We Talk To A Guy With An Innovative Apartment Investment Strategy

This week on the show, we’ve invite on a real estate expert:
Moses Kagan! Moses is a partner of Adaptive Realty — a property
management company in Los Angeles.


Adaptive Realty has a unique strategy with apartment buildings;
instead of simply buying buildings and repainting and upgrading
appliances, they do huge, wholesale renovations. They vacate all
the tenants and completely redesign the properties. This enables
them to double the rent whereas most apartment value ad folks
incrementally increase the rent 20-30% after renovations. 


It’s a very unique strategy, and in this episode, we’re going to
get into all of the juicy details on how Moses has pulled this
strategy off. We talk about how he originally fell into the
industry 10 years ago, how he survived the early lean years of
being a real estate entrepreneur, the mistakes he’s made along
the way (including selling way too early for his first few
deals), and finally, his graduation from short-term funds to more
long-term permanent equity vehicles (where he can renovate the
properties and hold them indefinitely).


Today’s episode was incredibly insightful and we hope you have as
much fun listening to it as we had recording it!


Key Takeaways:


[:11] About this week’s episode with Moses Kagan.


[1:10] Welcoming Moses to the podcast!


[1:41] Moses explains what they do at his company, Adaptive
Realty.


[4:55] Moses tells the story of how he got started (before
starting Adaptive Realty) and some of his early experiences in
buying real estate.


[22:02] How Moses originally got funding, and how they got people
to leave the apartment so they could renovate.


[23:52] How they renovated the buildings to beat out the
competition.


[25:25] Moses talks about the possible percentage increase for
rent in these renovated apartments.


[26:52] Moses explains their second apartment deal, whether or
not they were making money at this point in time, and how they
made that second deal.


[29:05] Their strategy over the next couple of years for buying
buildings


[29:19] Moses talks about what they did after having to liquidate
all their buildings, starting back at “square one.”


[34:19] The steps Moses took when trying to rebuild: starting a
blog, discovering that the best deals were the fixer-uppers, and
ultimately, the creation of Adaptive Realty.


[44:09] After raising their first fund, Moses explains his next
steps.


[48:37] What Moses recommends to anyone who is starting out in
this business.


[49:24] How Moses and his partner continued to build Adaptive
Realty.


[55:15] Moses discusses some of the challenges with their
business model and the way their business has grown.


[1:00:22] Moses speaks about their progress towards more
permanent equity.


[1:02:20] Moses’ advice to those new in this business.


[1:06:15] Where to find Moses online.


Mentioned in this Episode:


Adaptive Realty


Moses Kagan (LinkedIn)


Moses Kagan’s Blog


The Alternative Investor EP.38 — “We Talk to a Guy Who Bought a
Business with an SBA Loan”


For More on The Alternative Investor, Check Out:


TheAlternativeInvestorShow.com


The Alternative Investor on iTunes — Leave us a review!





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