We’re just finishing up renovations on this 9 unit property on behalf of another investor group. The property is fully leased and, in my opinion, pretty damn awesome. Take a look at the before and after shots below:
Author: Moses Kagan
Who cares if the tenants find out the building is for sale?
Pretty often, owners want to try to prevent their tenants from knowing the building is for sale. I get why this is a concern with market-rate tenants. They are paying full-whack and you want to keep them happy. But, with under-market tenants, this is just insane. What, exactly, are they worried about? That the tenants … Continue reading “Who cares if the tenants find out the building is for sale?”
Two skills kids should have for life
Two things to which I will definitely expose my kids well before they reach adulthood: Accounting. I know this is kind of lame, but accounting underpins the entire financial world. I regard it as a crime that learning basic accounting wasn’t required of me in highschool or college. Yeah, I would have protested at the time, … Continue reading “Two skills kids should have for life”
One possible outcome for Adaptive
Have been doing some musing on the future of Adaptive. One likely outcome is that we keep doing exactly what we’re doing for, say, the next 30 years. We’ve demonstrated the ability to renovate 100-150 units / year. So, if we did that, we’d end up with ownership stakes in private partnerships owning, say, 4,000 … Continue reading “One possible outcome for Adaptive”
Another off-market deal
We just went under contract to buy a reasonably large non-rent control building in an area we like. The price isn’t a steal by any means, but it’s fair. The reason is that there was no auction. The broker, a reader of this blog, has been managing the building for the seller for a long … Continue reading “Another off-market deal”
One effect of our preference for denser living
One of the themes to which we return again and again on this blog is the shift in consumer preferences from suburban, single-family homes to denser, urban apartments. I obviously love this shift, because it’s very good for our business. But, interestingly, the shift has not been good for housing sector, which is typically a … Continue reading “One effect of our preference for denser living”
Using a tenants-in-common structure for 1031 proceeds
Over the past six months, we at Adaptive have got a crash course in tenants-in-common deals and I think this may open a new avenue for growth in our business. To understand why, you first need to understand what a TIC deal is: A tenants-in-common situation is one in which multiple owners possess a property … Continue reading “Using a tenants-in-common structure for 1031 proceeds”
The problem with portfolio sales
As the market heats up, am seeing more and more portfolio sales. That’s when an owner decides he’s ready to exit the market and offers up all of his properties for sale together, rather than individually. There are at least three reasons for an owner to do this: He’s not interested in selling part of the … Continue reading “The problem with portfolio sales”
Why LA public schools matter to landlords
Today’s LA Times notes that the LA Unified School District (LAUD) is close to hiring a search firm to take over the job of finding our next superintendent. Wondering why I’m discussing this on a multifamily real estate blog? Well, I’m thinking about long-term tenant demand. Right now, the vast majority of new tenants moving … Continue reading “Why LA public schools matter to landlords”
Always always always check the estimated closing statement
Always, always, always check your Buyer’s estimated closing statement. Why? First, you have to understand what a Buyer’s estimated closing statement is. It’s a piece of paper that shows escrow’s calculation of how much money needs to come in from the buyer to get the deal closed. But wait, you ask, why do we need calculations? … Continue reading “Always always always check the estimated closing statement”