Here’s a paraphrase of an email I got yesterday: “I’ve been working with another broker. I can’t seem to find any deals. Can you please give me some free advice about what I should buy.” I don’t mean to pick on the guy who sent it, but this kind of email drives us crazy. Why? We’ve worked long … Continue reading “Will we give free advice?”
Category: Brokerage
An appreciation of our team
Two of our agents are close to closing difficult deals right now. Both agents spent a ton of time with their respective clients, looking at who-kn0ws-how-many deals before finally honing in on these targets and getting them into contract. In escrow, both deals have had multiple issues with appraisals, lenders, etc. It’s looking like both deals … Continue reading “An appreciation of our team”
What happens when a sub-market gets hot
Here’s one of the irritating things that happen when a neighborhood gets hot: Amateurs jump in. Someone puts a good deal on the market. Amateurs, seeing the kind of rents we get but not how much it costs to get them, bid the price up. We lose the auction. The amateur wins the auction but fumbles the … Continue reading “What happens when a sub-market gets hot”
Hello agents!
It has recently come to my attention that many Los Angeles real estate agents read this blog. It’s not that surprising. After all, as we have discussed here many times, apartment deals, particularly in rent controlled areas like LA, are very, very different from single family or condo deals. And the multifamily training provided to … Continue reading “Hello agents!”
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”
There’s no substitute for hustle
In our business, there is a lot of money to be made. I personally know agents who have cleared north of $1MM in gross commissions in good years. I know a guy who owns one of the midsize brokerages in LA and I think he clears $5-10MM / year. Obviously, huge asset managers like Blackstone, etc. … Continue reading “There’s no substitute for hustle”
What makes us different
Have been reflecting on the difference between brokering at Adaptive and other, “normal” brokerages. In normal brokerage, you mainly represent sellers. Your job is to present your client’s property in the best possible light and then hope someone buys it, warts and all. Success is mainly about convincing a potential seller to sell and to … Continue reading “What makes us different”
A great real estate story
One of our agents just bought his first apartment building, it’s an awesome story, and I thought I’d share it with you. When David Brundige came to work with us a few years ago, I knew he was exceptionally smart and entrepreneurial, since we had gone to college together. On the other hand, he knew … Continue reading “A great real estate story”
Seeing the big picture
One of my agents is working with a client on an interesting deal and running into a problem. The building itself is great – big, recently built, non-rent control, in an improving area, fair price. The problem is that the current owners don’t have their act together. Missing leases, conflicting estoppels, deferred maintenance issues. None … Continue reading “Seeing the big picture”