RE #54: Moses Kagan - COVID-19: Impact on LA Real Estate

Moses Kagan, CEO of Adaptive Realty, joins Chris for his second appearance on The FORT Podcast. In this episode, they discuss how COVID-19 has affected the real estate market in Los Angeles. Moses gives his perspective on best practices providing rent relief to tenants, the effectiveness of Adaptive's all-cash buying strategy in this environment, capital markets, financing, opportunity zones, and much more. Enjoy! Follow Chris on Twitter @FortWorthChris For more information on Chris Powers and Fort Capital, visit www.fortcapitallp.com. 01:00 — Multifamily and COVID-19 in Los Angeles 02:30 — How is Los Angeles handling this compared to other parts of the country? 04:45 — How are you offering relief to tenants? 06:36 — What does “you don't have to pay rent” really mean? 07:23 — What could others learn from the way you’re providing rent relief? 11:35 — Now Until July: Worse, Better, or Same? 13:21 — What does the leasing experience look like now? 13:51 — Will this situation lead to an influx of tenants who were originally planning to buy? 15:03 — Did you have anything under contract prior to the pandemic? 15:54 — With an all-cash purchase strategy, has financing worked in your favor? 16:58 — What are you seeing in capital markets right now? 20:13 — How does getting a loan look different now versus 60 days ago? 22:08 — Has your underwriting process changed in terms of becoming comfortable with a price? 26:10 — 15% Drop in Rent vs. Purchase Price 27:08 — What does your equity environment look like? Are you currently raising capital? 31:29 — What are you doing in opportunity zones? 33:15 — Is there a specific time frame when capital needs to be deployed into an opportunity zone? 34:55 — If a deal walked in today, what would it have to look like for you to pursue it? 38:00 — Are you making distributions to investors or are you holding back to create a safety margin? 40:08 — What is different between now and ’08-’09? 43:11 — Are you changing your focus at all with hotel and retail becoming so cheap? 46:06 — Is there anything you're hoping to hear from Washington that you haven’t already? 49:24 — If you had to make a bold prediction for the end of 2021, what would most people not agree with you on? The FORT with Chris Powers is produced by Straight Up Podcasts