Mostly, it’s underwriting deals. Here’s what happens: Either I find a deal on the MLS, Loopnet, etc. or else a broker or client sends it to me I get my hands on the rent roll (surprisingly hard, sometimes) I look at the property on google maps to get a sense for the location and, critically,
In our business, you get surprised all the time in ways both great and terrible. Take this new project we’re doing in Highland Park… It turns out there’s a two inch layer of concrete under the floor, meaning we can experiment with doing polished concrete for less than it would cost us to do hardwood.
In February of 2012, I wrote a piece confidently predicting that Westlake, the neighborhood roughly south of Silver Lake and Echo Park and west of Downtown, would never gentrify. Here is my piece in all its glory. To lazy to click the link? Here’s my (flawed) argument in a nutshell: The housing stock is incredibly dense,
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.
In a word, “No”. Why? Because we’re not interested in buying the properties our brokerage clients want to buy. Our typical brokerage assignment is to help someone buy: 2-4 units $500k-1MM 20-25% down (so, looking to put out $100-250k in capital) 70-75% LTV mortgage Minimal renovation required Cashflowing (eg priced at 12x GRM or less) The