Show Notes

With real estate values soaring to new highs, it’s common to wonder how to incorporate the risk of a potential market correction while still participating in property appreciation over the long term.  Our guest today, Gabe Bodhi, is a Denver-based professional real estate investment manager who shares insights learned through previous market cycles.  Gabe discusses the various inefficiencies of the non-institutional real estate market and how value-add and mismanaged real estate can present attractive opportunities for savvy investors.

Key Points in This Episode

• Gabe's depth of experience in the financial markets and how he came to found Tekton Group
• How markets are cyclical and tend to overshoot on the way up and down
• Why he is a value investor and how he weaves value into his investment strategy
• The view that leverage is beta and not alpha, and how to employ leverage in real estate transactions
• Important areas for due diligence, and how physical due diligence can uncover potential red flags
• How he looks for value-added and mismanaged real estate as investment opportunities
• The inefficiencies that are prevalent in sub-institutional real estate investing, and the enhanced return opportunities
• The metrics he employs to value and transact real estate, including unlevered yield to total cost
• Compares real estate to public stocks, and how REITs and private real estate are similar and different
• Why Colorado is an attractive market and why he invests predominately in that market
• How to find the right investment manager and the risks to watch out for when selecting a private real estate manager