Question 1

Where are you located and can I speak with someone?

Accepted Answer

We are based out of Bend Oregon and you can schedule a call directly with the Co-Founder, Mark Khuri.

Question 2

What is the process to get started with SMK?

Accepted Answer

At SMK we take a personal approach to our business and want to connect directly with each and every one of our investors. If you want to invest in commercial real estate with us, please start with the investor questionnaire and we will reach out to schedule a phone consultation.

Question 3

How long have you been in business?

Accepted Answer

Dr. Khuri began investing in real estate in the 1970's and Mark began in 2005. We formed SMK Capital Management in 2010.

Question 4

What is your track record?

Accepted Answer

We have been involved in over 120 investments with a combined asset value over $1.5 billion, including both commercial and residential real estate investments.

Question 5

How do you source and select investments?

Accepted Answer

We do not work directly with real estate agents or brokers and do not look at the MLS. SMK Capital leverages its established relationships with operating partners who source opportunities, and we underwrite and analyze them against our investment criteria.

Question 6

Have any 3rd parties verified you and your firm?

Accepted Answer

Yes, in 2019 volunteers of the Keiretsu Forum underwent a 4-month due diligence assessment of Mark Khuri and our Recession Resistant Fund, and their final due diligence report can be viewed online.

Question 7

What is your investment minimum and is this flexible?

Accepted Answer

Most of our offerings have class share minimums starting at $50,000. We understand that trust takes time to build and may accept lower amounts for first time investors — please connect with us to discuss.

Question 8

Who handles asset management and day to day operations?

Accepted Answer

The operating partner typically handles day to day decisions. In some cases, SMK will have decision-making rights. Specific duties are detailed in each offering’s materials.

Question 9

Once I'm invested can I get my money out before the end of the investment term?

Accepted Answer

The majority of investments are illiquid because capital is used to acquire real estate. Please refer to offering documents for details on the withdrawal process.

Question 10

Am I a guarantor on the debt?

Accepted Answer

No — our passive investment structure means you do not personally guarantee debt. Operating partners secure debt for the investment.

Question 11

What kind of protection do investors have?

Accepted Answer

As an equity limited partner and passive investor, you are protected from lawsuits and liability arising from property operations, limited to the amount you invest, without additional personal exposure.

Question 12

Can I invest through a self-directed IRA?

Accepted Answer

Most of our investments allow self-directed IRA investments. Learn more about self-directed IRAs if you plan to use one.

Question 13

What is an accredited investor and do I have to be accredited to invest?

Accepted Answer

Although not all invest ments require accreditation, the majority do. Being accredited generally means satisfying specific income or net worth requirements.

Question 14

How do I verify that I am accredited?

Accepted Answer

Accreditation requires third-party verification, which can be done through external verification platforms or forms specified by SMK.

Question 15

What kind of reporting will I receive?

Accepted Answer

Investors receive quarterly investment updates and an annual K-1 for tax reporting in conjunction with our operating partners.

Question 16

Are your investments in Equity or Debt?

Accepted Answer

Most of our investments are equity positions, with occasional debt offerings — specifics are disclosed in each investment offering.

Question 17

How do you structure your equity investments?

Accepted Answer

Equity investments are typically structured through limited liability companies (LLCs) managed by SMK and in partnership with other investors and operating partners.

Question 18

How long do you hold an investment?

Accepted Answer

Most investments targeted range between 3–10 years in duration.

Question 19

How often do I get updates and distributions?

Accepted Answer

Investors receive quarterly updates and distributions from their investments.

Question 20

What are the tax implications and advantages of equity investments?

Accepted Answer

LLC equity investments can be treated as partnerships for tax purposes, allowing certain pass-through tax benefits such as depreciation deductions that may lower taxable income.

Real Estate Investment Fund

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