BIGGEST RISK with Niv Davidovich

J Darrin Gross I'd like to ask you. Niv Davidovich, what is the BIGGEST RISK?   Niv Davidovich Risk in being a real estate owner? J Darrin Gross However you wanted to.  It's up to you to find what you consider to be the biggest risk.   Niv Davidovich I guess I'm I'm somewhat tainted, because the things that I deal with are either the expensive evictions or the expensive or difficult habitability claims. So to me, I'm always going to see that as the potential risk. I can't really necessarily speak to market conditions, you know, because I think the people who bought the offices in 2019 they never thought that their class, a landmark buildings are going to crater in price by two thirds. But obviously, having a global, you know, pandemic, it's just not something you, you know, put on your pro forma. So that's probably the biggest risk, but it's probably going to happen the least amount of times in terms of regular, regular risk, it can be these lawsuits, because it's very easy for the tenants to find tenant attorneys who are going to file them on contingency. And there's a proliferation, proliferation of these types of attorneys happening in California. And I'll explain why personal injury, even though it is viewed as, Oh, those are the ambulance chasers and sort of like the low class attorneys, they're making way more money than a lot of these, even white shoe lawyers. So the the barrier to entry to get into personal injury is so high now because they're spending so much money on advertising and marketing. I'm talking about some of the big boys are spending millions of dollars, millions, plural, of dollars, every month, not year month, and that's because there's just a lot of money there. But in order to keep up with them, you need to spend that much money. If you can't, well, I'll move on to a different area where I can also make similar money. So they moved into employment Well, now there's people spending all of that money in employment law, also hundreds of 1000s, if not millions, of dollars every single month to get these employment claims. Because in California, get a good employment claim, you can really hit it big. So that barrier to entry became very big, and so they moved on to the next thing, which is the tenant habitability claims, where you can also potentially hit it big. Now it's not as big as the PI and it's not really as big as the employment, but lower barrier of entry as well. And so all these new lawyers who are coming out of law school every year that are more entrepreneurial and business minded, they need an area to get into that they can just open their shingle and just start doing it. And happens to be that habitability is something they can do. So that's happening a lot more. And if you don't have the proper insurance, you. Have one claim, it can kill you. www.Davidovichlaw.com E: [email protected] Ph: 818-661-2420