Seth Frey

@enfascination.com

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"Knowledge of how to combine is the mother of all other forms of knowledge." ― de Tocqueville Prof in computational commons, collective action, and social emergence. Internet as a governance lab. Science towards nescience enfascination.com/research

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As described above, the smaller size of workforce rental apartment buildings in greater Los Angeles (90% are under 50 units), mean that these assets tend to be owned by smaller unsophisticated “mom and pop” investors. Many have been held by families for decades if not generations, and during that time many of these owners have invested very little in capital improvements as they don’t want to spend the money or lose rent while improvements are going on. Basically, they are satisfied with collecting their current below market rents without interuption. For most long-time owners, maintaining the status quo (e.g., low unit turnover and vacancy) is their top priority, even at the expense of sacrificing higher potential rents and net operating income.

This mentality creates an abundance of value-added opportunities for investors like Paladin at multiple stages of the investment process.

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