On Friday, a loan broker who reads this blog secured for us a letter of intent (LOI) from a bank for a refi of a project we just stabilized. We’re all-into the deal for just under $2.8MM and the LOI calls for the bank to loan us that amount via a cash-out refinancing. Now, going … Continue reading “Progress on the refi front”
Author: Moses Kagan
Closing on another one today
Today, we’re closing on a little fourplex deal in a neighborhood we really like. It’s a roughly $1.1MM all-in project, way too small on its own to be worth our time. However, it’s near a bunch of other stuff we’re renovating, it’s a simple project (no reconfiguration of the units), and we like the area … Continue reading “Closing on another one today”
LA crime is ticking up
Per the LA Times, crime is up 12% so far this year. We have experienced this alarming trend in our own business. We have been managing apartments in LA since 2008. Between 2008 and 2014, we had one break-in. This year, we’ve had 3-4. If you talk to any police officer, she will tell … Continue reading “LA crime is ticking up”
What’s keeping me up at night
Do you know what’s keeping me up at night lately? It’s the following question: To what extent are apartments downtown and in Hollywood substitutes for the apartments we are renovating in East Hollywood, Silver Lake, Highland Park, etc.? I mean “substitutes” in the economic theory sense: “A product or service that satisfies the need of … Continue reading “What’s keeping me up at night”
What’s going on today
Just in case anyone thinks what we do is glamorous, thought I’d give you guys a sense for what I’m working on today. Am working on securing four different loans: Refi of a stabilized property so we can return ~70-80% of the capital invested to our investors Two bridge / construction loans One line of credit … Continue reading “What’s going on today”
Our business depends on this one little joke
Jon and I were talking about a deal we’re considering doing. We were going through the pluses and minuses, trying to make sure we were both comfortable with it. One of us said: “…, and we would be putting out a ton of capital.” We both paused, laughed, and then shook our heads. The reason … Continue reading “Our business depends on this one little joke”
An irritating refinancing issue
Have just begun the process of refinancing 201 N Ave 55, a 12 unit property we renovated and recently stabilized. Thought I’d share with you an irritating issue I’m running into, so that you aren’t surprised when it happens to you. Let me begin by giving you some sample numbers. These aren’t actuals for the … Continue reading “An irritating refinancing issue”
Thinking about the effect of competition on our business
Just started Peter Thiel’s book about start-ups. Among the more interesting arguments in the book is about competition. Thiel argues that competition is a bad thing for businesses, because economic theory teaches us that, in competitive markets, profit is competed down to zero. Instead of entering into competitive markets, Thiel advises striking out into new … Continue reading “Thinking about the effect of competition on our business”
If you’re going to allow units without parking, allow lots of them!
One of the iron-clad rules I learned while doing the Better Dwellings portfolio is about to be turned on its head by the city council. Here’s the rule: Never buy a building with a non-conforming unit. I learned that rule the hard way at 2117 Clinton St., where we got whacked on a SCEP inspection. … Continue reading “If you’re going to allow units without parking, allow lots of them!”
Against the Broadway people-mover
Yesterday, Curbed had an article about the proposed DTLA people-mover, which is apparently going to travel about the speed of a walking human. I’ve been a supporter of the project for a while, because I love Broadway and want it to continue to improve. But I’ve changed my mind, and here’s why: Two days ago, … Continue reading “Against the Broadway people-mover”