Have been reading Warren Buffett’s collected shareholder letters. Strongly recommend them to anyone interested in business / investing.
One of the things that Buffett does in his letters is to set out his acquisition criteria. And, interestingly, as you read through the different years, you see that putting it in the letter works – he actually buys companies recommended by his shareholder-readers.
So, here, with no further preamble, here are our criteria for acquisitions:
1. Apartment buildings from 2 units all the way up to 30+ units
2. In a gentrifying area: Hollywood, East Hollywood, Silver Lake, Echo Park, Highland Park, Glassell Park, China Town, Mid City, etc.
3. Owner willing to sell at $200 / sq ft or less. (If you don’t know the square footage of the building, you can find it by going to zimas.lacity.org and entering the address in the “search” box.)
4. I don’t care about low rents, deferred maintenance, structural problems, city problems, etc.
5. Not on the MLS / Loopnet / CoStar / etc. (I look at these 50 times a day)
If you own or know someone who owns a building that fits the above criteria, get in touch. If you give me an address, a rent roll, and an asking price, I will tell you within five minutes if we are interested.
We pay all cash and can close in 10 days, if speed is desirable for the seller.
We protect brokers and intermediaries. That means that, if you bring us an idea or opportunity that fits the above criteria, we’ll figure out how to compensate you. And, if we can’t reach agreement regarding your compensation, we will not disclose your idea or opportunity to anyone else without your permission.
Have an opportunity? Get in touch.