I read a TON about business, in general, and real estate, in particular. So it’s fairly rare for me to come across an idea that’s genuinely new to me. But I came across one last night, during a conversation with a much more experienced owner-operator, that I’d like to share. We were discussing the housing … Continue reading “SROs: A new, old idea”
Category: City government
Why I oppose Prop 10
Want to add my voice to those urging people to vote against Prop 10. Oh, you say, what a surprise! A real estate guy who dislikes rent control! Shocking! But, honestly, we’ve learned how to make money for ourselves and our investors under rent control. The more buildings that are subject to rent control, the … Continue reading “Why I oppose Prop 10”
Help support more housing along the Expo Line
Am writing today with a request: That you click the link below and add your name to the long list of people and organizations in favor of adding more housing along the Expo Line in LA. Here’s the link. Regular readers know that LA’s housing crisis is basically the result of terrible land-use planning. We … Continue reading “Help support more housing along the Expo Line”
Let’s behave ourselves
Have been stewing over the behavior of a few of our competitors, who skirt city law in order to drive up the returns they earn on deals. All businesses are subject to some level of government regulation. For a variety of reasons, including the fact that the assets are immovable, the ownership of rental housing … Continue reading “Let’s behave ourselves”
How increasing replacement costs imply a widening investment moat
Experienced real estate investors know to keep an eye on replacement cost when considering rehab deals. The idea is to try to ensure your property will have a cost advantage vs. its neighbors. The thought process is pretty simple: When considering doing a project, you want to look at what it would cost a competitor … Continue reading “How increasing replacement costs imply a widening investment moat”
Unsolicited advice for owners of non-RSO buildings
Owners of non-rent stabilized apartment buildings in Los Angeles with rents below market (eg most of them) ought to be considering their options in light of the likely repeal of Costa-Hawkins. Two obvious courses of action: Sell now, while the market continues to (mistakenly, in my view) place a premium on non-RSO buildings; or Immediately … Continue reading “Unsolicited advice for owners of non-RSO buildings”
Some love for Scott Weiner
As a housing supplier, it is in my financial interest for the government to continue to block development of new housing at a scale commensurate with demand. However, as an American who loves cities, in general, and Los Angeles, in particular, I am strongly in favor of loosening restrictions on development. More housing equals lower … Continue reading “Some love for Scott Weiner”
Very poor urban planning
Here are some pictures that drive me insane: These are pictures, respectively, of the Vermont /Beverly, Soto/1st, and Vermont/Santa Monica Metro stops. Why do they drive me insane? As a city, we are spending billions of dollars to build out our currently-woefully-inadequate public transportation system to turn LA into a normal city. The single … Continue reading “Very poor urban planning”
Another obstacle to in-fill development
Want to give you some insight into why, exactly, its so hard for LA to add more housing. Here’s a perfect example: We own a big, R3 lot in an improving area, bordered by two alleys. This ought to be a super easy lot to develop and, indeed, we are in the process of obtaining … Continue reading “Another obstacle to in-fill development”
Surprised by the south Valley
Was looking at a deal in the Valley yesterday, was surprised by the rents, and came to a realization about apartment supply. The reason that I was surprised by the rents is that I’m used to thinking of the Valley as having considerably more supply than the city. There’s physically just a ton of land … Continue reading “Surprised by the south Valley”