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Risk Analysis

  • G. Jason Goddard
  • Bill Marcum
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

In this chapter, the various forms of risk in real estate investment will be described. These forms of risk will be outlined in light of the recent financial crisis. The chapter discussion will elucidate various statistical analyses that the individual investor can perform in quantifying the level of risk in a particular property. As a component of risk analysis, the concept of leverage will be discussed. The internal rate of return (IRR) will be revisited in the context of risk determination. The chapter will conclude with discussion of risk measurement from the perspective of the lender.

Keywords

Interest Rate Real Estate Cash Flow Federal Emergency Management Agency Liquidity Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  • G. Jason Goddard
    • 1
  • Bill Marcum
    • 2
  1. 1.Investor Real EstateWells FargoWinston-SalemUSA
  2. 2.Wake Forest UniversityWinston-SalemUSA

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