chapter  7
19 Pages

The risks of real estate investing

ByAdam Gower

Before diving into the financial terms, let’s consider the risks of investing, and first let’s look at them from the developer’s perspective. Like you, developers want to make money on their deal. But because real estate is a zero-sum game, they have an inherent conflict of interest. Any given deal can only make a finite amount of money, and that has to be portioned out somehow. Whatever money one party gets, another party doesn’t get.