Do Owner managed real estate companies have a high inherent risk ?
Do Owner managed real estate companies have a high inherent risk ? Owners provide bandwidth and long term commitment. Professional CEOs provide risk mitigation. Where does the balance lie? Can the same be achieved in Real Estate business ? = = = = = = = = = = = = = = = = = = = = = = = = Last week in Italy, the owner and CEO of a large listed Indian Real Estate Development company met with a major car accident. The video showed the high level of intensity of the accident. This incident has put a new thought in minds of some of the institutional investors who have invested in Real Estate Companies - Do owner managed real estate companies have a high inherent risk ? One might immediately counter - why limit this question only to real estate business ? The answer is simple…. more than 95% of the real estate companies are managed by the owners. Now, before we move forward, it would be important to understand the structural reason