Episode #133
Recession Proofing Your Real Estate Portfolio with Mark Khuri
Let Us Know What You Thought Of The Episode Real estate has always moved in cycles. Up, then flat, then down, then back up again. Anyone who's been doing this long enough has lived through at least one stretch like the one we're in right now. Rents are coming down in a lot of markets. Values have slipped. Inventory is sitting longer than it used to, and buyers have more leverage than they've had in years. If your cash flow has felt tighter this year than it did two years ago, you're not the only one. Here's what a stretch like this actually does. It doesn't create bad deals. It exposes them. A property that only worked because rents kept climbing every year, or because a refinance at a lower rate was baked into the plan, that property is having a rough time right now. A property that was underwritten with room for things to go wrong is still doing exactly what it was built to do. That's the difference I wanted to dig into on this episode. Mark Khuri is CEO and co-founder of SMK Capital Management, a private equity real estate firm that's put together more than 120 properties worth over $1.5 billion. He's built more than 70 partnerships with investors, and a lot of them keep coming back to invest with him again. In this episode we get into: How to underwrite a property so the numbers still hold up if rents drop or vacancy runs higher than planned Why self-storage, mobile home parks, multifamily, and industrial tend to hold up better than most asset classes when values are falling and inventory is high What real diversification actually looks like across asset class, market, and operating partner, not just owning a few properties in the same city and calling it spread out How Mark reads where we are in this part of the cycle, and what that's telling him about where to put capital right now What past downturns taught him about the kind of deals that survive versus the ones that fall apart, and how that shaped the way SMK underwrites every property today If your numbers have felt off this year and you're trying to figure out whether that's the market or something in how the deal was put together, this one's going to give you a lot to work with. Learn More About Our Trusted Partner - Ellements Financial Group Ellements Group offers real estate investors like you the peace of mind that comes from their insightful, full-team approach to financial coaching, holistic financial planning and managing your entire financial picture, not just your portfolio. Would you like to learn more? Visit: https://thesavvyinvestor.ca/ellements-financial-group Savvy Investor Links: Website: https://thesavvyinvestor.ca Instagram: https://www.instagram.com/savvy_investors YouTube: https://www.youtube.com/@thesavvyinvestor Join our Savvy Squad Community for 14 Days Absolutely FREE! https://thesavvyinvestor.ca/join Disclaimer: The views and advice expressed on this podcast are those of the participants and do not necessarily reflect the opinions or beliefs of the podcast host or affiliated parties. The content is for entertainment purposes only and should not be considered as professional financial, legal, or investment advice. Listeners are encouraged to conduct their own research and consult with qualified professionals before making any financial decisions. The podcast host and producers are not responsible for any actions taken based on the information provided.
