One of our key advantages in this business is our ability to accurately forecast rents for renovated units. We’ve previously discussed the importance of this skill: It’s understanding the rents that allows you to properly underwrite deals. We are able to do such accurate forecasting because we are constantly leasing renovated units in the neighborhoods … Continue reading “How we forecast the rents”
Blog
Introduction to Phase 1 environmental reports
Some of the money we’re deploying on behalf of an investor right now comes out of a 1031 exchange. For those who don’t know, a 1031 is a way to avoid paying capital gains on sale of an investment property by immediately purchasing another property with your sale proceeds. Arranging a 1031 exchange requires the help … Continue reading “Introduction to Phase 1 environmental reports”
Why I love my job
One of the best things about my job is that it forces me to learn new things all the time. Today, I need to review a proposed Tenants-in-Common (“TIC”) agreement that will govern the relationship between two entities which will jointly own a property we intend to renovate. I have never seen a TIC agreement … Continue reading “Why I love my job”
Another trip to SF and why I hate setbacks
Just got back from a trip to NorCal, during which I drove through San Francisco twice. Could not stop staring at the buildings, which are generally built all the way to the lot lines in the front and on the sides of the parcels. It’s just shocking how much better a city looks with no … Continue reading “Another trip to SF and why I hate setbacks”
Using a little leverage
Regular readers know I’m not a big fan of leverage. Yes, it has the ability to dramatically improve your results in upside scenarios. But I got started in this business during a total wipe-out and I’m determined not to expose myself or my investors to any real risk of losing properties in the event of … Continue reading “Using a little leverage”
How we would enter a new city
Have been thinking about what it would take for us to learn a new city. Other people do this by reviewing research reports and then visiting a few times for broker tours. That is not how we would do it. We would start with research in order to narrow down the choices to those cities … Continue reading “How we would enter a new city”
Keep chopping wood
We basically do the same deal over and over again. We find some screwed-up building in an improving neighborhood, we figure out how to renovate it, and then we lease and manage it. Because the deals are so similar, it’s easy to start to get bored. After all, smart people generally appreciate novelty, learning, etc. … Continue reading “Keep chopping wood”
A little taster from the front lines of LA’s parking wars
If you’re wondering why we have a shortage of housing in Los Angeles, I’m here to shed a little light. We recently bought a duplex with the plan of adding a second story and two more units. This is exactly the type of deal the city should love: We’re adding additional housing to a neighborhood … Continue reading “A little taster from the front lines of LA’s parking wars”
At RealShare
Am spending most of the day today at RealShare, the big real estate conference in Century City. If you’re attending, too, come say hello. I’ll be the guy with the inappropriately shaggy hair and beard (because I’m not selling anything).
A post about habits
When I was getting started, I read every real estate book I could get my hands on. Most of them were pretty dumb. A few were helpful. One, the name of which escapes me, contained some advice which I found really odd at the time. There was an entire chapter devoted to the importance of regular … Continue reading “A post about habits”