All the capital for my second through 12th deals came from one of my best friends from highschool. Once he forced me to start raising money from other people, I remember complaining to him that I hated raising capital. You should have seen the stupefied look on his face, right before he said: “You realize … Continue reading “How I quit worrying and learned to love raising capital”
Category: Success
Connecting the generations with real estate
Years ago, when we were still working on the Better Dwellings portfolio, before we started Adaptive, I remember having a conversation which I now realize contributed to my bias towards holding real estate permanently. Can’t remember who it was, but the person told me about checks he receives each quarter. The source of the funds? … Continue reading “Connecting the generations with real estate”
Going into lease-up on a big project
We’re in lease-up on a wonderful complex in East Hollywood. Have posted some pics below. If you’re interested in a beautiful 2 bedroom apartment walking distance to Sunset Junction and the Red Line with parking and private outdoor space, reach out to Krystal [at] adaptiverealty [dot] com.
Why we’re sticking to our knitting
Regularly get asked the following questions: Are you planning to venture out to other cities? Start doing other product types (office, retail, etc.)? The answer to both is that I would love to branch out. Aside from the intellectual stimulation that comes from learning new things, expanding the pool of potential projects would allow us … Continue reading “Why we’re sticking to our knitting”
Finishing up a five unit
Just finished a cool five unit building in an area we know really, really well. It’s actually the third building we’ve done on the same block! To be honest, we knew this deal was a great one the moment we got it under contract… it was so good that the broker tried to chase us … Continue reading “Finishing up a five unit”
Long term holds
Why do real estate private equity investors sell assets? After all, most private owners of real estate generating really nice cashflow hold forever. And selling forces you to either re-place the capital via a 1031 exchange under duress (eg with a short window) or to pay huge tax bills. So, again, why do the smartest … Continue reading “Long term holds”
One unit left at our brand new complex on Ave 50 in Highland Park
Think we still have one unit left at the small building we just built on Ave 50, right near all the cool stuff in Highland Park. It’s a 3/2 with two parking spaces, laundry, AC, etc. for around $3000. Figueroa there is probably the most interesting retail corridor in the city right now… loads of … Continue reading “One unit left at our brand new complex on Ave 50 in Highland Park”
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”
Another successful Adaptive deal
We just closed on the refinancing of an 11 unit apartment building. We bought the building two years ago for $2.65MM, then spent another $900k renovating it, bringing the total investment to ~$3.55MM. Our net loan proceeds on the refi are $3.54MM and we’ve accumulated ~$250k in cash from operations since lease-up. So, today we’re … Continue reading “Another successful Adaptive deal”
What a successful deal looks like
Just finished stabilizing a deal and thought you all would like to see some numbers. Bought this large, non-rent control property in late 2015. Renovated and re-tenanted it, with everything finishing up in the last week or so. All in for about $3.6MM. New rent roll is $369k (so, 9.8x GRM). Looking like roughly a 7.8% unlevered … Continue reading “What a successful deal looks like”