Mostly, it’s underwriting deals. Here’s what happens: Either I find a deal on the MLS, Loopnet, etc. or else a broker or client sends it to me I get my hands on the rent roll (surprisingly hard, sometimes) I look at the property on google maps to get a sense for the location and, critically, … Continue reading “What I do all day”
Author: Moses Kagan
What we’re for
Cashflow over appreciation Quantitative over qualitative Verification over trust Diligence over cross your fingers and hope Independence over conformity (Controlled) aggression over timidity Equity over debt Reputation over (short-term) profits
What we’re against
Most people think that the way to get ahead is to get a job and work hard. Their salary goes up a bit. They save a little money. They immediately go buy a house with the biggest mortgage they can get. They think the loan is against the house, but really it’s a loan against … Continue reading “What we’re against”
Good news about our new Highland Park apartment project… and bad news
In our business, you get surprised all the time in ways both great and terrible. Take this new project we’re doing in Highland Park… It turns out there’s a two inch layer of concrete under the floor, meaning we can experiment with doing polished concrete for less than it would cost us to do hardwood. … Continue reading “Good news about our new Highland Park apartment project… and bad news”
A great day for one of our agents
One of our agents just earned a $48k commission for repping both buyer and seller on a deal over the past month or so. Ordinarily, this blog is mostly about the deals, so I’m sure you’re interested in the details of this one. However, I don’t want to steal the agent’s thunder… so it must suffice to say … Continue reading “A great day for one of our agents”
How we value apartment buildings (part 2)
In my last post, I talked about how our approach to valuing apartment buildings derives from my experience as an investment banker trying to value media and technology companies. Simply put: When you’re trying to get a sense for the value of an asset in an illiquid market, you want to use all of the … Continue reading “How we value apartment buildings (part 2)”
How Adaptive thinks about valuing apartment buildings
The first time someone asked me to come in to talk to them about listing their property for sale, I was pretty unsure about how to handle the meeting. Of course, I had my own ideas about the value of the property. But I was also concerned about the possibility of losing the assignment by … Continue reading “How Adaptive thinks about valuing apartment buildings”
Sorry, Westlake, I was wrong
In February of 2012, I wrote a piece confidently predicting that Westlake, the neighborhood roughly south of Silver Lake and Echo Park and west of Downtown, would never gentrify. Here is my piece in all its glory. To lazy to click the link? Here’s my (flawed) argument in a nutshell: The housing stock is incredibly dense, … Continue reading “Sorry, Westlake, I was wrong”
When might you sell?
On the one hand, the answer is absolutely “never”. I’ve sold approx. 15 buildings I’ve renovated since 2012 and I regret selling nearly all of them. Why? Because when you own a renovated apartment building with high quality tenants in an improving area, you can expect continued rent, and therefore value, increases over time. Add to … Continue reading “When might you sell?”
Why NELA
Sometimes clients ask me why we’re so focused on Northeast LA (Silver Lake, Echo Park, Highland Park, etc.). After all, LA is a big place and there are plenty of other places to buy apartment buildings. So why the focus on the hipster areas? Hint: It ain’t because we love asymmetrical haircuts, beards and artisanal pickles. … Continue reading “Why NELA”