In a word, “No”. Why? Because we’re not interested in buying the properties our brokerage clients want to buy. Our typical brokerage assignment is to help someone buy: 2-4 units $500k-1MM 20-25% down (so, looking to put out $100-250k in capital) 70-75% LTV mortgage Minimal renovation required Cashflowing (eg priced at 12x GRM or less) The … Continue reading “Do we compete with our brokerage clients?”
Author: Moses Kagan
How the Adaptive brokerage works
Regular readers know that Adaptive has a small but very active brokerage business. Figured I’d take the time today to explain where it came from and how it works. Back when I was buying and renovating buildings through Better Dwellings, my first real estate vehicle, I started to get frustrated with the way the deals were … Continue reading “How the Adaptive brokerage works”
How a fund manager gets paid
Do you ever wonder how, exactly, Adaptive makes money? Figured I’d break it down for you. Today, let’s talk about our investment funds. These are discretionary investment vehicles. That means a group of people with capital to deploy commit a certain amount of money (say, $100-250k) to the entity. Then, we, as managers of the … Continue reading “How a fund manager gets paid”
Why our infrastructure is falling apart
The NY Times had an interesting piece over the weekend about LA’s failing infrastructure. It focused, as all these pieces do, on the age of our pipes, sidewalks, etc., plus on CA’s general tax-aversion. What it left out was any discussion of the role our zoning code plays. Here’s the deal: If, as a city, … Continue reading “Why our infrastructure is falling apart”
Lyft, Uber and America
Regular readers know I’m a major fan of ride-sharing companies. They’ve totally changed the way that I, and many other Angelos, get around our city. And, as I’ve written before, I think the changes are sufficiently profound to eventually reshape the built environment here, too. But today I want to focus on what I regard … Continue reading “Lyft, Uber and America”
Highland Park gentrification response
Hat-tip to Curbed for linking to this really fascinating piece on Highland Park gentrification. Before I get into my problem with the article, I want to congratulate the author on what I think is a fair, reasonable account of the changes taking place in Highland Park. Now, to the problem. Here’s the money quote: “These [renter] … Continue reading “Highland Park gentrification response”
Problem solving
In our business, we are frequently confronted by fairly complex problems. A good example is the SCEP process, where you often get a long list of issues that needs to be addressed without clear guidance on how to address them. To make matters worse, many of these kinds of issues are related, so that you … Continue reading “Problem solving”
How I assign agents
When someone comes to me for help buying an apartment building, the first thing that happens is we have a phone conversation. During the talk, I give an overview of our process, then spend a bunch of time asking questions of the potential client, including: how much capital she has to deploy, what size deal … Continue reading “How I assign agents”
Fear the SCEP-Monster
Every 2-3 years, the Housing Department attempts to inspect every apartment in the city under the Systematic Code Enforcement Program (SCEP). The inspections are at least notionally intended to ensure that landlords are running clean, safe buildings. In practice, the standards of enforcement vary so widely as to be kind of a joke… I have been … Continue reading “Fear the SCEP-Monster”
The two economies
If you’re reading this, you probably don’t know about LA’s Other Economy. How do I know? Because you can read English, and the Other Economy is not, for the most part, English-speaking. What is the Other Economy? It: Comprises mainly immigrants and their American-born children Is conducted in Spanish, Chinese, Tagalog, Khmer, and other languages Is … Continue reading “The two economies”