Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Why Real Estate Development is So Risky

4 Mar 2025 · 1 min

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A short excerpt from a YouTube conversation (host Richard Canfield and a guest) about why real estate development is risky. The guest emphasizes numerous risk factors, arguing that developers must be well-capitalized — "deep pockets," strong reserves, and good credit — and must have the right mindset to succeed because development is complex and costly.

Chapters

When we think about risks that real estate investors are dealing with, what are some of the things that you see there and how does that relate to some of your own experience?
There are so many risk factors with development. Developers are the partners in building our cities and building our towns and putting up the housing that we need. And we need successful developers. We need developers with deep pockets to build. Because it is so risky, it is so challenging. You can't have people do it on the cheap. You need to be well healed and have good reserves and good credit in order to be in that business. Because it's not simple, it's not easy. You got to have the right mindset to be successful at it.