Learning from the crowd-funding sites

In general, I dislike real estate crowd-funding. My beef is that the lack of connection between the sponsor and the faceless equity providers makes it easy, psychologically, for the sponsor to justify to himself screwing over the investors. That said, RECF sites do provide a very valuable service to new investors and sponsors: They have … Continue reading “Learning from the crowd-funding sites”

Announcing the launch of Hyperion Property Management

At Adaptive, we’re always looking for ways to serve more partners, whether those partners are investors, property owners or tenants. We’ve noticed recently that more and more owners of single family homes on the Eastside are choosing to rent those homes out, rather than sell them, once they’re ready to move. This makes sense. The … Continue reading “Announcing the launch of Hyperion Property Management”

One way syndicators con investors

Want to take moment to explain and decry a move I see a lot of syndicators making (particularly on crowd-funded deals): Making distributions using investor capital, rather than free cashflow. Heres’ where the problem comes from: Syndicators need capital from investors. Investors generally want both regular distributions AND high forecast IRRs. It’s a seller’s market … Continue reading “One way syndicators con investors”

Learning from Stephen Schwarzman (again)

Just finished Stephen Schwarzman’s new book What it Takes, which is a kind of a combination memoir and business advice book. Regular readers know I idolize Schwarzman, who founded Blackstone and built it into, by far, the largest manager of alternative assets in the world. As one of the co-founders of a tiny speck of an alternative … Continue reading “Learning from Stephen Schwarzman (again)”

The surreal experience of turning down capital

Last week, I had three different, current investors separately ask me if I could take more of their capital. Sadly, right now, I can’t. While we’re deploying a fund, we’re fiduciaries for that fund, so I’m not going to take any capital for rivalrous deals (5+ units, LA County). And, while I can see some … Continue reading “The surreal experience of turning down capital”

Businesses to avoid: Remote, single-family home rentals

Was just reminded by a Curbed article about a mind-bogglingly stupid trend in real estate investment and figured I’d share why I think it’s so dumb. Here’s the deal: Many people working in big, coastal cities feel locked out of the property market, both for owner-occupancy and also for investment Online platforms have sprung up … Continue reading “Businesses to avoid: Remote, single-family home rentals”