BIGGEST RISK with Victor Bell

J Darrin Gross

I'd like to ask you, Victor Bell. What is the Biggest Risk?

Victor Bell  

Well, if I can give an honest answer, it's short is not taking risk at all. Because it's real. I'm a real estate guy. So I take a look at all risks and try to assess it as like, Hey, how can we minimize risk and get the match return, even if to other people that return is not a very big. So a prime example like when I look at an apartment building deal, and I really like it, we start sizing the deal up, first thing we do is we look at the debt, we find a debt person, and then I try to get an insurance person on the team to say, hey, what do you think the insurance needs to be here? Could you give me an idea to quote and arrange? Because I recognize like, hey, there's two things that are gonna happen. And the most important thing to me is to make sure that I de risk my opportunities by saying, hey, there's a nicer thing. But we have insurance, we have somebody that can take a look at this and say, Vic, this is risky, or this is, you know, there's the cost is what you're looking at. And here's why. So I think the quality of asset going up, like we said, is the best way to de risk because it removes some of the question long term and short term and have somebody on your team that is in like, for guys like yourself, and it isn't an insurance thing. It's just real for me. I want to know, like, I don't gamble, when I go to Vegas, I go for conferences, I don't step one foot and play a slot machine, I don't do any of that stuff. So it isn't that I'm not aware of risk. But if you don't take any risk whatsoever, that's a loss. And then you also need to mitigate that risk by having people on your team who understand risk assessment, guys like yourself. But that's an honest answer. Even when I call the bank, I'm like, hey, what can go wrong here, guys, and then they'll tell me, or someone on my team or our broker, like like, I'm all about having people around me that can point out my flaws, because I have them like any other investor, I, you know, bright eyed, bushy tailed my want. So I hope that answers the question. And it's not, you know, may not be what everyone else looks at. But I'm always asking that same question like, like, if I don't take a risk, there's a major risk in itself. But if I do take this risk, what does that mean for me and my investors? And who could I get to point out the things that specialize in that, that I may not even consider? You know, even if it's cost, I gave it the insurance product on this things, arrange the roof about $800, you know, as opposed to, as opposed to you underwrote it, and budgeted around about four 450 That matters. And I'm like, Oh, why? Well, you know, paneled boxes need to be changed out, this needs to be done, like, like, all the things that most people just take a look at things that don't think about. But that's how I see risk, you know, take it, but understand the risk you're taking and why.