That’s basically what we do all day. What do I mean? Well, we’re looking for mismanaged, run-down, incorrectly-priced assets for ourselves or our clients to buy. Very often, the processes we have to navigate to secure these screw-up assets are, to put it mildly, “non-standard”. This ain’t the kind of brokering they teach down at your friendly … Continue reading “Wading through shit”
Category: Buying
Am I a principal or a broker?
I get this question a ton, usually from brokers who are interested in figuring out a way to take both sides of the commission (by representing both the buyer and the seller). For the record, here’s my answer: 1. If you bring me a deal which is “off-market”, in the sense that it has not … Continue reading “Am I a principal or a broker?”
Are there any deals out there?
In a word: “Yes”. I wrote two offers yesterday and have been writing on a pace of roughly five / week for months. We’re helping a client close one deal on Friday and another the following Friday. We’re in escrow with a client trying to determine whether to move forward on a deal now. I’ve … Continue reading “Are there any deals out there?”
When condos are a great play
Just had coffee with a regular reader who told me about his exploits buying condos as rentals during 2011-2012. Now, generally I dislike the condo-as-income-property business. It’s incredibly rare to be able to purchase condos with a decent yield in Southern California (because there isa huge ownership premium). And owning a bunch of condos in different … Continue reading “When condos are a great play”
When to lever up, and when not to
Regular readers know that I’m not a fan of using lots of debt. Debt (“leverage”) magnifies outcomes… so if you’re highly levered and the deal goes well, you do REALLY well, but if it goes badly, you get crushed. There are, however, some nuances to my view and it has to do with where you … Continue reading “When to lever up, and when not to”
How you know when you’ve trained your agents well
At Adaptive, we take a very quantitative approach to brokering income property deals for our clients. I’ve personally trained all of our agents to focus first on the achievable yield on the downpayment and only after that on other, more qualitative factors. While this doesn’t guarantee that every deal will be a homerun, it does … Continue reading “How you know when you’ve trained your agents well”
All yields are not the same
Sometimes I’m guilty of throwing around yield numbers on this blog without providing specifics. I’ll say “we legged into a 9% un-levered yield” or “the cash-on-cash yield on this deal is 6%”. Some of you are probably sitting there thinking that you can compare those yields with, for example, what you can get by lending … Continue reading “All yields are not the same”
Thinking about retirement
(Not me – don’t get excited.) Over the past few days, I attended a conference for wealth managers. I won’t lie: My intention was to meet the people tasked with managing assets for affluent investors, with the idea of convincing some of them to steer their clients my way. Turned out to be the wrong … Continue reading “Thinking about retirement”
How the price of land affects your income taxes
Yesterday, the Eastsider reported on the proposed sale of a piece of land on Temple entitled for 69 units. That got me thinking about the value of land in Echo Park and how it impacts the income taxes of property owners there. (Warning: This piece is a little heavy on the math, but it’s critically … Continue reading “How the price of land affects your income taxes”
Thinking of holding a seminar
I’m considering holding a 1-2 hour seminar on multifamily investment. Think the topics would include: Identifying / underwriting good deals; How the offer process works; How the diligence process works: What happens after you close May also include a tour of some of our properties (below finished and in progress). If you would be interested … Continue reading “Thinking of holding a seminar”