Results for ‘Buying’ category

There are no bad assets

I love Quora, the question and answer site. But, multiple times per day, people post questions like “Is buying an apartment building a good investment?” or “Should I buy stock?” or whatever. These are dumb questions, because whether an asset is good to buy is 100% determined by the price. For example: Imagine a run-down buildingon a

Thinking about the next recession

One of the key insights in Howard Mark’s book, The Most Important Thing, which I love, is that you can’t predict a recession with any certainty. All you can do is (i) know that the pendulum always swings back; and (ii) observe where the pendulum is currently. It’s pretty clear that the pendulum is currently

Anatomy of a homerun

Thought I’d share numbers for a deal we just stabilized. Not going to share the address, because I don’t want to tip anyone off re neighborhoods, etc. Anyway, here goes: Acquired in Spring 2015 Stabilized approx. 13 months later All in for ~$2.37MM Stabilized rent roll of $262k Implied GRM of 9x (!) Forecast NOI of $190k

Trusting the process

One of my agents called me yesterday to see if I had any ideas to help her. She’s got a great client who has been making strong offers on single family homes and getting outbid. Everyone is frustrated. As it happens, my parents are in the market for a home on the Eastside (working with

Why people pay high prices

Had someone yesterday email me asking why I think people are paying insane prices for Los Angeles apartment buildings. By insane, I mean 15-19x annual rents. At those prices, there’s basically no cashflow; in fact, at the upper end of the range, it’s likely you’ll pay to own the asset each month (instead of the

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