Risk Management

I run stress tests on real estate portfolios as a habit — not because I expect the worst, but because clarity in bad times makes good decisions easier. Below I walk you through a practical, repeatable playbook for answering a stark question: what happens to your portfolio if 30% of income-producing real estate turns vacant? I'll use plain metrics, a simple worked example, and concrete actions you can take today to strengthen cashflow...

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I often get asked by small multifamily owners: How many months of rent reserves should I keep, and where should I park that cash? It’s one of the most practical risk-management questions in real estate, and the short answer is: it depends. But that’s not very satisfying, so below I walk through the factors I use to set reserve levels, present pragmatic reserve targets for different risk profiles, and explain where to hold the money so it’s...

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I’ve spent years watching REITs move from steady dividend machines to distressed assets — and often the warning signs were sitting in the financials long before the market’s price action screamed “sell.” If you want to spot trouble early, you need to look past the headline dividend yield and dig into a handful of ratios and metrics that reveal credit strain, cash-flow weakness, and operational stress. Below I walk through the...

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