Adaptive finally has an Instagram account with tons of pics of our ongoing renovation projects. The tech-savvy among you can follow @adaptiverealty for on-going updates. The less tech-savvy (including, for example, me), can check out the pics here: instagram.com/adaptiverealty Going forward, we’re going to document all of our on-going projects (and there are a ton!) … Continue reading “See awesome construction pics”
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Beware of setbacks!
Apologies, in advance, for a fairly technical piece, but this is very important information for anyone doing remodeling in LA. If you’re rehabbing a property, you need to be extremely careful about touching anything located in any setbacks. What do I mean by setbacks? They are the parts of any lot in which the city … Continue reading “Beware of setbacks!”
Some stats on our business
Jon and I are hiring a photographer to go back and document all of the buildings we’ve renovated. She asked for a list, so I went back through my records to produce one. Thought you would be interested in the results of my research: Completed gut-renovations on 25 buildings totaling 156 units Renovations in progress … Continue reading “Some stats on our business”
My thoughts on the anti-gentrification march on York this weekend
So this weekend a bunch of residents held an anti-gentrification march on York Blvd. in Highland Park. Here’s a description from the Eastsider: “A group of anti-gentrification protestors – some of them masked and waving banners – paraded down the sidewalks of York Boulevard tonight, taping “Eviction Notices” on new businesses…” Neither I nor anyone in … Continue reading “My thoughts on the anti-gentrification march on York this weekend”
Are there any good deals out there?
Well, I’ve written 4-5 offers this week. And I just stumbled across a deal that’s going to end up being somewhere between an 8.5-9.5% unlevered yield (eg cap). Of course, these things aren’t just falling off trees. You need some combination of superior local knowledge, skill / experience, and sufficient capital. Inventory is definitely tight, … Continue reading “Are there any good deals out there?”
Broker lunches
Every six months or so, I set up a round of lunches with relevant brokers and agents. Who are relevant brokers? Well, they’re the ones who sell the deals that we want to buy… beat-up properties in interesting areas that are priced (semi-)fairly. Why do I do these lunches? The idea is to build trust … Continue reading “Broker lunches”
The problem with banks
I’ve been working on a simple bridge loan for a month. We bought the property all-cash and are capitalized with additional cash to fund the rehab (which has already begun). We paid $2,051,000 for the building and intend to spend another $700k renovating. I have asked a bank to provide the following loan: $1.2MM 5% … Continue reading “The problem with banks”
Don’t be an ostrich
In our business, shit happens. That’s just the way it is. Tenants try to short you on rent. Contractors try to extort money through bogus change-orders. City inspectors call you out for things you know are fine. Buyers try to chip price. Sellers lie about their rent rolls. And on and on and on. When … Continue reading “Don’t be an ostrich”
Avoiding a pretty painful “oops”
A reader wrote in to ask me a question about yesterday’s piece, which argued for refinancing and holding, rather than selling, completed repositioning projects. The question: “Only thing I don’t understand is why not refi on a LTV more than 60% to get back all of your original 2million dollars.” It’s a reasonable question. After … Continue reading “Avoiding a pretty painful “oops””
To sell or not to sell
One of the problems a beginning money manager has is deciding whether to sell or hold completed projects. To understand dilemma, you first need to understand what we’re generally left with when a project is completed: Fully renovated building with all new plumbing, electric, etc. High quality tenants on modern leases with good security deposits An … Continue reading “To sell or not to sell”