Years ago, when we were still working on the Better Dwellings portfolio, before we started Adaptive, I remember having a conversation which I now realize contributed to my bias towards holding real estate permanently. Can’t remember who it was, but the person told me about checks he receives each quarter. The source of the funds? … Continue reading “Connecting the generations with real estate”
Category: Buying
A surprising admission from Mr. Fund of Funds
Was at a terrible conference early this week, when I heard something amazing. It came from a guy who runs a fund that invests in other managers’ private equity funds… in other words, a “fund-of-funds”. Someone in the audience, presumably an aspiring fund manager, asked Mr. Fund-of-Funds how much of a co-invest he wants to … Continue reading “A surprising admission from Mr. Fund of Funds”
Why we no longer announce acquisitions
Was browsing the LinkedIn newsfeed yesterday and came across a video a guy had posted of his latest acquisition, which included the name of the neighborhood in which it is located. The video had a ton of likes and comments (mostly from brokers) and I admit to feeling a bit jealous. (Side note: If you … Continue reading “Why we no longer announce acquisitions”
Telling our story (again)
I remember reading one time that being the leader of an organization means repeating that organization’s story over and over and over again, to anyone willing to listen. Lately, I’ve found myself telling all kinds of people what we’re about. So, I figured I’d repeat it here, for those of you willing to listen. Adaptive: … Continue reading “Telling our story (again)”
The “How much are you putting in” Test
Whenever I’m out raising capital for an opportunity, I get asked the following question: How much of your own money are you putting in? I understand why people ask. They are trying to determine how much conviction I have in the opportunity. The more I put in, the more conviction I have that this is … Continue reading “The “How much are you putting in” Test”
Why we focus on unlevered yield
Had someone write in and ask me why we focus on unlevered yield when we look at deals. To be clear, unlevered yield is calculated by dividing the forecast annual net operating income from a property by the cost total cost of buying and renovating it… in other words, treating the project like it will … Continue reading “Why we focus on unlevered yield”
A great capital partner
Yesterday, a long-time capital partner and I finalized the operating agreement for the entity for a new deal we’re doing and, because the process unfolded in precisely the way I like to do business, I want to highlight it here: We brought the deal to this partner about a month ago, after we had inspected … Continue reading “A great capital partner”
Cranking the machine back up
Acquisitions have been slow at Adaptive over the past few months. And it’s not by choice… prices in our core neighborhoods in 2018 have generally run way out ahead of rent growth, taking our forecast unlevered yields down to levels we don’t find appealing. However, recently, we have identified a few areas where the equation … Continue reading “Cranking the machine back up”
Why we’re sticking to our knitting
Regularly get asked the following questions: Are you planning to venture out to other cities? Start doing other product types (office, retail, etc.)? The answer to both is that I would love to branch out. Aside from the intellectual stimulation that comes from learning new things, expanding the pool of potential projects would allow us … Continue reading “Why we’re sticking to our knitting”
Finishing up another one
We’re just finishing a 6 unit deal in an area where we’ve done a ton of business, and thought you guys would like to see pics. The ads went up this past Monday (so, seven days ago) and already 5 of the 6 units are spoken for. Think the unlevered yield on this one is … Continue reading “Finishing up another one”