When it comes to real estate investing, risk and reward are always linked, but not all strategies approach that balance in the same way. In this episode of Zen and the Art of Real Estate Investing, Jonathan speaks with Mark Khuri, co-founder of SMK Capital Management, about building a passive income strategy rooted in diversification, transparency, and long-term stability.
Mark’s approach isn’t built on chasing the highest return. It’s about preserving wealth and minimizing downside while still generating meaningful income for investors. And he’s been refining this model for over two decades.
A Real Estate Career Built on Layers of Experience
Mark didn’t start in fund management. Like many investors, he began with residential value-add deals — flipping and managing single-family homes with his family. That hands-on experience taught him a lot about the operational side of real estate, but it also revealed the limitations of doing everything alone.
Eventually, he pivoted to building SMK Capital, which now offers diversified private real estate funds that invest across multiple operators, asset types, and markets. These funds are built for passive investors who want the benefits of real estate ownership—cash flow, appreciation, and tax advantages without the day-to-day headaches of direct management.
Why Diversification Matters More Than Ever
During the conversation, Mark and Jonathan discuss how diversification works beyond just property type. At SMK, portfolios are diversified across:
- Asset classes – including multifamily, mobile home parks, triple net lease retail, and industrial
- Geographic markets – reducing exposure to regional risks like insurance spikes or regulatory changes
- Operating partners – minimizing reliance on any one group or strategy
The result? More stable performance over time and less stress during market shifts.
Mark also explains how fixed-income assets, such as private debt, are utilized in his funds to provide early-stage returns, while longer-term projects require time to stabilize and mature. For passive investors, this layered approach offers the kind of predictability that’s often missing in single-asset syndications.
Trust Comes Down to Communication
A central theme in this episode is trust. Mark walks through how SMK selects sponsors, evaluates deals, and manages expectations. One of the most important things they look for is transparency — clear, consistent communication and a track record that matches the story.
Jonathan offers his own perspective on how passive investors can more effectively evaluate deals, comprehend capital deployment timelines, and pose the right questions before making an investment. It’s not just about the numbers. It’s about alignment, clarity, and knowing who you’re working with.
Rethinking Passive Investing
This episode challenges the notion that “passive” must mean disconnected. Mark’s strategy demonstrates that, with the right partners, a diversified structure, and a long-term mindset, investors can mitigate risk while still achieving strong, consistent returns.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/251/.