When is a rehab not really a rehab? Here are some pics of a deal on Alvarado, a duplex we’re changing into a 4plex. As you’ll see, the only thing separating this “rehab” from a ground-up project is, well, a door-frame. On 7/28, after we bought it: On 9/17, mid demo: On 10/29, as the foundation … Continue reading “When is a rehab not a rehab?”
Category: Development
Why the rent is so damn high
Someone asked me yesterday why the rent in LA is so damn high. Figured it would make an interesting post for the blog, so here goes: Demand for close-in apartments in all major cities is growing due to: Demographics, eg more people in the prime rental age range of, says, 22-35; and A society-wide shift … Continue reading “Why the rent is so damn high”
In defense of micro-units
Just read a fairly irritating article over at Curbed LA regarding “micro-units”, which are generally defined as apartments smaller than 400 sq ft. The tone of the article is pretty negative. The blogger (whose work I generally like) spends a lot of time emphasizing how small 400 sq ft is. Micro-units are part of the … Continue reading “In defense of micro-units”
Yet another example of city-imposed insanity
Many of you know that LA is in the process of adopting stringent earthquake retrofit rules intended to prevent the collapse of so-called soft-story apartment buildings. So I thought you’d appreciate this story from the front lines: We are in the process of renovating a building with a soft-story for a partner. Here’s a picture … Continue reading “Yet another example of city-imposed insanity”
Considering crowdfunding
One of our competitors put a deal up on a crowdfunding site recently, so far with not-particularly-good results. Still, it made me think about whether crowdfunding is right for Adaptive. We have traditionally had a minimum investment of $100k for our deals. This is mostly for ease of administration… each investor, no matter how small, should … Continue reading “Considering crowdfunding”
From the local government desk, Franz Kafka reporting
Thought I’d relate a story today about the insanity of local government. We recently purchased a building which we intend to totally renovate. Due to the age of the building, the number of people who live there and lack of attention by the previous owner, there is a vermin problem in the building. The county … Continue reading “From the local government desk, Franz Kafka reporting”
Some thoughts on high-end home flipping
Have spoken with a bunch of people over the past few days who are involved in high-end home flipping. This isn’t the kind of stuff that was going on in 2009-2012, where you could buy a foreclosed single family in say, Highland Park, for $400k, dump $50k into it, and sell for $550k. Those deals … Continue reading “Some thoughts on high-end home flipping”
Do single family home rentals work in LA in 2015?
One of our clients asked an interesting question yesterday that I think worthy of some discussion here: “Has Adaptive done any single family home deals where the rental numbers would work out to at least cover PITI after fixing up the property?” In other words, can you buy a single family home as a rental … Continue reading “Do single family home rentals work in LA in 2015?”
What I did yesterday
From the “This Ain’t Just Capital Deployment” files: What did you do at your job yesterday? Me? Oh, I negotiated and then personally oversaw voluntary move-out by a guy who had been arrested for threatening his neighbors with an ax. Of course, I brought along two armed guards, plus a crew to help move his … Continue reading “What I did yesterday”
A long term building program
Have been doing some thinking about ground up development of small-to-medium size apartment buildings lately. We’ve not built ground-up before, but we’re getting closer and closer and I believe ground-up is likely to be a big part of our business mix in the coming years. Here’s how I think about it: Assuming reasonable planning … Continue reading “A long term building program”