It’s been a while, so I figured I’d remind everyone exactly what we do here at Adaptive Realty: Money-management: This part of our business involves investing money on behalf of ourselves and our equity partners. The structures vary. Some deals are blind pools, where we select the properties to buy. Others are one-off JVs, where we … Continue reading “What we do”
Author: Moses Kagan
208 S Avenue 58 is done
Just finished a sweet little 5-unit in Highland Park on behalf of another group. This one had concrete floors on the ground floor, so we polished them. The effect is a little industrial in the pics, but really cool in person. If you’re interested in an amazing, reasonably-priced 3 bed apartment in Highland Park, reach … Continue reading “208 S Avenue 58 is done”
Yet another example of city-imposed insanity
Many of you know that LA is in the process of adopting stringent earthquake retrofit rules intended to prevent the collapse of so-called soft-story apartment buildings. So I thought you’d appreciate this story from the front lines: We are in the process of renovating a building with a soft-story for a partner. Here’s a picture … Continue reading “Yet another example of city-imposed insanity”
Considering crowdfunding
One of our competitors put a deal up on a crowdfunding site recently, so far with not-particularly-good results. Still, it made me think about whether crowdfunding is right for Adaptive. We have traditionally had a minimum investment of $100k for our deals. This is mostly for ease of administration… each investor, no matter how small, should … Continue reading “Considering crowdfunding”
What you’re borrowing against when you buy a single family home
Was talking to someone about whether she should buy a house last night and it dawned on me: Most people, even really smart people, don’t understand what they’re doing when they buy a house with a mortgage. Most people think, when they get a mortgage on a home, that they’re borrowing against the home. Wrong. … Continue reading “What you’re borrowing against when you buy a single family home”
From the local government desk, Franz Kafka reporting
Thought I’d relate a story today about the insanity of local government. We recently purchased a building which we intend to totally renovate. Due to the age of the building, the number of people who live there and lack of attention by the previous owner, there is a vermin problem in the building. The county … Continue reading “From the local government desk, Franz Kafka reporting”
Why we haven’t done commercial deals
“So, why don’t you guys do commercial deals?” I get asked that question a lot, so I figured I’d answer it here. The first thing to say is that we absolutely would do a commercial deal given the right balance between risk and reward (and investors who wanted to follow us into it). But I … Continue reading “Why we haven’t done commercial deals”
Some thoughts on high-end home flipping
Have spoken with a bunch of people over the past few days who are involved in high-end home flipping. This isn’t the kind of stuff that was going on in 2009-2012, where you could buy a foreclosed single family in say, Highland Park, for $400k, dump $50k into it, and sell for $550k. Those deals … Continue reading “Some thoughts on high-end home flipping”
Do single family home rentals work in LA in 2015?
One of our clients asked an interesting question yesterday that I think worthy of some discussion here: “Has Adaptive done any single family home deals where the rental numbers would work out to at least cover PITI after fixing up the property?” In other words, can you buy a single family home as a rental … Continue reading “Do single family home rentals work in LA in 2015?”
Whoa! Got my hands on someone else’s PPM…
Just got my hands on the marketing materials for a deal being syndicated by one of my (larger, more established) competitors. Was obviously thrilled to take a look at the forecast economics and how they are structuring deals. The structure is fine. They’re actually not really being compensated sufficiently for the work they’re doing on … Continue reading “Whoa! Got my hands on someone else’s PPM…”