I spend a lot of my time kind of aimlessly drifting. It’s pretty weird that I do this; I think most business people are much more focused than I am on a day-to-day basis. What I do is read a whole bunch of stuff and talk to people. I’m not necessarily specifically looking for an … Continue reading “The gestation of an idea”
Category: Building Adaptive
Ballpark returns
Had an interesting conversation today with a guy looking at building condos / small lot. One of the questions he had was what kind of returns a developer can expect. I’m far from an expert on ground up, but I’ve run the numbers on a lot of projects. Right now, here’s where I think you … Continue reading “Ballpark returns”
Concentration vs. diversification
One of the interesting issues with managing other people’s money is having to decide how exactly to allocate that money among projects. At any given fund size, you need to decide whether you should do a small number of big deals or a large number of small deals. All the theory points toward diversifying. After … Continue reading “Concentration vs. diversification”
See awesome construction pics
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”
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”
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”
Describing what we do
Have been doing some thinking about how, exactly, to explain how Adaptive helps clients deploy capital in the multifamily space. Regular readers know we do bunch of different things, including: Managing real estate investments (via discretionary funds and one-off projects) Fee-for-service development (where we get paid cash to help investors buy and rehab their own properties) … Continue reading “Describing what we do”
My current catch-22
There are some deals right now that: Aren’t right for our current fund (because the near-term returns aren’t high enough), but I want to buy (because I think they have a lot of potential down the road) One obvious solution to this problem would be to buy the deals with non-fund money, either my own … Continue reading “My current catch-22”
Why I talk myself out of commissions
Recently, have found myself telling a lot of people not to buy real estate. Weird, right? It’s not that I don’t think people should own apartment buildings. They absolutely should, for a whole host of reasons. But the market is pretty hot right now and it’s easy to make a bad deal. I don’t worry about … Continue reading “Why I talk myself out of commissions”