Daniel Kaufman, founder of Kaufman & Company, a Los Angeles-based private investment and holding firm that has developed more than 10,000 multifamily units over the past five-plus years without outside capital, recently made a strategic decision to step back from complex deals. He realized much of his work was driven by momentum rather than intention. Kaufman now focuses on three initiatives: Oldivai, a workforce housing platform using modular construction; Mr. Good Container Homes, converting shipping containers into affordable units; and special projects like a mill conversion in Rumford, Maine, for a boutique hotel and jobs.
Kaufman emphasizes simplicity as a competitive advantage, citing Warren Buffett's discipline of investing only in what he understands. He wants to explain everything he does in a couple of sentences. This clarity is driving his focus heading into 2027. The through line across his initiatives is directness: straightforward deal structures, measurable community impact, and returns that do not require complexity to justify.
Kaufman argues that smaller, mission-aligned projects in undersupplied markets regularly deliver 15% returns with fewer stakeholders and cleaner structures. He notes that developers often chase 30% returns on large, capital-intensive projects with high execution risk. However, undersupplied secondary and tertiary cities have near-zero vacancy rates and no need for concessions, making complexity unnecessary.
Previously, Kaufman's role on many projects was primarily as a capital source, moving money rather than doing meaningful work. Going forward, he plans to be active leadership on the initiatives he cares most about, rather than a passive stakeholder on numerous deals. This deliberate trade-off prioritizes less scale for more signal. For a developer who built 10,000 units without outside capital, the argument that smaller can be smarter carries weight.
Kaufman writes regularly on leadership and development at 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.
