Daniel Kaufman, founder of Kaufman & Company, a Los Angeles-based private investment and holding firm that has developed more than 10,000 multifamily units without outside capital, recently made a strategic shift: he decided to pursue fewer, simpler deals. Kaufman realized that many of his past projects were driven by momentum rather than intention, involving complex debt structures, tax credits, and equity arrangements that took an hour to explain. He now aims to only take on deals he can describe in a couple of sentences. "I don't want to be involved in anything where I don't know how it works," he said.
Kaufman's recalibration focuses on three initiatives. The first is Oldivai, a workforce housing platform he chairs that partners with hospitals and school districts to deliver attainable housing using modular construction. The second is Mr. Good Container Homes, a new company converting shipping containers into workforce and affordable units for people in transition and traveling workers in high-demand, undersupplied markets. The third involves smaller special projects, including a mill conversion in Rumford, Maine, that will create a boutique hotel and jobs in an underserved town. The common thread is straightforward deal structures, measurable community impact, and returns that don't require complexity.
Kaufman argues that smaller, mission-aligned projects in undersupplied markets can deliver 15% returns with fewer stakeholders and cleaner structures, compared to the 30% returns developers often chase on large, capital-intensive projects with high execution risk. "Making 15% on a return is pretty good," he noted. These secondary and tertiary cities often have near-zero vacancy rates and strong demand, reducing the need for complex deal-making.
In practice, Kaufman is shifting from being a passive capital source on many projects to active leadership on initiatives he cares most about. He previously described his role on many deals as moving money and pushing papers rather than doing meaningful work. Now, he is making a deliberate trade: less scale, more signal. For a developer who built 10,000 units without outside capital, the argument that smaller can be smarter carries weight. More insights can be found on the Kaufman & Company Founders Blog.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
