Stocks are now solidly in bear market territory and analysts are forecasting a recession.
Regardless of market factors over the rest of the year, we are comfortable operating — and even buying — in the current environment. Why?
- A large margin of safety was taken into account for our property acquisitions. We have always invested with downside outcomes at the forefront of our underwriting.
- We generate a majority of our revenue from established companies with strong financial wherewithal.
- We do not use excessive portfolio leverage. We’re currently leveraged at ~50% of value. Further, our property level loans are fixed rate and long dated, which means we do not have to refinance and face the current challenging credit conditions that this market presents.
- We are more optimistic than ever that we will be able to buy quality properties at discounted prices now that fear has set in amongst market participants.
Mr. Karsh is CEO and Co-Founder of Streitwise and Tryperion Holdings.
Prior to forming Streitwise, Mr. Karsh was an Acquisitions Analyst for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for underwriting, structuring and executing value-add and opportunistic transactions. He holds a Bachelor of Arts degree in Political Science from the University of Pennsylvania. Mr. Karsh is a member of ULI and is also a Real Estate & Construction member of the Jewish Federation of Greater Los Angeles.