807 N Madison is leased up

We just finished leasing up the front structure at 807 N Madison, our most recently completed renovation project. Leasing the 10 units took us something like 31 days. We began construction in mid September of 2014, so the entire process took approx. 300 days (a little longer than we would like, due to some unanticipated … Continue reading “807 N Madison is leased up”

You can’t juke the operating expenses

There’s another broker with whom I’m acquainted who always seems to have amazing deals to show her clients. Every week or so, I see her pitching deals with 8-10% cash on cash returns. Eventually, I started to get curious. After all, this is a tough market. I have every advantage in the world, and it’s not easy for … Continue reading “You can’t juke the operating expenses”

If I were a broker…

…who didn’t also renovate tons of apartment buildings, I would: Run rent surveys across all relevant neighborhoods, all the time Constantly poll my clients about construction costs for different finish levels and unit sizes Constantly poll my clients about eviction / tenant relocation costs Why would I do all these things? Because, without the above … Continue reading “If I were a broker…”

Taking apart a deal: An East Hollywood Duplex

Today, I’m going to try something new: Taking a look at a deal in one of our neighborhoods so that we can get a sense for what the numbers look like for the new owner. So, let’s take a look at an East Hollywood duplex that sold yesterday. I should start out by saying I didn’t offer … Continue reading “Taking apart a deal: An East Hollywood Duplex”

How Adaptive thinks about valuing apartment buildings

The first time someone asked me to come in to talk to them about listing their property for sale, I was pretty unsure about how to handle the meeting. Of course, I had my own ideas about the value of the property. But I was also concerned about the possibility of losing the assignment by … Continue reading “How Adaptive thinks about valuing apartment buildings”

How following one dumb rule of thumb cost me thousands of dollars

When I first started buying buildings, I needed a quick and dirty way to estimate operating expenses. I hadn’t owned any buildings long enough to have historical data upon which to base assumptions. At the time, I was using an accountant who knew just enough about real estate to be truly dangerous. I asked him … Continue reading “How following one dumb rule of thumb cost me thousands of dollars”