News

Another Stupid California Dream

Sometimes I wonder if too many posts here are spent writing about the California housing affordability crisis – easily my most frequently posted-about topic – but then I consider that the state keeps providing ample ammunition by doing so much stupid crap. The latest in a long list of easily avoidable self-owns took place this week when […]

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California’s Faulty Proposition

No one has benefited from California’s rapidly rising property market as much as homeowners who had the good fortune to buy back in the late 70s, 80s or even well into the 90s. Not only are they often sitting on equity gains of 7 figures (if they own a home near the coast) but they […]

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Housing Stratification: Fewer Starter Homes, More Premium Homes

The bubble of the mid 2000s represented a major turning point for the US housing market. The entry level segment of the market experienced far more distress than other higher priced segments and was riddled with underwater borrowers and foreclosures. The initial market response was a plunge in pricing that drove ownership costs well below […]

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How The Feds’ Tax Plan Could Impact Prop. 13

NEWPORT BEACH, CA—Some experts say the plan passed by the House earlier this month was carefully constructed to penalize Americans who live in Democratic-leaning states including California, Landmark Capital Advisors’ managing director Adam Deermount tells GlobeSt.com. We spoke with Deermount about the proposed tax plan, how it would affect homeowners and what would happen to Prop. 13 if […]

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How AB199 Could Impact the Housing Sector

NEWPORT BEACH, CA—Those who build entry-level market-rate housing would be devastated by this bill, which would subject all residential projects built on private property to prevailing wage standards, Landmark’s Adam Deermount tells GlobeSt.com. Deermount: “This measure would make construction of housing much more expensive at a time when California can ill-afford it, in some cases […]

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Family Office Risk Appetite

We frequently speak with sponsors about family offices as equity capital sources. There is a common misconception that family office decisions are grounded in capital preservation, and therefore, should be interested in core / core+ investment opportunities. While capital preservation is an investment objective, it is important for us in the real estate industry to […]

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Show Me The Money

It is becoming readily apparent that the Banks, in general, are pulling back from ground-up construction. As we are in the market sourcing debt, we are hearing from our Bank contacts that: 1. “Our construction “bucket” is full for the year”; 2. “We are reserving our construction lending funds for existing clients”; 3. “We are […]

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HUD needs to take a new look at the FHA limits in Southern California

A key headwind in many parts of the Inland Empire, especially those cities near the border of the Coastal Counties (Orange, LA and SD) is the low SFR FHA limit. Currently, the FHA limit in Orange County is $625,500 while the FHA limit in Riverside County is $356,500, or 43% lower. As prices have escalated […]

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Spread…And More Spread, Please

One topic we discuss internally quite a bit is the idea of “reasonable” return expectations for value-add and opportunistic real estate investments.  Looking back to the days of 10.0% cap rates and the risk free rate averaging north of 5.0%, the aforementioned return profiles were driven by the infamous 20.0% IRR and 2.0 multiple test. […]

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