Built on long term alignment with our investors.

In my early 20s, I had a beautiful office overlooking the Manhattan Beach Pier and the Pacific Ocean. Back then, I spent a lot of time at the Shellback and La Paz.

One day at La Paz, I met a nice young guy about my age named Perry Hacking. We started talking and he asked me what I did. "I like to raise money, find partners, and buy apartment buildings," I told him. Then I asked him what he did. He said, "I'm a rocket scientist. I work at JPL."

I remember thinking, wow... a rocket scientist wants to learn from me?

Perry told me he found what I was doing really interesting and asked if he could come by my office sometime and learn more. He did. In fact, he came by many times. He picked my brain about real estate, partnerships, and raising capital, and I picked his brain too.

Not long after that, Perry and I, along with two engineers I knew from Hughes Aircraft, bought the 44-unit Continental Apartments in Lomita. That was just the beginning. Perry went on to buy many other properties with me over the years.

And to think, it all started because two young guys happened to have a beer at La Paz in Manhattan Beach.

Years ago, I was buying 48 units at 828 & 836 Beach Avenue in Inglewood when my phone rang at 6:00 in the morning. It was a local big-time real estate owner. He was about ten years older than me, already successful, and back then he could be pretty tough to deal with.

He said, "I understand you're buying those 48 units on Beach Avenue. I want that building too. If you don't meet me at Hof's Hut on Crenshaw Boulevard in one hour, I'm going to take it away from you."

I couldn't believe my ears. He was almost like an uncle to me. But I got dressed and met him at Hof's Hut. In true old-school fashion, we worked out another deal on one piece of paper. Then we went to inspect the property.

He looked around, turned to me and said, "This place is infested with gang activity." I looked at him and said, "I guess you want out?" He said, "Yep!" So I stayed with the deal.

The property had frightened tenants, serious problems, and a community that needed someone willing to step in and take responsibility. I worked with the residents, the police department, and the owner and his wife. Over time, the property became safer, the tenants became less fearful, and the community began to change.

The police department and the tenants loved me, and so did the owner and his wife. I helped protect them from losing what they had worked for, and we became good friends until they passed away.

That deal taught me something I've carried through my entire career: sometimes the best real estate opportunities aren't the easiest buildings. They're the ones where you can solve a problem, protect people, restore a community and create value at the same time.

And the big-time owner? He went on to do just fine.