Answered this question on Quora yesterday and thought it would be interesting to re-post here: The key to understanding “value” is to separate it from “price”. “Price” is the amount of a given currency at which a buyer is willing to buy or a seller is willing to sell (sometimes, those numbers overlap, in which … Continue reading “What is the difference between “price” and “value”?”
Blog
Getting sick of crime again
In theory, I am a fan of reducing the number of people in prison. In practice, I am getting pretty sick and tired of having tenants’ cars and mailboxes broken into. These are not crimes of impulse, like seeing a nice bike unlocked and riding away on it. If you break a car window or … Continue reading “Getting sick of crime again”
There are no bad assets
I love Quora, the question and answer site. But, multiple times per day, people post questions like “Is buying an apartment building a good investment?” or “Should I buy stock?” or whatever. These are dumb questions, because whether an asset is good to buy is 100% determined by the price. For example: Imagine a run-down buildingon a … Continue reading “There are no bad assets”
Thinking about the next recession
One of the key insights in Howard Mark’s book, The Most Important Thing, which I love, is that you can’t predict a recession with any certainty. All you can do is (i) know that the pendulum always swings back; and (ii) observe where the pendulum is currently. It’s pretty clear that the pendulum is currently … Continue reading “Thinking about the next recession”
The forecast on our latest deal
As the economy has continued to improve, both nationally and here in LA, it has become harder and harder to find deals worth doing. That said, it’s definitely not impossible. Today, we are closing on a deal with the following characteristics: Currently a vacant triplex Paying $220 / sq ft Suitable for conversion into a … Continue reading “The forecast on our latest deal”
Another new fourplex
Just finished another 4plex. Think these are among the best 3 bed apartments we’ve ever done.
Why we love (our) property management business
A lot of people in real estate HATE residential property management. Why? Tenants understandably get pretty upset when they’re paying good money for an apartment and things break. And, on the flip side, no one calls up her landlord when things are going great and says “Hey! Thanks for my apartment! It’s wonderful!” So the business … Continue reading “Why we love (our) property management business”
Internship opportunity
We’re looking for a smart, motivated intern to come help us and, in the process, learn about the business. Tasks will include everything from filing, to arranging deliveries of construction materials, to reviewing potential acquisition opportunities, to tagging along for meetings with architects, contractors, leasing agents, etc. The harder you work and the more energy … Continue reading “Internship opportunity”
Responses to increasing rents
Here’s how housing works in LA: Lots of people want to come here because it’s beautiful and there is economic opportunity The population increases Insanely restrictive zoning prevents developers from building enough housing to accommodate population growth Responding to pressure from tenants, the city controls rents on most units (via the RSO) New-comers and residents … Continue reading “Responses to increasing rents”
Why I’m voting against Measure S and you should, too
If you’ve been driving around LA for the past few months, you’ve seen tons of “Yes on S” advertising. Want to take a moment today to explain why I think Measure S is: Bad for the city; but Great for me Before getting into the argument, let’s review what Measure S actually is. Among other … Continue reading “Why I’m voting against Measure S and you should, too”