Real Estate Risk Management Techniques

You've seen the paint peeling. Here's what you should know. Have you ever noticed some portions of your house have damp patches creeping up the walls, and peeling the paint? Have you observed that it gives your room this damp and musty smell? The culprit? 📌Rising damp. It is a silent troublemaker in many buildings. Rising damp occurs when ground water is sucked up into walls through capillary action (remember this from science class?) Well think of it like a sponge soaking up water, but this time, it's your building. This water also contains salts that travel up through the wall. 📍Other signs •> Visible stains up to the height the water has reached •> A white fluffy deposit left on the wall surface •> Flaky plasterwork •> Actually wet blockwork 📍What causes it? •> Absence or damage to a damp-proof course (DPC) (more about this in another post). •> Poor drainage around the building. •> High water tables in the soil. 📍Why should you care? •> It weakens your walls. •> It encourages mold growth, which is not good for your health. •> It reduces the property's value. 📍How can you prevent it? For those still building: •> Ensure your building has a proper damp proof course. •> Opt for materials that resist water penetration during construction.These days there are chemicals that are added to make them more water resistant. For those living in the house already: •> Fix drainage issues around your property. Remember maintenance is key. If you suspect rising damp, get a professional to properly diagnose it so that the treatment can be effective. Protect your building and your investment! ➡️Have you encountered rising damp before? Share your thoughts/experiences in the comments. Learned something? Hit ♻️ Repost so others can learn too. #architect #projectmanager #delthecurious #archfocus #architecture

As damp surveyors, our sole job is accurately identifying building moisture issues. It's what we're paid for, and it's what we love doing! However, one of the most common challenges is dealing with false positive readings from damp meters, which can lead to incorrect conclusions. The problem with damp meters is that they measure electrical resistance in materials. While they’re great for detecting the presence of moisture, they are far from foolproof. A reading might indicate high moisture levels when, in fact, other factors are at play. Salts in the Walls: Buildings with a history of rising damp often have salts (hygroscopic materials) that attract moisture from the air, giving false high readings. Surface Condensation: Surface dampness from humidity may show up as a positive reading but doesn't always indicate a deeper problem. And obviously, electrical conductivity of materials: Some building materials can show high conductivity, even when dry, like the photo I took earlier today following a long conversation with my client. We all know this metal pipe isn't saturated even though the meter says differently. As surveyors, we all share one common tool, and out of all the fancy gadgets we have in our bags, these are the most important: our eyes!! Relying solely on a damp meter can lead to misdiagnosis, and, let's be honest, often does. This could result in unnecessary and costly remedial work, wasted resources, unhappy clients and, as I've seen lately, house sales falling through. More importantly, the root cause of the moisture problem may remain unsolved as the real issue is overlooked. A comprehensive damp survey requires more than just meter readings. Visual Inspections are priceless to look for telltale signs like discolouration, flaking paint, or mould growth. We must consider using other tools, such as thermal imaging or salt analysis kits and hygrometers, and looking beneath floors for a more accurate assessment. We also need to understand the environment. When interpreting readings, consider factors like the age of the building, ventilation, and local weather patterns. While damp meters are useful tools, they should be part of a broader diagnostic approach. Only through thorough investigation can you ensure that you are providing your clients with the most accurate and actionable advice. www.neil-marsden.co.uk #DampSurveying #BuildingMaintenance #Surveyors #MoistureControl #PropertyInspection #FalsePositives #BuildingSurveying

Risk less..Win Big That’s my negotiation strategy… Strategies to Minimize Risk in Business & Real Estate Deals Due Diligence: Performing exhaustive due diligence is non-negotiable. For real estate, this means inspecting the property’s condition, reviewing zoning laws, and examining title history. For business acquisitions, you’ll want to dig deep into financial records, liabilities, contracts, and client retention rates. The more you know, the less you risk. Contingency Clauses: In both business and real estate transactions, including contingency clauses tallow you to back out of the deal if certain conditions aren’t met—like undisclosed liabilities, financing issues, or failing inspection. It’s your safety net. Escrow Accounts: In business or real estate deals, using escrow accounts can ensure that funds are only released once all contractual conditions are satisfied. This keeps both parties accountable and reduces financial risk. Leverage Negotiation: Negotiate favorable terms, such as asking for seller financing or favorable lease terms in real estate. With businesses, you may want to negotiate for an earn-out clause, which ties the purchase price to the future performance of the business. Insurance and Warranties: In both fields, securing insurance policies or warranties can provide protection against unexpected damages or business losses that may arise post-purchase. For real estate, title insurance; for businesses, consider warranties regarding existing liabilities. Legal Protections: Ensure strong legal protections are in place. For real estate, this includes ensuring proper zoning and environmental assessments. For businesses, consider non-compete clauses and intellectual property protection to minimize the risk of losing clients or valuable assets post-purchase. These strategies not only help minimize risks but also strengthen your position in the negotiation. I am a NY attorney,strategist, broker who has been negotiating real estate and business deals for over 25 years. Sharing my insights.

In India, buying agricultural land can seem like a lucrative investment but one WRONG move could land you in legal trouble. From disputed titles to government notifications, the risks are real. Here are 5 Tips to Avoid Legal Issues When Buying Agricultural Land in India: — 1️⃣ Verify Ownership Documents 👉🏻 Ensure the seller has a clear and marketable title to the land. 👉🏻 In local revenue office: Check the past 30 years of ownership records to confirm no disputes or encumbrances exist. Pro tip: Insist on original documents and cross-check with legal experts. 2️⃣ Check Land Use Restrictions 👉🏻 Agricultural land often has restrictions on use. 👉🏻 Confirm that the land is classified for agricultural purposes and whether you, as a buyer, meet the eligibility criteria. Each state in India has its own rules—know them! 3️⃣ Review Past Transactions 👉🏻 Scrutinize the sale deeds of previous owners. 👉🏻 This ensures no hidden legal claims, mortgages, or loans are attached to the land. 🚩 Red flag: Multiple ownership changes in a short period may indicate potential issues. 4️⃣ Ensure Land is Not Government-Notified 👉🏻 Many agricultural lands are notified by the government for future projects or are under protected zones. 👉🏻 Always get a legal expert to conduct a search report to confirm there’s no government claim. 5️⃣ Register the Sale Deed Properly 👉🏻 Once all checks are complete, ensure the sale deed is registered at the local sub-registrar’s office. 👉🏻 Registration makes the purchase legally binding and protects you from future disputes. That's all! — Save this post to refer back when you’re ready to buy land!

🔍 Discover the Science Behind Damp Diagnosis!🔎 In this insightful video, our seasoned Building Surveyor with over 20 years of experience , takes you through the meticulous process of moisture profiling by conducting skirting board readings to diagnose damp issues in domestic dwellings. Moisture Profiling is an extremely useful method of aiding diagnosis of where damp is coming from and why. Each damp manifestation leaves evidence, which we can bring together to ascertain, source and direction of moisture travel. In this Video, by taking readings at the top of the skirting board and at bottom and comparing the results we can narrow causes down. For example, in this instance, moisture levels were higher at the top lip of the skirting board, which drops at the lower face level. This tells us that water is likley running down the wall and gathering on the top of the timber, which tends to occur with condensation related issues when water condensates on the wall and runs down. 🏠 About RBBA Ltd: With a focus on professionalism and scientific accuracy, RBBA Ltd has been the trusted choice for damp surveys for over a decade. Our commitment to excellence and customer satisfaction sets us apart in the industry. 📈 Join Us on Our Journey: Follow along as we share valuable insights and practical tips on managing damp conditions in your property. Don't forget to like, comment, and share this video with anyone who might benefit from our expertise! #DampDiagnosis #BuildingSurveyor #RBBA #NorthernIreland #MoistureReadings #HomeSafety #PropertyCare #ThermalImaging #DampSurvey

Brookfield’s $16B Distressed Real Estate Fund: What It Signals for the Rest of Us Brookfield is wrapping up its largest real estate fund ever—$16B raised, focused squarely on distressed commercial real estate. That’s no small feat in today’s challenging capital-raising environment. What does this tell us? ✔️ Major institutional players are positioning for value by acquiring assets at steep discounts—often 20–40% below peak pricing. These values can be found in secondary and tertiary markets, too. ✔️ Distress is reality. CRE loan delinquencies have reached a 10-year high at 1.57%, according to FRED. Sounds ominous, but let's not freak out; comparatively, in 2010 during the Great Recession, delinquencies peaked at 10.2%. The sky is NOT falling. ✔️ Many distressed deals aren’t broadly marketed—most happen privately through lender relationships and behind-the-scenes negotiations. We need to know who's holding these distressed loans and how they want to move them off their books. While most individual and middle-market investors don’t have access to Brookfield-scale funds, the underlying strategy is still relevant: ☑️ Pay attention to distress indicators (lender behavior, loan sales, CMBS delinquencies). Ask your banker, broker, or advisor for activity in your preferred region or asset type. ☑️ Be patient and selective—some of the best opportunities arise when others are forced to sell. Have dry powder available to take action if a compelling opportunity presents itself. REMEMBER: DISTRESSED REAL ESTATE TYPICALLY HAS MAJOR PROBLEMS THAT NEED TO BE SOLVED TO INCREASE VALUE. THERE'S A GOOD REASON THEY ARE DISTRESSED. DISTRESSED REAL ESTATE INVESTING IS A SPECIALTY IN ITSELF. ☑️ Align with advisors, investment managers or operators who specialize in navigating special situations. For most of us, investing through a major fund like Brookfield makes sense. For some of us, we prefer to be sharpshooters and invest directly with local real estate firms. This phase of the cycle may play out over several years. I’ll continue sharing insights on how investors outside the mega-fund world can still participate in this theme—intelligently and selectively. Do you think distressed loan volume will increase or decrease by YE '25? I welcome your perspective and questions.

This little photo sequence explains what I think of as the three stages of investigating damp as part of a Home Survey. It also shows why different meters might be useful at different stages. Stage 1 Spotting Damp The staining and black mould on the floor are a good clue that there might be a problem. A competent Surveyor should definately spot this and chances are a homebuyer will see exactly the same thing and assume a damp problem as well. You could argue that at this stage I could just tick the box for further investigations and move. No chance of a claim but also no chance of a happy client because the survey they have paid for has not added any value on this issue. Stage 2 Detecting damp Using a Protimeter Survey Master I have confirmed there may be some excess moisture to the floor and also it has spread to the wall. The meter is reading at 999 on scan mode for both the floor and wall and 99 on the pins applied to the plaster. There is no visible damage to the wall so the client would not have known it was also effected, I have added some value. Chances are I will have a reasonably satisfied client even though I am still calling for further investigations. Stage 3 Investigating Damp Using the slightly more sophisticated Tramex Meters MEX5 I have been able to better judge the pattern of the damp as well as determine that whilst the surface of the plaster may be damp, there does not appear to be much going on behind that. This tells me the plaster is likely to not have been cut off above the ground level so some moisture is tracking up from the floor. I know now the main problem is the floor, the wall is just collateral damage. The meter indicates a moderately high level of damp to the floor in masonry mode, no damp to the wall in the same mode and moderately high to the wall on plaster/tile mode. I might not be able to fully diagnose the initial cause of the problem but I have been able to investigate enough to give the problem some context. Whilst I will still have to recommend further investigations I can also provide a lot more detail when I do. On top of that I can give my client more of a guide as to how extensive the repair works might be and they can make a more informed choice about what they want to do. Pretty much all Surveyors can do stage 1, most manage stage 2 but in my opinion not enough get as far as stage 3 and that is just one of the many reasons still not enough home buyers actually chose to have a survey.

The 5-Pillar Framework that earned me "Mr. Turnaround" Several years ago, I walked into what seemed impossible: - $5B urban development in distress - Late, over-budget, low occupancy - Frustrated shareholders - Demoralized team - Multiple leadership changes How we transformed distress into success in under 2 years: 1. FIRST, UNDERSTAND I asked questions about history (no judgment). Listened. Researched. Dug deep. This gave me a crucial root cause analysis. I then aligned the board with our findings. Before you start your transformation journey, spend time to understand what went on, why and how it took place. 2. FIND QUICK WINS I wanted to create a splash. Change the overall sentiment. I took calculated risks. - Seasonal events that actually made money - Pop-ups with emerging brands - Small victories that built momentum Tactics payoff maybe low but it's quick. Capitalize on compounding. 3. COMPETE AGGRESSIVELY I looked into products, services, key messages, and look and feel. - Re-priced our inventory to go head-to-head with competitors - Removed risks that prevented partnerships - Offered relevant incentives to close deals A downfall/downtime can be a great opportunity. Change your lense. 4. TACKLE OBSTACLES SYSTEMATICALLY Commercial, Physical, Regulatory, Technical barriers - one by one Examined every touch point. Worked on Positioning and Communication. If there's a will, there's a way. Make it your cause. 5. FINANCIAL RESTRUCTURING Asset disposal options presented to the board 5-year business plan with surgical reforms History if full of turnaround stories. Instill discipline and adaptability. Engage your team. The results were almost immediate: - Net Operating Income: +40% increase in one year - Revenue growth: +20% YoY - Perception shifted dramatically - Footfall increased significantly - Tenancy deals flow daily What made the difference wasn't the budget - it was systematic execution and a committed team. Today, that same destination commands market premiums and maintains exceptional occupancy rates. Agree? Repost so others can build on this framework. #Leadership #Turnaround #CEO #BusinessTransformation #RealEstate #Strategy

The failed Charlie Croker playbook is too often employed by big commercial real estate borrowers. But in debt restructuring, bigger isn’t smarter. Size doesn’t equal sophistication — even “expert” distress investors trip over themselves. I’ve seen it firsthand: they become their own worst enemy. Here’s the reality. Having a large footprint and a polished finance team doesn’t mean you know how to restructure debt. Arranging a loan and working one out are two entirely different skill sets. Even the best restructuring attorneys can’t create the underlying business strategy that defines your negotiation box. That’s on the business side — and that’s where things often fall apart. The big institutions – well, they often suffer from hubris and palace intrigue. They don’t really understand how to negotiate with lenders - especially on CMBS - and they can’t admit that to their bosses or shareholders. They think their reputation as operators should carry the day, while the lender’s asset manager (who actually holds the leverage) is supposed to follow their lead. That’s not a winning playbook. Instead, they often overestimate their in-house capabilities, ignore the counterintuitive strategies that workouts demand, and hire expensive counsel to fight losing battles. Meanwhile, their bureaucracies slow everything down. C-suites sit around tables debating issues they don’t fully understand, blaming lender “intransigence,” while missing the obvious: their own portfolio holds the real value. With the right approach, those “problem” assets could become some of their best deals - quietly restructured and repositioned, off-market, with no competition. So, what should an executive team actually keep in mind? Three things: 1️⃣ Embrace the uncertainty. Lenders — especially in CMBS with REMIC restrictions — won’t tell you what they’d accept. You have to make a proposal. And they often can’t address issues too far ahead of default, so don’t expect them to. 2️⃣ Your reputation only goes so far. Yes, you may own great assets and be respected. But you also signed off on the failing one. If you don’t have a clear plan to fix it, why should the lender assume you can now? Without a plan, they might assume someone else can do better. 3️⃣ Nail the first impression. Once lenders sniff distress, they call around and form outside opinions fast. If you don’t frame the narrative with your business plan upfront, you’ll end up reacting to misconceptions and playing defense. Give them the story early, show why your plan makes sense, and help them get comfortable with it.

Whenever I’m called in for an inspection, one of the most common issues I encounter is paint peeling off the walls up to a certain height from the floor. This is often a sign of rising damp, penetration damp, or condensation, which can be a cause for concern. This issue isn’t limited to older buildings—it’s also seen in newer structures. It typically appears on ground floor walls or even on upper floor walls, particularly behind wet rooms. 1. Rising Dampness Cause: Rising damp occurs when groundwater moves up through porous materials like brick or plaster, often due to an ineffective or absent damp-proof course (DPC). As moisture rises, it reaches the paint layer, causing it to lift off the wall surface. Symptoms: Visible damp patches, peeling paint, crumbling plaster, and sometimes, a musty smell. Remedy: Installation of a modern damp-proof course, injection treatments, or tanking the affected walls to prevent moisture ingress. 2. Penetration Dampness Cause: This type of dampness is caused by water seeping through walls due to external factors like leaking pipes, cracked windows, damaged roof tiles, or poor masonry. Symptoms: Damp patches on internal walls, discolored wallpaper, or mold growth. Remedy: Fixing the source of the water ingress, such as repairing roof leaks, fixing plumbing issues, sealing cracks in external walls, etc 3. Condensation Cause: Occurs when warm, moist air comes into contact with cold surfaces (e.g., windows or walls), causing water vapor to condense and form droplets. Symptoms: Damp patches, mold growth, and musty odors, often in colder rooms or poorly ventilated areas. Remedy: Improving ventilation (e.g., exhaust fans, opening windows), ensuring sufficient gaps between the walls and furniture/wardrobes, shelves, increasing insulation, and using dehumidifiers to reduce moisture levels in the air. Proactive Solutions Regular building maintenance and inspections. Using moisture-resistant materials for finishes and insulation. Installing proper ventilation systems to keep humidity levels in check. Addressing these types of dampness early can save you from costly repairs and health issues. If you notice any signs of dampness, it’s essential to act quickly and seek professional advice! #BuildingMaintenance #Dampness #Condensation #RisingDamp #PenetrationDamp #PropertyManagement #waterproofing #Interiors #Construction