Results for ‘Buying’ category

The importance of a diligence checklist

The diligence process for a multifamily building is complex. In essence, you are buying a small business, often using a lot of debt. And, if you’re buying the kind of beat-up buildings in which we specialize, often you’re doing the deal with missing / incorrect information from the seller. To make sure you don’t miss

What I do all day

Someone asked me this weekend what, exactly, I do all day. The truth is, many days, I don’t do much more than read. Sure, people come into my office for guidance on how to handle tricky issues. But, in those cases, I try to get the person asking the question to make a recommendation, which

What is the difference between “price” and “value”?

Answered this question on Quora yesterday and thought it would be interesting to re-post here: The key to understanding “value” is to separate it from “price”. “Price” is the amount of a given currency at which a buyer is willing to buy or a seller is willing to sell (sometimes, those numbers overlap, in which

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

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