Hannah HammondFounder & CEO, HB Capital & The Firm RE · CEO of HB Capital | Helping CRE Developers & Investors Fund Deals Nationwide | Host of The Hannah Hammond Show

This Critical Mistake Could Jeopardize Your Assets In CRE..

Name: This Critical Mistake Could Jeopardize Your Assets In CRE..
Uploaded: 2026-02-27T20:49:03+00:00
Duration: 50 s
Channel: Hannah Hammond
Description: In this commentary, the speaker highlights a common and costly error among commercial real estate (CRE) investors: failing to maintain sufficient cash…

27 Feb 2026 · 1 min

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In this commentary, the speaker highlights a common and costly error among commercial real estate (CRE) investors: failing to maintain sufficient cash reserves. He explains that when external economic factors—such as sharply rising interest rates—strain a property’s cash flow, investors without adequate reserves must resort to capital calls. If investors cannot meet these calls, loans may default, leading to loss of the asset, damage to the investor’s track record, and erosion of confidence. Moreover, a single loan default can trigger a cascade, causing the entire portfolio to become due and potentially destroying years of built value. The overall message is a cautionary warning that robust cash reserves are essential for long‑term success and stability in CRE investing.

Chapters

One of the mistakes that I see so many commercial real estate investors making is they just don't keep enough cash reserves to be able to keep these assets afloat when something happens in the economy that they can't control such as interest rates going up tremendously. That's the difference between a successful real estate investor or syndicator or fund manager versus a lot of those who we see fail. Unfortunately on a regular basis you don't have enough cash reserves then they have to go to their investors, they have to do capital calls. They can't get the capital, the loan goes into default, they lose the asset. They have that on their track record. They disappoint their investors, lose their investors money, lose the property. And when one loan gets called due from a default sometimes their entire portfolio can get called due and it can destroy everything that they have built over so many years because they just didn't keep enough cash in reserves to keep their assets afloat. When times get tough.