 

You wanna be able to identify your tolerance to that risk and so we name the risk by identifying what the risk is. 

We number it by identifying how much it could affect our bottom dollar and then we numb it by implementing risk mitigation strategies. 

For example, you might be looking at an investment property that has current tenants in it.

Let's name that risk - the tenants may move out after you buy the property.

Let's number that risk - how much rent could you lose potentially in dollar wise while you are looking for new tenants.

Now, let's numb that risk - we save up the deposit that is set aside to act as a kitty for us if those tenants vacate.