Today, instead of writing a post from scratch, I answered the following question on Quora, a Q&A site that I like very much: Question: What are the pros and cons of crowd-sourcing real estate platforms like Fundrise or RealtyShares compared to traditional REITs? Can see the difference in projected returns but what makes them different … Continue reading “What’s the difference between investing in a crowd-funded deal and buying shares in a REIT?”
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A really interest personal essay on gang life
Regular readers know that criminality, in general, and gangs, in particular, are major interests of mine. It’s kind of unavoidable, when you manage buildings in gentrifying neighborhoods. If, like me, you’re interested in why people join gangs and how gang life has changed in LA over time, take a look at this personal essay in … Continue reading “A really interest personal essay on gang life”
Reminder about why I write this
Pretty much every day, I’m confronted by the following question: How much is too much to share on the blog? The reasons for not sharing are pretty obvious: We have tons of competitors, many of whom read this blog and (try to) copy what we do. Within reason, I don’t mind this… it’s a free … Continue reading “Reminder about why I write this”
4424 Burns is done
Yet another renovation project. This one is walking distance to Virgil Village / Sunset Junction. The building is a mix of 3 bed / 2 bath and 1 bed / 1 bath units. The 3/2s, pictured below, are really impressive. I think they’re the best 3 beds we’ve ever done… great ceiling height, great windows, all the … Continue reading “4424 Burns is done”
Thinking about the components of value
Lately, have been thinking about what we mean when we say, for example, that we’re earning a 7% unlevered return on a property. The math is pretty obvious: Say we invest $2MM in a property between acquisition and renovation (assume this is cash and that there is no mortgage). If we generate $140k / year … Continue reading “Thinking about the components of value”
4234 Lockwood is done
This one was an absolute bear. But now it’s done and I think you’ll agree it looks dope. It’s also right in Virgil Village, a short walk from Sunset Junction… so, near enough to the action without being too crazy. The building is a mix of 1 bed, 2 bed, and 3 bed units. We … Continue reading “4234 Lockwood is done”
Why work with Adaptive
Met with a potential new agent for Adaptive yesterday who asked an interesting question: What differentiates Adaptive from other brokerages that he might join? The answer is actually pretty simple: Unlike pretty much every other brokerage I can think of, Adaptive specializes in advising buyers of investment property (as opposed to sellers). Representing sellers is definitely … Continue reading “Why work with Adaptive”
Passing on some great management advice
Sorry for the limited posting last week; I was up in SF at the EisnerAmper Real Estate Private Equity Conference. At the conference, heard a talk about building an “excellent, enduring organization”, which is obviously what we are trying to do here at Adaptive. The talk included several good pieces of advice, but one really stood … Continue reading “Passing on some great management advice”
My random meeting policy pays off
Had a really interesting meeting yesterday that opened my eyes to a large new market. The meeting was with someone who came across our company via our ads for apartments, found the blog, and reached out. Regular readers know I’ll take pretty much any meeting, so long as the person is willing to come to … Continue reading “My random meeting policy pays off”
Silver Lake rents and operating margins
Spent some time this morning looking at rents in Silver Lake. When we started in this business back in 2008, a really nice 1 bed in Silver Lake was around $1500. Today, a similar apartment goes for $2200-2300. That’s an increase of ~50% in eight years… or around 5-5.5% / year (inclusive of compounding). But that’s … Continue reading “Silver Lake rents and operating margins”