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What is the first step a professional real estate investor takes when evaluating a deal?
What is the first step a professional real estate investor takes when evaluating a deal?
- Evaluate the impact of the risks on returns
- Understand the potential impact of the risks
- Mitigate the risks if possible
- Identify the risks in the deal (correct)
What is important to the investors when understanding risks in a real estate deal?
What is important to the investors when understanding risks in a real estate deal?
- Quickly mitigating any identified risks
- Understanding how the risks play through and their potential impact (correct)
- Ignoring risks that cannot be mitigated
- Focusing solely on the returns of the deal
What is the final action if a risk cannot be mitigated?
What is the final action if a risk cannot be mitigated?
- Pricing the risk and deciding whether to proceed with the deal (correct)
- Ignoring the risk and proceeding with the deal
- Seeking additional funding to offset the risk
- Selling the deal to another investor
What is described as the most important part of a professional investor's work when presented with a real estate deal?
What is described as the most important part of a professional investor's work when presented with a real estate deal?
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What is the primary focus of evaluating risk in real estate?
What is the primary focus of evaluating risk in real estate?
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What does a professional investor do if a risk cannot be mitigated?
What does a professional investor do if a risk cannot be mitigated?
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What is the significance of understanding the risks in a real estate deal?
What is the significance of understanding the risks in a real estate deal?
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