Regular readers know I’m not a big fan of leverage. Yes, it has the ability to dramatically improve your results in upside scenarios. But I got started in this business during a total wipe-out and I’m determined not to expose myself or my investors to any real risk of losing properties in the event of
Have been thinking about what it would take for us to learn a new city. Other people do this by reviewing research reports and then visiting a few times for broker tours. That is not how we would do it. We would start with research in order to narrow down the choices to those cities
We basically do the same deal over and over again. We find some screwed-up building in an improving neighborhood, we figure out how to renovate it, and then we lease and manage it. Because the deals are so similar, it’s easy to start to get bored. After all, smart people generally appreciate novelty, learning, etc.
If you’re wondering why we have a shortage of housing in Los Angeles, I’m here to shed a little light. We recently bought a duplex with the plan of adding a second story and two more units. This is exactly the type of deal the city should love: We’re adding additional housing to a neighborhood
Am spending most of the day today at RealShare, the big real estate conference in Century City. If you’re attending, too, come say hello. I’ll be the guy with the inappropriately shaggy hair and beard (because I’m not selling anything).