Someone asked me last week when we have enough units to be “done”. The question threw me for a loop, because it’s something I’ve never really considered. That’s weird, right? I’m on a journey to build a big business investing money in apartment buildings and I’ve never really considered what the end-point is. I couldn’t … Continue reading “When will I be done?”
Author: Moses Kagan
An offer to my readers
Just read an interesting article (Wall Street Journal, subscription required) about one of the tactics Sequoia, one of the most successful VC firms, uses to find deals and want to replicate it. Here’s a description of the program: “Since 2009, Sequoia has funneled millions of dollars to scores of well-connected entrepreneurs, academics and other people known as … Continue reading “An offer to my readers”
How to think about entering a new neighborhood right now
Because the market is hot and interesting deals are fewer and farther between, we’ve been poking around in some new neighborhoods. Is this crazy? After all, isn’t a hot market exactly the wrong time to go outside your circle of competence? Under some circumstances, it’s not. If you can find a deal with good numbers and … Continue reading “How to think about entering a new neighborhood right now”
When is a rehab not a rehab?
When is a rehab not really a rehab? Here are some pics of a deal on Alvarado, a duplex we’re changing into a 4plex. As you’ll see, the only thing separating this “rehab” from a ground-up project is, well, a door-frame. On 7/28, after we bought it: On 9/17, mid demo: On 10/29, as the foundation … Continue reading “When is a rehab not a rehab?”
Why the rent is so damn high
Someone asked me yesterday why the rent in LA is so damn high. Figured it would make an interesting post for the blog, so here goes: Demand for close-in apartments in all major cities is growing due to: Demographics, eg more people in the prime rental age range of, says, 22-35; and A society-wide shift … Continue reading “Why the rent is so damn high”
Why we pull the permits and how we share them with clients
Here’s an annoying catch-22 in which we often find ourselves in the brokerage business: Obtaining permits for a client. To understand why, you first need to understand how important it is to pull the permits on any building before buying it. The idea of the due diligence process conducted during the contingency period is to … Continue reading “Why we pull the permits and how we share them with clients”
In defense of micro-units
Just read a fairly irritating article over at Curbed LA regarding “micro-units”, which are generally defined as apartments smaller than 400 sq ft. The tone of the article is pretty negative. The blogger (whose work I generally like) spends a lot of time emphasizing how small 400 sq ft is. Micro-units are part of the … Continue reading “In defense of micro-units”
Remember to do this before inspecting a property
Our agents have got pretty busy helping people buy apartment buildings, so I have been spending more time than usual advising on deals. One of the issues that keeps popping up is around inspections. As a buyer, it is imperative you personally inspect each and every unit in any building you intend to purchase. After … Continue reading “Remember to do this before inspecting a property”
San Francisco’s Proposition J: A really bad idea
Every time I get discouraged about city government in LA, I can depend on San Francisco to do something so crazy as to make LA look like it’s run by philosopher kings (or Michael Bloomberg; same thing). To wit, here’s an absolutely crazy proposition being put to the San Francisco voters: “Proposition J would create … Continue reading “San Francisco’s Proposition J: A really bad idea”
An update on our crowd-funding experiment
Yesterday, I sent an email to the mailing list to gauge reader interest in a new fund. Unlike previous funds, which had $100,000 minimum investments, we’re considering opening this one to investors with as little as $10,000. The reason is pretty simple: Grow the number of people who have invested with us and like what … Continue reading “An update on our crowd-funding experiment”