Over the past few days, we’ve been discussing the rising interest rate environment and how it is changing the real estate market. We spent a bunch of time on a strategy investors should avoid. Today, we’re going to focus on strategies that make sense in an environment where: The economy is improving; and Interest rates are … Continue reading “How to act in a rising interest rate environment”
Author: Moses Kagan
How not to act in a rising interest rate environment
We’re living in a world of rising interest rates, which are already fundamentally changing the real estate market. As discussed yesterday, as interest rates rise, prices should fall, all other things being equal. That’s because more expensive debt means reduced cashflow and lower returns at a given price. But, all things are not equal. In … Continue reading “How not to act in a rising interest rate environment”
In the midst of a market disjunction
Had breakfast with a really experienced broker this morning, a guy who I think of as kind of a mentor. He started in real estate in the early 1980s and has bought and sold an unbelievable number of properties in the Echo Park area since then. I complained to him that the market feels pretty weird … Continue reading “In the midst of a market disjunction”
Micro-units are coming
Just ran across this piece on yet another micro-apartment complex going up in Santa Monica, and I’m thrilled. In case you haven’t run across this concept before: Micro-apartments are very small apartments, in this case averaging 375 sq ft. For reference, a normal studio apartment in a 1920s building is probably something like 400 sq … Continue reading “Micro-units are coming”
As long as…
…people do things like this: http://losangeles.craigslist.org/lac/apa/3920818867.html …there will be work for Adaptive to do. Check out the remodeling choices (uh-oh). And the location (great). And now the asking rent (low). When I see something like this, I feel like this guy does in this situation:
Whole lotta building going on…
In our areas (Silver Lake / Echo Park / etc.), there are tons of small lot subdivision projects in the works. Off the top of my head, I can think of at least four projects going in right now, and there are definitely more that I’m forgetting. So, the question for all of us apartment people, is: … Continue reading “Whole lotta building going on…”
How increasing interest rates are changing the market
Had an amazing thing happen a few days ago: One of my agents was representing a buyer in a deal. When the buyer saw how much interest rates had moved in the last week or so, he changed his mind about the deal. In an effort to try to keep the deal together, my agent … Continue reading “How increasing interest rates are changing the market”
The last 4 weeks
We brokered and / or acquired just under $7.8MM worth of Los Angeles apartment deals in the last four weeks, and there’s a lot more to come. We’ve done small deals (duplexes in Silver Lake and Echo Park), big deals (a 16 unit building in Highland Park), and tons of stuff in-between. We’ve still closing … Continue reading “The last 4 weeks”
Can we see the plans? No.
You might think that, somewhere, the City of Los Angeles has plans for every structure erected in the city, at least since modern building permits came into use in the 1910s. You might think that, if you’re planning to renovate an old building, you can go down to some records room, pull the plans, and … Continue reading “Can we see the plans? No.”
Some pics of three of our projects
Thought you might like to see what 1920s buildings look like when you rip them open. When I say we gut our projects, I mean it.