Podcast: The Real Estate Risk Report
Episode Number: 66
Episode Title: The Best Deal is Sometimes the One You Don’t Do
Host: Lance Pederson, Founder & Managing Partner, Verivest
Guests: Ken Gee, Founder & Managing Member, KRI Partners
The Best Deal is Sometimes the One You Don’t Do
KRI’s Ken Gee sits down with Lance Pederson of The Real Estate Risk Report to discuss all things real estate risk related. From the initial underwriting to the execution of the business plan, they cover it all. Listen in as Ken and Lance explain how exactly KRI does it.
In this episode they cover:
- Initial underwriting – KRI uses a bottom-up approach to underwriting their deals. They may initially use generalizations and averages, but before taking a deal seriously, they always perform a detailed bottom-up underwriting model.
- Takeover plan – Ken talks about KRI’s 90 day, three phase takeover plan. Each phase is designed to meet certain goals, and, within 90 days, the property has definitely adopted the KRI way of doing business.
- Occupancy – KRI is always focused on occupancy. No matter what! Even during renovation periods. There is no reason to let occupancy slip below 90%. To do so usually leaves a lot of operating cash flow on the table.
- People – Finally, and probably most importantly, KRI is always focused on the people they are affecting. So many times, investment firms forget that they are dealing with someone’s home. They deserve the utmost respect and KRI always treats them fairly.
Learn more and listen in to the conversation here.