We bought our first building in LA, 117 N Reno St., in early 2008. Yesterday, our wonderful bookkeeper, Kris, finalized some projections for the Adaptive group of companies for 2014. We’re nowhere near where we aim to be, but we’re doing well enough that I spent some time last night reflecting on how far I’ve … Continue reading “A look back”
Author: Moses Kagan
Mid City Neighborhood Council
Went to the Mid-City Neighborhood Council meeting last night at the invitation of my friend Michael Sonntag, the president of the council. Was my first time attending one of these meetings, so didn’t know what to expect. Two contradictory thoughts on the meeting: 1. The business of local government is small-bore in the extreme. What … Continue reading “Mid City Neighborhood Council”
Another way brokers screw up
Wasted a ton of time this weekend due to broker error. This genius, who will remain nameless, listed his property for sale on the relevant listing databases. The property is odd, but it has a ton of potential if you change its use. We spent a bunch of time running numbers and dreaming up a … Continue reading “Another way brokers screw up”
More on the ‘burbs
Regular readers know I’m not exactly a big fan of the suburbs. My chief complaint is that the lack of density pretty much guarantees that municipalities will not be able to fund upkeep of the infrastructure, because there are too few people / businesses per mile of road / sewer pipe / water pipe / … Continue reading “More on the ‘burbs”
Beware the East Hollywood Flood Zone
Seriously, it exists, despite the fact that East Hollywood is really far from any bodies of water. Because the Army Corps of Engineers created a flood zone around the intersection of Santa Monica and Hoover, banks will require that properties in the area carry flood insurance during the time the property is mortgaged. The problem … Continue reading “Beware the East Hollywood Flood Zone”
A deal I can’t do
I’m looking at a deal right now that doesn’t work for my funds because there’s not enough margin in it to flip or to earn the kind of yields that our investors expect. But it’s a reasonable deal for an individual willing to roll his/her sleeves up and do some work. How can this be? … Continue reading “A deal I can’t do”
The negative consequences of limiting property taxes
The NY Times has an interesting piece today on cities trying to help long-time homeowners whose property taxes are going up as a result of gentrification. Here’s the money quote: “The initiatives, planned or underway in Boston, Philadelphia, Washington, Pittsburgh and other cities, are centered on reducing or freezing property taxes for such homeowners in … Continue reading “The negative consequences of limiting property taxes”
How to screw up a huge development project
Word comes today from the Eastsider that the Silver Lake Neighborhood Council has just approved the Sunset Gateway project on the eastern edge of Echo Park. Regular readers know that I’m a big fan of dense, in-fill development. And the part of Sunset on which this project is sited is particularly grim and in need … Continue reading “How to screw up a huge development project”
How I think about LA real estate
A contact just sent me this link to an excerpt from Warren Buffett’s most recent Berkshire Hathaway shareholder letter. Buffett’s approach is pretty much exactly how I think about multifamily real estate in improving parts of LA: Pay a reasonable price, such that the yield in year 1 is acceptable Don’t put yourself in a … Continue reading “How I think about LA real estate”
Two pet peeves in business journalism
Sorry, have to vent: 1. “So and so grew the value of the business from $100MM in 1985 to $500MM today”. That sounds really impressive, but it’s only a roughly 5.9% annual growth rate with compounding. Any time a journalist quotes two numbers divided by a period of time, s/he should automatically give you the … Continue reading “Two pet peeves in business journalism”