These “Durable” Commercial Real Estate Investments Will Pay You for Decades | Ep. 1006

What separates a piece of commercial real estate that doesn’t survive from one that endures for decades—and through multiple market cycles? It’s a question Ed Pitoniak, founder and CEO of VICI Properties, has spent the last several years working to answer. Today, Ed leads one of the nation’s largest owners of experiential commercial real estate. But he took an unconventional path to get there, starting at a ski publication before moving into hospitality and, eventually, real estate. Along the way, he forged the skills and perspective needed to navigate some of the industry’s toughest challenges, from the rising costs of capital to tenant concentration risk. Ed shares how he underwrites real estate deals to account for today’s high-interest-rate environment and the two-part strategy he’s using to slowly but surely diversify VICI’s tenant base. He also breaks down how his team evaluates not only the properties they acquire but also the triple-net lease tenants occupying them after closing. Plus, Ed shares the thesis behind a real estate category he believes will be one of the more durable asset classes over the next several decades. Insights from today’s episode: The real “durability test” for any piece of commercial real estate How Ed weighs risk and reward when underwriting new opportunities The biggest challenges when working with triple-net lease tenants The two-part strategy for mitigating tenant concentration risk How to vet operator and asset quality before buying a property Criteria for determining if a real estate category has real staying power — VICI Properties Connect with Ed on LinkedIn Recommended Resources: If you’re a high-net-worth investor with capital to deploy in the next 12 months and you want to build passive income and wealth with a trusted partner, click here for opportunities to invest in real estate projects alongside Kevin and his team.  Accredited Investors, you’re invited to Join the Cash Flow Investor Club to learn how you can partner with Kevin Bupp on current and upcoming opportunities to create passive cash flow and build wealth. Join the Club! Looking for the ultimate guide to passive investing? Grab a copy of my latest book, The Cash Flow Investor at KevinBupp.com.  Tap into a wealth of free information on Commercial Real Estate Investing by listening to past podcast episodes at KevinBupp.com/Podcast. Chapters:  00:00 Intro 01:05 Transitioning to Real Estate 06:08 The Birth of VICI Properties 15:04 Property and Operator Quality 20:43 Triple Net Lease Tenants 25:45 Weighing Risk & Reward 30:46 Mitigating Concentration Risk 33:09 The Future of Experiential Real Estate 36:33 The Ultimate Durability Test 41:29 Connect with Ed! Disclaimer: This podcast is for educational purposes only and does not constitute financial, tax, or legal advice. Consult with a qualified professional before making any investment decisions.