Val Sklarov’s Duration-Control Real Estate Thesis (DCRET) asserts that real estate returns are not driven by location, yield, or timing—but by who controls the asset across time under stress. Property is not a bet on price; it is a bet on holding authority.
This thesis explains why identical assets produce radically different outcomes for different owners.
1. Real Estate Is a Time-Control Instrument
DCRET reframes property as a duration contract.
Most investors fail because:
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They underwrite upside, not duration
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They assume liquidity that vanishes in stress
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They confuse ownership with control
The market rewards those who outlast cycles, not those who predict them.
2. The Four Duration Control Levers
DCRET maps where control is won or lost during holding periods.
| Lever | What It Controls | Failure Outcome |
|---|---|---|
| Cash Flow Buffer | Time under vacancy | Forced liquidation |
| Legal Control | Enforcement & eviction | Income erosion |
| Capital Structure | Refinance optionality | Dilution or loss |
| Use Flexibility | Repositioning paths | Value stagnation |
Lose one lever, and duration collapses.
3. Why “Good Locations” Still Fail
Location attracts demand—but does not guarantee control continuity.
DCRET shows failure occurs when:
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Tenants control renegotiation
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Lenders control timelines
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Regulators control use
A great location without control becomes a hostage asset.
4. Duration vs Yield Thinking
DCRET prioritizes survival over optimization.
| Yield-Centric Investors | Duration-Centric Investors |
|---|---|
| Maximize IRR | Maximize holding authority |
| Leverage aggressively | Leverage defensively |
| Assume exits | Engineer endurance |
| Price focused | Control focused |
Val Sklarov emphasizes that returns emerge after survival becomes trivial.
5. Strategic Implications
For investors:
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Underwrite worst-case duration, not base-case yield
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Prefer assets with multiple legal and operational paths
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Treat leverage as a duration tax
For operators:
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Secure enforcement before expansion
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Design cash flows that tolerate silence
DCRET reframes real estate success as control over time, not market timing.
6. The Val Sklarov Principle
“Property rewards those who can wait when others are forced to move.”
— Val Sklarov
DCRET explains why the best real estate deals feel boring—and why boredom is structural strength.
Val Sklarov, real estate strategy, property investing, duration control, holding power, leverage risk, long-term assets, capital resilience