When I first started buying buildings, I needed a quick and dirty way to estimate operating expenses. I hadn’t owned any buildings long enough to have historical data upon which to base assumptions. At the time, I was using an accountant who knew just enough about real estate to be truly dangerous. I asked him … Continue reading “How following one dumb rule of thumb cost me thousands of dollars”
Author: Moses Kagan
Amateur hour
Just saw a flip deal go up on the MLS that’s driving me crazy right now. The flipper bought it six months ago for $725k. He relocated one tenant, superficially renovated two units, (presumably) fixed a big foundation problem, and painted it. Figure he’s all-in for $825k or so. Now it’s listed for $899,000, presumably … Continue reading “Amateur hour”
A curious difference between LA and SF
Lucy and the boys and I spent the weekend in SF with one of my best friends and his family. Because I’m me, I spent a bunch of that time looking at buildings. As I was admiring the tall, thin, ornate homes (which must date to the 1890s-1920s), I had a startling realization: Those properties … Continue reading “A curious difference between LA and SF”
The relationship between foreclosure and the availability of credit
As a result of the huge number of foreclosures across the country over the past five years, numerous states and the federal government have created all kinds of road-blocks to foreclosing on a delinquent borrower. This is feel-good stuff… no one likes to hear about families being kicked out of their homes and politicians absolutely … Continue reading “The relationship between foreclosure and the availability of credit”
When to ignore the cap rate
Have been looking at listings for mid-size apartment buildings today and ignoring the cap rates. Why? Isn’t cap rate the thing you should care about with investment real estate? Not when you’re working with brokers who don’t have a good grasp on calculating cap rates. Here’s an example: Looking at a 10 unit deal priced … Continue reading “When to ignore the cap rate”
2514 London is sold
Just sold the second of our Fund 1 deals: 2514 London St., a fourplex just south of the 101 in Westlake / HiFi This one was pretty good, though not nearly as good as our 1947 Clinton deal. The numbers: In for around $850k Took in cash of approx. $20k during ownership Sold for $1,150,000 … Continue reading “2514 London is sold”
It’s happening again…
Just took the whole team over to one of our projects to take a look at progress and opine on the finishes. We’re getting close… have a look: We’re going to have four beautiful 2 bed / 1 bath bungalows with private yards, parking, finished studio/storage spaces, etc. Should be ready to rent by sometime … Continue reading “It’s happening again…”
Interesting deal
I’m looking at an interesting deal for someone to put out roughly $300k in cash. There’s not enough pop to make it worthwhile for one of our funds. But it’s a reasonable way to get a 6-7% / year return with a bunch of upside as the neighborhood improves (hint: it will). If you’re interested, … Continue reading “Interesting deal”
Revitalizing urban areas
Fred Wilson, one of the most successful venture capitalists on the planet, recently wrote a blog post regarding efforts to revitalize urban areas. Thought it might be fun to take a look at his argument and see how it matches up with the situation on the ground here in LA. The money lines: “I’ve been … Continue reading “Revitalizing urban areas”
Housing for the poor
Yesterday’s NY Times Magazine had a really interesting piece on investors who buy and fix up mobile home parks. In a somewhat surprising twist, the reporter seemed genuinely to respect the investors who are, after all, providing pretty decent accommodation to people at absolutely the lowest possible rung of the housing ladder. For investors, I … Continue reading “Housing for the poor”