Proj545
Professor: James Jameson
May 21, 2015

PROJ545: Risk Paper #1
Risk Paper Introduction
A few years ago I received some advice from my brother who at the time was a rather successful real-estate agent and previous real estate appraiser. He had built some wealth not only buy and selling houses for clients but also managed to purchase a few properties as personal investments. The advice I received was I should look at investing in real-estate. “You can look to me for guidance, I will not only make sure the property you choose makes sense on paper but I can also guide you through the renovation/remodeling process.” My family was no stranger to real-estate investment. My parents had for a long time been landlords and had purchased a few properties, renovated them churned a profit at the time of sale.
After a few years of receiving continued encouragement from my family to invest, I finally made the decision to make my first big purchase. I was never a fan of taking big risks but as I watched my family succeed in real-estate and did put my mind at ease. I was not naïve of the inherent risks and I did consider obstacles that I could face and or threaten my investment.
Identifying Risks
After making the decision to attempt my luck at real-estate, I started to gather ideas on what potential risks I would be most affected by.
My main sources of risk identification was braining storming and interviews with what were my “mentors” although they were family.
I “interviewed” my family a few months prior up until the decision and throughout the entire process of my initial investment. They briefed me on potential risks they may come up and how to handle them. Their goal was to provide a sense of reassurance so that I would not be surprised if such items would come up and how plan for them or handle them.
After the initial family interviews, I