What is your ‘risk appetite’?
📰 My #propertyinvestornews article this month co-written with the wonderful @shola adeniran 🏗
Perhaps a better question is what is your appetite for LOSING? 💸😣
Because that's what risk really is...How much are you willing to LOSE if this doesn't work out?
Definition of risk: 'the possibility of loss or injury; peril; someone or something that creates or suggests a hazard; the chance of loss or the perils to the subject matter of an insurance contract, also, the degree of probability of such loss.'
⚡️Loss. Peril. Hazard. Loss again. ⚡️
Nothing about gaining anything here! Adrenaline maybe? 🧻
Murderous looks from your spouse?! 👀🕯⛏
When we want something so much, we can convince ourselves that our appetite for risk (LOSS) is greater than it is.
So when those lenders come knocking for a PG (personal guarantee) and ask what skin-in-the-game we have, are we really willing to put the family home – likely the biggest asset - on the line?
Would we be willing to (🚫 not risk it 🚫) LOSE it?
How do you keep it real when it comes to risk?