Identify repayment sources, such as different potential buyers for the exit and potential tenants during the hold period. Manage liabilities actively and strategically by negotiating structures with regards to loan covenants, maturity dates and pricing that give the client flexibility and that match the goals and strategy for the property.

Plan and understand multiple potential exit strategies before the purchase of the property. Have contingency plans in place for various scenarios; positive and negative to attempt to take advantage of beneficial opportunities and to seek to avoid being forced to sell a property at bad time which leads to the majority of large losses in real estate.

Be able to say “no” and walk away from a deal using a disciplined approach when buying or selling. Believe there will always be another deal to avoid getting tunnel vision and missing the big picture or other important facts.

Investment cycles occur and preparing for changes in the real estate cycle is imperative but we do not believe you can time cycles perfectly or know exactly when trends will turn because of the infinite number of factors at play that can happen or fail to materialize.

Real estate is generally illiquid and has high transaction costs associated with buying and selling. Real estate has historically performed well over long periods of time and the majority of loss occurs when it is sold in distressed situations and the owner does not have the ability to hold on to the property through a downturn in the real estate cycle.

Each client has their own unique circumstances with regards to required return, risk tolerance, ability to take risk, access to a capital along with many other factors. With so many factors it is often the case that what is a good deal for one client may not be a good deal for another client. Each deal must be analyzed within the context of the individual client involved with the property.