Mark Khuri’s real estate business survived the crash of 2008.
And the lessons he learned through that experience can help us take advantage of similar circumstances in the current market.
But how do you find good deals in tough times? Can you reduce risk without reducing expected returns?
Mark is Cofounder of SMK Capital Management, a family-owned investment firm that focuses on providing diversified offerings and attractive returns via income-producing commercial real estate.
With 17 years of real estate investing experience, Mark has executed over $1 billion in deals in a variety of asset classes.
On this episode of Financial Freedom with Real Estate Investing, Mark joins us to discuss how he leveraged networking to make it through the Great Recession.
Mark describes his transition from sponsor and operator of a SFH portfolio to raising capital for mobile home parks, self-storage and large multifamily deals.
Listen in for insight around Mark’s process for vetting operators and learn what you should be looking for in a good deal right now!
Key Takeaways
How Mark survived the 2008 real estate crash
- Networking with people who’d survived prior recessions
- Wrote checks to pay bills, wasn’t forced to sell anything
How Mark’s business has evolved since 2010
- Start as SFH and small multifamily sponsor and operator
- Transition to private equity company in 2016
What asset classes Mark’s fund invests in
- Mobile home parks, self-storage, apartments and ATMs
- Triple net industrial sale-leasebacks
What Mark likes about investing in mobile home parks
- Most affordable housing available
- Declining supply and rising demand
Mark’s strategy for investing in apartment communities
- Keep 50% affordable and 50% at market rate
- Eligible for 99-year property tax exemption
Mark’s process for vetting new operators
- Start with referrals from friends and colleagues
- Look at track record and ‘special sauce’
What inspired Mark’s transition from operator to capital raiser
- Supply of distressed assets diminishing
- Diversifying across asset classes reduces risk
What Mark is looking for in deals right now
- Margin between interest rate and going-in cap rate
- Positive cashflow in Year 1
- Business plan with clear path for growth
Connect with Mark Khuri
Email [email protected]
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Schedule a Call with Michael’s Team
Learn More About Deal Maker Virtual 2023
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
