A difference between brokers and principals

Got a phone call today from a great pair of brokers with whom I have long-standing, mutually-profitable relationships. They were calling to congratulate me on closing our most recent deal. On the call, I told them again how much I appreciate their continued help (particularly on this deal, which got a little hairy). But also … Continue reading “A difference between brokers and principals”

Imagining a cashflow monster

Regular readers know I’m an avid follower of Berkshire Hathaway, Warren Buffett’s company. One interesting thing about BH is that Buffett never issues dividends. His argument is that he can find better uses for cash the company generates than the investors could on their own (particularly given that dividends are subject to taxes at the … Continue reading “Imagining a cashflow monster”

An effective tactic we just can’t use

Yesterday, I noted that pricing for apartment buildings in LA has become detached from the underlying cashflows the buildings can generate. But some deals are still getting done at (semi-)reasonable prices and I want to discuss how, and why it’s a problem for me. Right now, listing brokers and sellers are pricing properties very aggressively. … Continue reading “An effective tactic we just can’t use”