Darrin: [00:00:08] What is the BIGGEST RISK? [00:00:09][1.3]
Bob: [00:00:11] That's a good question Darrin and certainly one that we should consider you're in that business. That having been in real estate forever you want to minimize that risk especially as you get older and have less time to recover from exposure to a risk that actually comes to pass. It is after all real estate. And the value of real estate goes up and down. So I would see the BIGGEST RISK is investing in a "C" property in a bad market. Recently I saw a sponsor with a large apartment complex in one of the oil patch towns, it was in the fracking business. I wouldn't invest, or encourage an investor to invest there because what if fracking goes away. What if we decide we don't want to frack anymore? Then that apartment house doesn't have a high value if fracking were to go away. So buying that apartment house in Florida or California or someplace Dallas proper would be completely different. I think avoiding prop properties in markets that are you know have exposure to down markets. And I think investing with new sponsors that don't have a track record someone that they may be great they may be well intentioned but don't have the wherewithal to Inland or Pascoe Cantor that if there is a problem they they can solve it. Where a new sponsor perhaps couldn't solve it. So the biggest risk would be going into bad market or weaker markets or with a sponsor that doesn't have the ability or track record to solve the problem.