CalculateRealEstateROI

Portfolio · Guide

Portfolio Risk Management

Concentration, leverage, vacancy, and operational risk — five risk factors to monitor.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Geographic concentration < 30%.
  • Asset class concentration < 50%.
  • Blended LTV < 70%.
  • Reserves 6+ months.
  • Insurance reviewed annually.

Core concepts

Concentration

Geo, asset, tenant.

Leverage

Blended LTV.

Liquidity

Reserves.

Step-by-step framework

  1. 1Quarterly risk review.
  2. 2Risk Center engagement.
  3. 3Reserves audited.

Common mistakes to avoid

  • No risk review.

Frequently asked questions

Risk Center use?

Quarterly.

Concentration threshold?

30%.

LTV threshold?

70%.

Reserves?

6 months minimum.

Action checklist

  • ☐Quarterly risk review.
  • ☐Risk Center.
  • ☐Reserves audited.
  • ☐Insurance reviewed.

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