For many real estate investors such as Christopher Linkas, diversification of risks is a critical investment decision. However, not all investors begin their investment journey through a diversified portfolio. Some investors, buoyed by the familiarity of the investment vehicle and personal experiences as homeowners, usually venture into single-family house ownership. Despite its superficial attractiveness, such an investment vehicle comes with numerous disadvantages that make them unattractive in the long run. Due to the little cash that single-family houses generate, investors are constantly faced with the problem of inadequate cash flows. The lack of investment diversification means that investors are more often faced with excess risks, high maintenance fees and inability to harness the benefits of economies of scale. Single-family houses also come with binary occupancy and overreliance on the market to determine property value challenges.
To overcome such challenges successful real estate investors usually opt for the passive commercial real estate as an investment vehicle. This is because they come with reduced risks due to diversification and non-reliance on the market to determine property value. Such investors are exposed to limited losses and have a chance to co-invest with seasoned investors such as Christopher Linkas through various avenues including starting a real estate company or limited partnership. Despite the advantages associated with single-family rentals ownership, they offer the much-needed hands-on experience that is required to be a successful passive commercial real estate investor.
Christopher Linkas is a vastly experienced commercial real estate investor who boasts of a huge wealth of investment knowledge gathered through professional experiences. His sharp and excellent investment prowess began in 1991 when he joined a repackaged loans consulting firm after graduating from Bowdoin College. He later moved a real estate investment firm specializing in credits, debt servicing, and investment. He rose through company’s ranks to head its commercial real estate and debt divisions.
Christopher Linkas later moved to Europe where he heads a group of twenty investors who specialize in investing in opportunistic investments in the United Kingdom and Europe. Drawing from his wealth of knowledge, Linkas opines that starting to invest early is the key to a comfortable life as a retiree. This is because it allows individuals to benefit from compound interest and take early risks with ample time to recover in case of losses.