Mark Khuri We provide eligible investors with attractive returns and diversification through institutional quality commercial real estate. Through the creation of partnerships and syndications, we are able to achieve passive income and positive cash flow from carefully chosen real estate investments. We place a strong emphasis on risk mitigation and helping our clients create a truly diversified investment portfolio. We are so sure of our strategy and techniques that we often invest side by side with our clients, putting our own skin in the game.
At SMK our clients come FIRST, and we structure our investments this way. SMK only profits after our investors profit. This structure creates long term trust and provides the best outcome for our clients. We target specific asset classes including Self-Storage Facilities and Mobile Home Parks which have historically performed well in varying market cycles.
Within these asset classes, our focus is on mismanaged, distressed and under-performing value-add investments where we reposition the property by increasing income and reducing expenses, thus increasing the asset value without relying on speculative market appreciation.
As a California real estate broker and a real estate investor since 2005 I’ve been involved in sourcing, underwriting, acquiring, raising capital, rehabilitating, managing and selling both residential and commercial investments throughout multiple markets in the US. I have analyzed hundreds of investment opportunities over the years and have successfully bought, renovated, sold and invested in over 100 properties.
Episode Highlights Here:
Mark
Purpose of that person was to weather a storm, right? Keep doing well as cash flowing, providing investor distributions and retaining asset value.
Pierce
What’s the number one secret to recession? Recession resistant assets?
Mark
Number one, maybe I’ll give you a couple thoughts here. So what does it mean to be recession resistant? Number one, I’ll start with that. To us. Looking back the last several years, you know, 2018, we kind of thought that at that time, there were a lot of indicators in the marketplace, that there could be a market correction coming soon. And we wanted to best position capital for a downturn for a recession. And so we went out and created a fund that invested in mobile home parks, self storage, and Class B workforce housing in growth markets, put that together, and closed the fund to new capital in 2019. The purpose of that person was to weather a storm, right, keep doing well as cash flowing, providing investor distributions and retaining asset value. And so we’ve done that quite well. We obviously have seen some bumps along the way since we closed that fund in 2020, COVID. We stopped investing entirely for seven months, just analyzing the markets, trying to determine if there is going to be distress, is there going to be you know, tenants inability to stay in pay, occupancy dropping, etc supply increasing, we didn’t see that we kind of saw the opposite. Lots of demand, high demand from residents, users of the assets, and then also from other equity groups who are selling tea, right. So you want to always look at your exit strategy. And we found that the number of buyers for these assets was increasing pretty quickly by about q3 2020, so we decided to continue what we were doing as far as investment strategy and thesis. But we added kind of shorter term deals Pearson to our criteria, two to three year holds. We didn’t do that prior to COVID. That’s the one main shift that we adjusted after seeing a lot of tailwinds that were created through 2020 or so: rapid rent growth, rapid cap rate compression. And so we prior to that, we really only focusing on five to 10 year holds again, really trying to weather a storm, fast forward to q1 of 22 We stopped and paused all shorter term deals again moved back towards recession resistance very much focusing on long term fixed rate debt, conservative loan to cost, yield on cost, looking at all these metrics, stabilized assets that have a value add play, and really more five to 10 year holds again. So that’s a bit of our evolution over the last several years and how we focus a bit more on recession resistance.
Pierce
Yeah, so something I want to bring up you you wrote a book navigating passive real estate investments in post COVID era and you kind of mentioned how you shifted during the pandemic right from a long term, you know, buy and hold value, add stabilized assets to a really quick, almost like a flip in some, you know, sense and then kind of move back to a longer term. So this is gonna sound dumb, maybe but it is like if you guys can get all the copy of the book by going to sMk cap.com, forward slash five steps, all one word. Number five, five steps. You got to grab a free copy of that book. So I highly recommend going out and grabbing that
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About Mark Khuri
Mr. Khuri brings over 17 years of real estate investing experience to the organization. His career started in 2005 when he began investing in residential real estate in California and Florida. Throughout his career Mark has been involved in sourcing, underwriting, acquiring, raising capital, rehabilitating, managing and selling both residential and commercial investments throughout multiple markets in the US.
Mr. Khuri has analyzed thousands of investment opportunities and has successfully bought, renovated, sold and invested in over 120 properties with a combined value over $1 billion and created and managed over 65 real estate partnerships with investors.
Over the last decade, Mr. Khuri and affiliates of SMK have invested in over 45 commercial real estate opportunities across numerous asset classes including mobile home parks, self-storage facilities, multi-family communities, retail shopping centers, oil wells, student housing, vacant land, short-term debt and ATM’s.
Prior to founding SMK Capital Management, Mr. Khuri was the Vice President of Sales & Operations with a private retail distribution firm and Mr. Khuri worked as a financial analyst with a fortune 500 Company performing budgeting, planning and internal audit roles. Mr. Khuri holds a B.S. in Finance from Bentley University in Waltham, MA, was a CA licensed RE Broker and taught Real Estate Investing Principles and Best Practices at Central Oregon Community College. In his spare time Mr. Khuri enjoys spending time outdoors with his wife and 2 children.
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