Insightful Investor #37 - Jeff Krasnoff: Private Real Estate Investing
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Sep 10, 2024 Jeff Krasnoff, the Founder and CEO of Rialto Capital Management, shares insights from overseeing $21B in commercial real estate assets. He discusses the importance of risk management and diversification during market downturns, drawing on his experiences from the 2008 financial crisis. Jeff elaborates on the evolution of private real estate investing and the need for thorough market research amidst rising interest rates. He also highlights the shift toward direct lending in today’s dynamic market, offering strategies for navigating investment challenges.
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Career Start
- Jeff Krasnoff's career began in accounting, working with real estate clients in South Florida.
- He transitioned to the principal side, joining Lennar in 1986 and never looked back.
Cycles as Allies
- Distress investing disciplines apply across market cycles; focus on fixing broken assets.
- Real estate is cyclical; position yourself to profit in upturns and downturns.
Risk Mitigation
- Buy assets at a discount to provide a cushion and reduce risk.
- Diversify across property types, locations, and transactions to mitigate risk.