BIGGEST RISK with Mark Khuri

Commercial Real Estate Pro Network

J Darrin Gross

I'd like to ask you, Mark Khuri, what is the BIGGEST RISK?

Mark Khuri

I'd say today J, a lot of people think economy, recession, downturn, asset values dropping, etc. All of that is top of mind, but it's not the biggest risk for us, the biggest risk has, for many years has been the same. And it remains today and its people. So we are a private equity firm. We are inherently trusting others to operate the assets that we're investing in. And so people risk number one for us, Jay, and one of the hardest to, to mitigate against because people by definition can be mysterious and difficult and hard to understand and complicated. And so a lot of that risk for us is reduced by working with people for a number of years, it takes a long time to get to know them, see if they're really good. And if the business plan wants you to go left, but the economy is telling you to go right what do you do? Do you have the right people that can steer the ship that can adjust in the middle of the the operation and continue to always have the investors best interest in mind? So for us, it's definitely people risk.