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Thinking through investing in a hot market

As we look at making deals late in this expansion phase, I have been doing a lot of thinking about what, exactly, we risk by buying high. After all, we are (effectively) permanent holders, so it’s not exactly clear why we should care about prices going down after we acquire an asset. But I am

Will the glut downtown affect Adaptive?

…and we’re back. Have been getting a lot of questions re the high apartment vacancy rate in DTLA (about which Curbed wrote the other day). Here’s the situation: As usual for this stage of the cycle, developers have overbuilt downtown¬†(they always do this, because DTLA is one of the few neighborhoods in which it is

Predicting the next recession

Right now, as an investor, the key question is: “How much longer does the present growth cycle have to run?” If we’re approaching the end of this cycle, then investors ought to batten down the hatches, de-lever, horde cash, and get ready to bargain-hunt. If, on the other hand, we’re still looking at 2, 3,

Where our tenants are coming from

Regular readers know that I approve all of our tenants personally. Why? Well, I’m the one who’s going to have to deal with going to eviction court if they turn out to be screw-ups, so it’s best that I sign off on them upfront. But there’s another reason, too: Reviewing all the tenant applications gives

Why the zoning matters, even if you’re not building

Have been spending some time looking at new neighborhoods around LA for possible investments. Many of the areas I’m reviewing were developed later than the areas in which we’ve traditionally done business. Because they were developed later, when zoning codes were better established and enforced, the apartment buildings I’m reviewing tend to be grouped near

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