Building a platform

Here’s a sobering fact: The overhead at Adaptive Realty runs something like $45k / month.

That means, before Jon and I see $1 in 2016, we need to bring in revenue of around $540k.

Why have we set our business up like this, rather than just being “deal doers” who are lean and mean?

The answer is that our ambitions go further than just making money on any individual deal.

We’re trying to build a big asset management business, one which is capable of accepting capital in $20MM chunks from serious investors and profitably deploying it.

In our business, that means having serious accounting, property management, acquisitions and construction resources in-house. So that’s what we have built.

Over the short term, I’m pretty confident what we’re doing results in fewer dollars actually reaching our pockets. But over the medium-to-long term, I’m very confident that building a real business will pay off.