How Does Trion Mitigate Risk?

By: Max Sharkansky, Managing Partner
  • Max Sharkansky: There's only so much we can do to hedge our risk. We do as much as we can. For example, with interest rates and debt, we'll take less debt in this marketplace. We're also trying to borrow as much fixed-rate debt as possible.
  • Max Sharkansky: If we're borrowing floating-rate debt, then we're buying interest-rate caps. We'll actually go out into the swaps market, and we'll buy an interest-rate cap that will cap how much their rate can go up, while we have a loan.
  • Mitch Paskover: We're able to get loans that are 30 years in term, even though they're fixed for five-, seven, or 10-year periods. After the fixed-rate period expires. the loan automatically goes to a floating-rate loan.
  • Mitch Paskover: Being in multi-family, we learned that we want to go long-term financing; that if something does happen, our loans aren't due. We'd like to leave enough reserves for liquidity reasons that if something does happen, we do have money left aside to help us stay afloat.

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Max Sharkansky, Managing Partner
Posted By Max Sharkansky, Managing Partner

Max is co-founder of Trion Properties and oversees all aspects of acquisition, disposition, and property analysis for the company. Since founding Trion he has led the acquisition, renovation and disposition of over $300,000,000 in mismanaged and distressed assets, primarily in multifamily, yielding an average IRR in excess of 30%.

Max's driving objectives in investing are to deliver outsized returns without taking outsized risks and the words he lives by are that "real estate doesn't kill people, debt does."