Thought I’d share numbers for a deal we just stabilized. Not going to share the address, because I don’t want to tip anyone off re neighborhoods, etc. Anyway, here goes: Acquired in Spring 2015 Stabilized approx. 13 months later All in for ~$2.37MM Stabilized rent roll of $262k Implied GRM of 9x (!) Forecast NOI of $190k … Continue reading “Anatomy of a homerun”
Blog
Brexit is making Mr. Market nuts
Am not a huge stock market guy by any means. The vast majority (I mean, vast – like 98% or something) of my personal net worth is in LA real estate. Still, I am interested in the public equity markets because they’re fascinating. And today’s Brexit-related market gyrations put me in mind of Benjamin Graham’s famous … Continue reading “Brexit is making Mr. Market nuts”
Trusting the process
One of my agents called me yesterday to see if I had any ideas to help her. She’s got a great client who has been making strong offers on single family homes and getting outbid. Everyone is frustrated. As it happens, my parents are in the market for a home on the Eastside (working with … Continue reading “Trusting the process”
Some mildly annoying numbers
Just finishing a 4plex in a really cool, up-and-coming neighborhood that we renovated on behalf of an outside investor. Was reviewing the original pro forma and revising in light of what I believe the rents will be… and got an annoying surprise. Based on the original pro forma, this was not a deal that we … Continue reading “Some mildly annoying numbers”
Zoning and homelessness
Regular readers know homeless is a major interest / concern of mine. After all, our business model ends up raising rents and that unavoidably impacts housing affordability and, hence, homelessness. So it is with great interest that I am following the debate between LA County and Gov. Brown regarding whether or not the homeless situation … Continue reading “Zoning and homelessness”
Appreciating Bloomberg’s Q&A with Henry Kravitz
It’s rare I read something in the business press that is directly relevant to me. After all, the number of people trying to build asset management businesses is vanishingly small; so small that it’s rarely worth anyone’s time to cater to us. So, it was with great interest that I read Bloomberg’s interview with Henry Kravitz, … Continue reading “Appreciating Bloomberg’s Q&A with Henry Kravitz”
Why we don’t sell
Pretty much every time I speak with a broker who is pitching me a deal to buy, she asks me if I intend to flip the deal when I’m done renovating. The reason for the question is obvious: There’s kind of a custom where, if a broker gets you a deal, you’re expected to hire … Continue reading “Why we don’t sell”
Why people pay high prices
Had someone yesterday email me asking why I think people are paying insane prices for Los Angeles apartment buildings. By insane, I mean 15-19x annual rents. At those prices, there’s basically no cashflow; in fact, at the upper end of the range, it’s likely you’ll pay to own the asset each month (instead of the … Continue reading “Why people pay high prices”
Adaptive to Craigslist: Take our money, please
You’ll rarely hear us asking a company to take our money. But we’re doing it today. As you probably know, we’ve been hit by a rash of scammers posting fake Adaptive ads, hoping to steal money from naive potential renters. This scam works because the cost of customer acquisition is basically nil. All the crooks need to … Continue reading “Adaptive to Craigslist: Take our money, please”
Beware fake Adaptive ads on Craigslist
Recently, we’ve had a little burst of scammers copying our rental ads and using them to rip people off. I suppose on some level, this is flattering… they probably feel like the pics of our units will get people fired up enough to wire money to Nigeria or where-ever the hell the scammer live. But I’m … Continue reading “Beware fake Adaptive ads on Craigslist”