Back when we started, Jon and I needed to sell renovated buildings. The reason was pretty simple: We needed the dough. When you’re in the money management business, you generally don’t see much in the way of money yourself until you make your partners money. They don’t take it on faith; they want cold hard
In our business, there is a lot of money to be made. I personally know agents who have cleared north of $1MM in gross commissions in good years. I know a guy who owns one of the midsize brokerages in LA and I think he clears $5-10MM / year. Obviously, huge asset managers like Blackstone, etc.
David Walentas of Two Trees Management. Who’s that? Walentas was in the business as small-time owner / developer in NY in the 1970s. Then, in the early 1980s, he made a deal to buy a bunch of warehouses in a then-ignored part of Brooklyn called DUMBO (“Down Under the Manhattan Bridge Overpass”) for something like
The short answer is, if it’s in Los Angeles, its probably worth more now than it has ever been worth in the past. Why? Because everyone with cash and a brain is sick of getting 0.01% interest in his/her checking account and is therefore chasing yield by buying buildings, because even a so-so deal on
When I first broke off from my job in investment banking and went into business for myself, I negotiated like a jerk. I was convinced that winning the early rounds of negotiations about setting things up was incredibly important, because doing so would set a precedent for how things would be in the future. I