Real estate lacks network effects, and I’m ok with it

Am reading a biography of Lew Wasserman, one of the most powerful people in the history of Hollywood, and it’s giving me plenty to think about. Lew took over MCA, the first real powerhouse talent agency, from Jules Stein, its founder. Stein started MCA representing bands that played at dancehalls (this is way back, in … Continue reading “Real estate lacks network effects, and I’m ok with it”

An annoying new trend in apartment building listings

Apologies for the slow posting – have a lot going on right now. Wanted to highlight a ridiculous trend I’ve noticed recently in listings for apartment buildings. (Don’t want to offend anyone, so not going to name anyone in particular.) The trend is that brokers try to convince me to buy a property by noting … Continue reading “An annoying new trend in apartment building listings”

Where to find opportunities to cut construction costs

Have been spending some time reading about buying companies. One piece of advice is to buy suppliers that supply customers with a product or service which represents a small piece of the customers’ own business, but for which quality is crucial. For example, find a pipe-threading company that cuts pipe threads for oil and gas … Continue reading “Where to find opportunities to cut construction costs”

What to do if you get a Notice of General Manager’s Hearing and Notice of Acceptance into the Rent Escrow Account Program

Late last week, a new property management client sent over a Notice of General Manager’s Hearing and Notice of Acceptance into the Rent Escrow Account Program (REAP) from the Housing and Community Investment Department of Los Angeles (HCIDLA). That’s one of the worst letters you can receive as an owner of apartment buildings in Los … Continue reading “What to do if you get a Notice of General Manager’s Hearing and Notice of Acceptance into the Rent Escrow Account Program”

A good book for prospective investors in real estate deals

Just read a really great book that I’d like to recommend here: Investing in Real Estate Private Equity, by “Sean Cook” (a pseudonym for an active market participant). The book is intended as a primer for (potential) passive investors in private real estate deals. It lays out all of the basic concepts, from pref to promote to fees, etc. Some … Continue reading “A good book for prospective investors in real estate deals”