Risk - one of the most critical factors to consider in making any investment! Risk in real estate investing exists because the market place is imperfect, and seldom can real estate investors make perfect projections or forecasts of investment performance.

There is , however, a difference between risk and uncertainty. With uncertain outcomes, no reliable information exists to determine an outcome’s chance of occurrence. In contrast, investors can use their own assessment of an investment with information that allows them to judge the risk in each investment alternative.

There are several categories of risk as it affects real estate investment, and in later issues of this newsletter we will address these in greater detail.