Category: Uncategorized

Drove by a gas station with advertising $2.57 / gallon last night and had my mind blown. Consider what’s involved in getting that product to that location at that price: Finding a large deposit of oil (which required drilling a bunch of dry holes first, I’m sure) Installing drilling equipment Pumping ~2 gallons of oil Transporting it … Continue reading “A little capitalism appreciation”

As you may know, US companies have something like $2T in cash sitting overseas because they don’t want to pay 35% corporate income tax to bring it back on-shore. President Trump is apparently working on a proposal to allow companies to repatriate those profits at a much lower tax rate – something like 10-15%. The … Continue reading “Thinking through Trump’s profit repatriation idea”

Thought you guys would appreciate seeing some pics of our latest 4plex project, which we’re just finishing up. This was our first and, likely, last project in Santa Monica, which is definitely not friendly to developers like us. I’d put in the contact for the leasing agent, but all the units leased in the first … Continue reading “Our latest 4plex project”

Thank goodness for old friends. An old schoolmate, AL, who sees my posts on Facebook, pointed out a key potential implication of Trump’s election that I missed in yesterday’s post: the effect on construction pricing. I expect that Trump’s election will have the effect of materially increasing construction pricing over the next few years, for … Continue reading “One further prediction re the Trump economy”

Posted this on Facebook this morning, but thought some of you might be interested as well: Predictions re the economy: 1. Trump trades very large tax cuts for large infrastructure and defense spending. Sub-prediction: The infrastructure spending goes to private contractors, not state / local governments, to avoid empowering public employee unions 2. Deficit and … Continue reading “Predictions for the Trump economy”

For most businesses, the problem is demand. In other words, they can make an infinite amount of product; the issue is how much they can sell. In our business, interestingly, it’s the total opposite. There is a structural imbalance in LA between the number of apartments (growing slowly) and the number of people who want … Continue reading “Why things are slow right now”

Thought you would appreciate seeing some “after” pics on a 16 unit apartment complex we’re just finishing up in Echo Park. Absolutely love the way this one turned out. And will always remember hiring armed guards to accompany me when I went to make a deal with an ax-wielding psycho who lived there when we bought … Continue reading “”

In light of all the doom and gloom about our country bouncing around during this election season, thought I’d share a story that inspires me every time I think about it. Our gardener in in his 70s. He came here from Mexico a million years ago. He and his company care for the landscaping at … Continue reading “A bit of inspiration”

  Late last week, one day before the deadline, I submitted my personal return for 2015. Now, in light of what’s gone on with Trump’s return, I think I should begin by noting that, as an “active real estate investor”, I probably get more tax breaks than anyone. So I’m not in any position to … Continue reading “Tax return absurdity”

Thought you all might appreciate some pics of the beginning of our latest ground-up development project. It took forever to get the permits on this, despite the project being totally by-right. But it’s going to be worth it, because the neighborhood in question is on a tear and it’s impossible to buy anything to rehab … Continue reading “Finally, we’re in the ground”