Just missed on a deal I really wanted and I’m upset because I didn’t follow my own advice. When I’m brokering deals and people ask me what to bid, here is what I always tell them: It’s impossible to know what others will bid Instead, play with the numbers to figure out the highest price … Continue reading “We missed…”
Category: Buying
Concentration vs. diversification
One of the interesting issues with managing other people’s money is having to decide how exactly to allocate that money among projects. At any given fund size, you need to decide whether you should do a small number of big deals or a large number of small deals. All the theory points toward diversifying. After … Continue reading “Concentration vs. diversification”
Apologies for the lack of posts
Didn’t write Friday or Monday because I’ve been slammed. We were finishing up diligence on the first deal for Adaptive Realty Fund 3, our latest investment vehicle. Late last night, we removed contingencies, with closing to come early next week. On top of that, my very capable assistant has been out sick, so I’m doing … Continue reading “Apologies for the lack of posts”
Some stats on our business
Jon and I are hiring a photographer to go back and document all of the buildings we’ve renovated. She asked for a list, so I went back through my records to produce one. Thought you would be interested in the results of my research: Completed gut-renovations on 25 buildings totaling 156 units Renovations in progress … Continue reading “Some stats on our business”
Taking apart a deal: An East Hollywood Duplex
Today, I’m going to try something new: Taking a look at a deal in one of our neighborhoods so that we can get a sense for what the numbers look like for the new owner. So, let’s take a look at an East Hollywood duplex that sold yesterday. I should start out by saying I didn’t offer … Continue reading “Taking apart a deal: An East Hollywood Duplex”
Off market-deal
Not to beat a dead horse, but: We have a reasonably interesting, off-market 4plex deal that we’re going to send out tomorrow. It’s not going to set anyone’s world on fire, but we think it’s a worthwhile project for someone who likes Silver Lake and is willing to do some work to add value. And … Continue reading “Off market-deal”
Why we don’t announce closings
If you’re at all active in real estate, your email account is spammed daily by brokers announcing the closings of their latest deals. Why do they do this? Because doing so: Shows everyone in the market how active the broker is Keeps the brokers’ name in front of potential clients, increasing the chances potential clients call … Continue reading “Why we don’t announce closings”
Adaptive’s proof of funds problem
When you make an offer on a building, what you’re really saying to the owner is: “Please give me the exclusive right to consider buying your building at this price for the next 21 (or 30 or 60) days.” For an owner to accept, she needs to be ok with your price and, crucially, as … Continue reading “Adaptive’s proof of funds problem”
What we’re against
Most people think that the way to get ahead is to get a job and work hard. Their salary goes up a bit. They save a little money. They immediately go buy a house with the biggest mortgage they can get. They think the loan is against the house, but really it’s a loan against … Continue reading “What we’re against”
Why NELA
Sometimes clients ask me why we’re so focused on Northeast LA (Silver Lake, Echo Park, Highland Park, etc.). After all, LA is a big place and there are plenty of other places to buy apartment buildings. So why the focus on the hipster areas? Hint: It ain’t because we love asymmetrical haircuts, beards and artisanal pickles. … Continue reading “Why NELA”