Commercial Real Estate Pro Network

Darrin:  I'd like to ask you on Angad Guglani, what is the BIGGEST RISK? 

Angad:So I had a few ideas on this, like we talked about Darrin, but you probably gave me a really good story. You did give me a very good real life story and somewhat shaped my thinking. And I would say the biggest risk being very concentrated in one market and one to expand will be concentrated in the other markets. Right? Well, we'll have heavy concentration in a handful of markets. Is something systemic like a major flood or ice storm like that was the example you gave. And something like that where, you know, I don't frankly, I don't read the policies as well as I should. We have a master insurance policy, and I'm sure there's some sort of cataclysmic event that might happen that probably voids the policies. And if that were to happen, that would be very dangerous. Number one. Number two, or, you know, like you said, if you have a major, you know, act of God event and your policy doesn't pay out and you have fixed expenses like mortgage and taxes and stuff and you fall behind on those, that's another big expense. Big risk. So, yeah, basically anything that comes of concentration, I would say is this is the BIGGEST RISK.