And… we’re back. As you know, we’re in the process of “rehabbing” a 4plex in Echo Park right now. I say “rehabbing”, because it’s effectively new construction, as you will see below. When we started this project, I was mentally prepared to treat it like a standard rehab deal, except with slightly more risk and … Continue reading “Checking in on our “rehab” deal”
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Vacation
Am headed to Costa Rica for vacation this week, so posting will be light (again). The good news is that we’ve got an interesting ground-up deal in contract and are circling another interesting repositioning play. You knew I couldn’t actually not work for a week, right?
Genesis of a great deal
Today, we’re closing on a 4plex that warrants some special attention. It’s in a good neighborhood, it’s ~4700 sq ft, and we’re buying it for $810k, or $172 / sq ft. That’s a great deal in a neighborhood where the cheapest comp I can find in the last six months sold for $300 / sq. … Continue reading “Genesis of a great deal”
A short post day
Am heading down to Irvine with Jon to participate in a panel on mid-market acquisitions. So, in lieu of a longer post, here’s a group pic from the Adaptive holiday party last night… we’ve come a long way in three years!
What we’re doing today
Apologies for the lack of a post yesterday and for the short one today. Jon and I are headed out of town to take a look at a deal we might buy. Will I tell you where we’re going? No. Suffice it to say that, when we see a deal for $100/sq ft in an … Continue reading “What we’re doing today”
Why developers prefer to build luxury apartments
Here’s a question that’s been popping up all over the place: Why do developers only build apartments for the rich? The answer, as with most things in our business, is in the math. Imagine you can buy enough land to build 10 units for $1MM, or $100,000 per unit. Let’s say you have two options: … Continue reading “Why developers prefer to build luxury apartments”
Some things to consider BEFORE buying a condo
Buying a condo is about 1000x easier than buying an apartment building. Among the things you don’t have to worry about are: foundation, roof, rent control tenants, environmental issues, etc. But there are still some pretty important things to consider, things about which the vast (and I mean VAST) majority of agents know nothing. 1. … Continue reading “Some things to consider BEFORE buying a condo”
Should I buy a condo as an investment?
Had two conversations with people interested in buying condos for investment purposes yesterday, so figured I’d repeat what I told them here. The first thing to understand about buying condos (and single family homes) in Los Angeles right now is that doing so is not really an investment. Why? Because prices are so high relative … Continue reading “Should I buy a condo as an investment?”
Speaking at the Southern California Apartment Summit next week
Just agreed to join a panel at the Southern California Apartment Summit taking place in Irvine on Thursday, December 17. Here’s a link to the conference website. My panel will be about the state of the “middle market”, eg non-institutional scale properties. Think this panel and, indeed, the whole conference, will be of interest to readers … Continue reading “Speaking at the Southern California Apartment Summit next week”
A little bit of government waste
Here’s a wonderful example of Los Angeles city government at work. The city wants to close a disused pedestrian tunnel under Sunset in Silver Lake which has become a cesspool of graffiti, litter, etc. LA anticipates the cost of doing so will be $160,000. I guarantee a private contractor could close the thing up for $80k … Continue reading “A little bit of government waste”