Results for ‘Development’ category

Don’t be an ostrich

In our business, shit happens. That’s just the way it is. Tenants try to short you on rent. Contractors try to extort money through bogus change-orders. City inspectors call you out for things you know are fine. Buyers try to chip price. Sellers lie about their rent rolls. And on and on and on. When

Avoiding a pretty painful “oops”

A reader wrote in to ask me a question about yesterday’s piece, which argued for refinancing and holding, rather than selling, completed repositioning projects. The question: “Only thing I don’t understand is why not refi on a LTV more than 60% to get back all of your original 2million dollars.” It’s a reasonable question. After

To sell or not to sell

One of the problems a beginning money manager has is deciding whether to sell or hold completed projects. To understand dilemma, you first need to understand what we’re generally left with when a project is completed: Fully renovated building with all new plumbing, electric, etc. High quality tenants on modern leases with good security deposits An

How a good contractor handles inspectors

By now, we’ve had a LOT of experience dealing with city inspections. And we’ve seen how many different contractors handle them. And here’s what separates the contractors who get their permits signed off from the ones who get endless streams of corrections: Good quality work (obviously); and Confidence. The nature of renovating old buildings is

What we want in a contractor

The construction part of our business is inherently messy. This isn’t new construction, where you start with a nice, flat lot and build exactly what your architect drew on the plans. Our raw material is old buildings with weird framing where the foundation has probably settled unevenly over the years. That means that what is on

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