One of the under-appreciated qualities that go into doing what we do is judgement. Almost every project brings with it unanticipated problems, from the trivial to the potentially severe. At this point, I think it’s fair to see that we’ve seen the majority of these problems before and know the solutions. But, even now, after … Continue reading “Why it all comes back to judgement”
Blog
Why I’m no longer a seller
Back when we started, Jon and I needed to sell renovated buildings. The reason was pretty simple: We needed the dough. When you’re in the money management business, you generally don’t see much in the way of money yourself until you make your partners money. They don’t take it on faith; they want cold hard … Continue reading “Why I’m no longer a seller”
Dealing with contingency removal anxiety
Yesterday, we removed contingencies on the second deal for Adaptive Realty Fund 3. No matter how many times I do this, I still get a major hit of anxiety during the days leading up to the contingency removal. I obsessively check and re-check the diligence. I harass the contractors about their bids (Is this included? … Continue reading “Dealing with contingency removal anxiety”
What I want to buy
I’m always looking to buy screwed up buildings in interesting areas for reasonable prices. What does that mean? Well, by screwed up, I mean buildings with: Below market rents Deferred maintenance Obsolete layouts Because I intend to renovate these buildings, I don’t care that much about the existing income or expenses. Instead, I care about … Continue reading “What I want to buy”
You can’t juke the operating expenses
There’s another broker with whom I’m acquainted who always seems to have amazing deals to show her clients. Every week or so, I see her pitching deals with 8-10% cash on cash returns. Eventually, I started to get curious. After all, this is a tough market. I have every advantage in the world, and it’s not easy for … Continue reading “You can’t juke the operating expenses”
On being a pain in the ass
When you get into a real estate deal, either as a buyer or as a broker, there’s tremendous inertia pushing towards closing. Escrow requests the EMD, inspections get scheduled, disclosures get signed, the contingency period ticks away. Everyone in the business likes it to be this way, because almost everyone, from the brokers to the … Continue reading “On being a pain in the ass”
Welcome to the new Kagans Blog
As you can see, we’ve renovated the site. Why? Because I want more people to sign up for my mailing list (you can sign up here). The mailing list is critical to our business, because that’s where many of our brokerage clients and equity investors come from. In order to raise the conversion rate (the percentage … Continue reading “Welcome to the new Kagans Blog”
An intriguing article about murder in LA
The LA Times has an interesting article today about the release of a study recently completed on the nature of homicide in LA. Characteristically, the Times buries the ledes: Of the 260 homicides in LA during 2014, 62% of all homicides in LA are gang-related. While gangsters occasionally kill non-gangsters, the vast majority of gang-related killings … Continue reading “An intriguing article about murder in LA”
And… Metro backed down
Per Curbed, Metro backed down on their misguided plan to build generic medical offices in Boyle Heights’ Mariachi Plaza. However, whereas Curbed is presenting the change of plans as a win for anti-gentrification forces, I think the jury is still very much out. Given that BH residents have been pretty happy to have affordable housing … Continue reading “And… Metro backed down”
From whom should I borrow?
(Sorry for the obnoxious headline… my inner grammarian wouldn’t allow me to end a headline with a preposition.) Had a friend call me today asking that simple question. Turns out a broker has been pushing her to use a particular loan broker and my friend wanted to know if that was good advice or not. So, without … Continue reading “From whom should I borrow?”