Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

How to Mitigate Risks in Medical Office Building Investments

21 Jan 2025 · 1 min

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In this segment of a presentation on medical office building investments, the speaker outlines five primary risks, referencing Warren Buffett’s mantra of never losing money as a guiding principle. The first risk highlighted is exposure to economic recessions, which the speaker claims is mitigated by focusing on recession‑resistant industries. The second risk concerns tenant creditworthiness, especially for long‑term (15‑year) leases; the speaker stresses the need for strong tenants and describes mitigation tactics that draw on the firm’s experience acquiring healthcare businesses and conducting a three‑year financial review of prospective tenants to ensure they remain viable and do not default. The overall message is that disciplined risk assessment, industry selection, and rigorous financial due diligence are embedded in the business model to protect investors.

Chapters

So I, you know, I'll flip it into positive, but talk about the 5 risks. And so, you know, there's famous quotes on Warren Buffett about never lose money, never lose money, never lose money. And so it's really embedded into our business model. One, that, you know, you're always at risk to the recessions. And so we're in kind of recession-resistant industries. 2, our risk is that tenant. These are 15-year leases. They need to be strong. And so we're using our experience buying healthcare businesses, We're doing 3 years of financials, and so we're trying to mitigate that risk that that tenant doesn't go dark.