1 min

BIGGEST RISK with Peter Badger Commercial Real Estate Pro Network

    • Investing

J Darrin Gross
I'd like to ask you, Peter Badger, what is the BIGGEST RISK?
 
Peter Badger  
The BIGGEST RISK is the macro risk that you, as an owner or investor, do not follow a very data driven due diligence process before you buy. And so I can sit here with my risk matrix and my process, and I go through it. And that's the irony of this, you need to have a risk process, a due diligence process to follow Darrin and most people don't, if I had $1, for every time somebody took a recommendation from a friend, or went to the internet, downloaded a nice glossy marketing brochure and trusted somebody. I there's a there's a famous quote from Ronald Reagan, when he met Mikhail Gorbachev. And I don't know the Russian saying, but it was basically trust, but verify. And that's what you have to do. So the biggest risk for me is that you don't verify you don't have a process, you don't have a due diligence matrix with all these areas to look at, you don't follow the data to make sure that what people are telling you is actually true or not, that they have the track record that they have considered all these aspects in that asset class that you're considering owning.

J Darrin Gross
I'd like to ask you, Peter Badger, what is the BIGGEST RISK?
 
Peter Badger  
The BIGGEST RISK is the macro risk that you, as an owner or investor, do not follow a very data driven due diligence process before you buy. And so I can sit here with my risk matrix and my process, and I go through it. And that's the irony of this, you need to have a risk process, a due diligence process to follow Darrin and most people don't, if I had $1, for every time somebody took a recommendation from a friend, or went to the internet, downloaded a nice glossy marketing brochure and trusted somebody. I there's a there's a famous quote from Ronald Reagan, when he met Mikhail Gorbachev. And I don't know the Russian saying, but it was basically trust, but verify. And that's what you have to do. So the biggest risk for me is that you don't verify you don't have a process, you don't have a due diligence matrix with all these areas to look at, you don't follow the data to make sure that what people are telling you is actually true or not, that they have the track record that they have considered all these aspects in that asset class that you're considering owning.

1 min