Today I want to talk about a little-discussed area of money management: How to handle call-downs. First, what’s a call-down? In most real estate deals, the investors don’t send all their money for the whole deal on the day of closing. Instead, they agree to commit a specific total amount to the project and then leave … Continue reading “How to handle call-downs”
Category: Building Adaptive
Thanks to Kris and David
Am slammed all day today, but wanted to use this opportunity to give a huge public THANK YOU to two people who don’t get nearly enough credit in our organization: Kris and David F. Together, Kris and David handle all of our bookkeeping, accounts receivable and payable, oversee 50+ bank accounts, produce financial reporting, and … Continue reading “Thanks to Kris and David”
When to start lease-up on a rehabbed building?
Here’s a question we wrestle with all the time: When should lease-up begin? You’d think this would have an easy answer: When construction is done. But you’d be wrong. Usually, buildings are “showable” (eg look pretty close to complete) 2-4 weeks before the construction is actually done. And, after carrying the building with no cashflow … Continue reading “When to start lease-up on a rehabbed building?”
One lesson from our foray into ground-up construction
We’re closing today on what will become either our second or third ground-up project (depending on how you want to count this one). In going through the design / permitting process, I’ve already learned a pretty valuable lesson, which I’ll share here. I always wondered why investors wanted to see a higher pro forma yield on … Continue reading “One lesson from our foray into ground-up construction”
A short book recommendation
Am super busy today with deals and hiring, so this is going to be a short piece. Want to plug a business book which anyone interested in marketing, even tangentially, should definitely read: Permission Marketing by Seth Godin. It’s an old book… more than a decade now. But it’s timeless, because, unlike lots of marketing … Continue reading “A short book recommendation”
Found another good one
Is it really hard to find deals right now? Yes, it is. The market for income property continues to be very hot. And yet we just went into contract on a 12 unit with optimally-sized units and parking in a good location for ~$200 / sq ft. That’s a good deal now, but it also … Continue reading “Found another good one”
Do you want to pay the price?
Every morning, when I’m leaving the gym, I ask myself one question: Did I pay the price? What I mean by that is: Did I put in the effort necessary to get the result I want? It’s kind of a gut check, just to see if I really tried or if, for whatever reason, I slacked. … Continue reading “Do you want to pay the price?”
Update on 830-832 N Beaudry
Today, we’re putting the finishing touches on 830-832 Beaudry, a 7 unit building we renovated through Adaptive Realty Fund 3. This project ran into some hurdles and was delayed approximately three months past its scheduled completion date. Some of the delay was unavoidable, but most of it was the contractor failing to supply sufficient labor … Continue reading “Update on 830-832 N Beaudry”
Some rehab pics
Visited a smaller building we bought three months ago. About six months from now, these are going to be six of the nicest three bed units around, though you certainly can’t tell from how they look now!
The kind of risk we take
Was talking with an investor earlier this week about possibly financing our next ground-up deal. He considered our proposed deal structure and said, basically, “You guys aren’t taking any risk”. Which is sort of true, because we proposed to not put our own money in the deal. Instead, we were offering to backstop losses, partially fund overages, … Continue reading “The kind of risk we take”