Investors always want to know what the odds of losing their capital will be. Investors want to know when they will begin making money after sending funds to participate in any investment offering. This is the development time risk. Three, Investors want to know how good the profit structure is, or more specifically, how much money will they make during the life of the investment? I would add a fourth and fifth concern which would be what tax write-offs are there, and finally, what liquidity is there going to be in the investment, or in other words…what’s the exit strategy, if any?
Risk is of primary concern to anyone who is expecting to make money, and the deciding of who with, and where to invest hard earned money are the key questions. Upside, downside, and everything else in between are all factors when an intelligent investor analyses any investment, and determines how much, or little to choose to invest. There are many types of risk…I would like to list some of them based on my own experience, considerable research done during the past 24 years, and based on some failures I’ve also had over the years.
There is a people...