Commercial Real Estate Pro Network

 J Darrin Gross If you're willing, I'd like to ask you, Ashley Garner, what is the BIGGEST RISK?   Ashley Garner I think the biggest risk is to be under capitalized and and ultimately, you know, a property can go up in value, or the the P and L can show a profit, but if you don't have enough cash flow to pay the bills or make the repairs that you need to make, or make the improvements you need to make, then you you're in a tight spot, and that puts everything at risk, and that's an avoidable risk to not be under capitalized. But the temptation is so great a lot of times to say, I'm going to just manage this myself and save that money, or I'm going to turn units out of operations. I'm going to use the money from operations to improve units. And then, unfortunately, then a water leak happens, or something happens, and you need to do 10 at once. Well, you don't have enough money to do 10 at once, and now you can't rent them, and you're in trouble and so, but if you've got a nice. Just reserve pile of cash, so to