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, is deliberately stepping back from complex deals. He realized much of his work was driven by momentum rather than intention, leading him to recalibrate toward projects he can explain clearly and execute with a small trusted team.
Kaufman points to Warren Buffett’s discipline of only investing in things he understands. He says he spent years involved in deals so layered with complex debt structures, tax credits, and equity arrangements that explaining them took an hour. He no longer wants that. “I want to be able to explain everything I do in a couple of sentences,” he said. “I don’t want to be involved in anything where I don’t know how it works.”
Heading into 2027, Kaufman is concentrating his personal involvement around three initiatives. The first is Oldivai, the workforce housing platform he chairs, which 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, targeting people in transition and traveling workers in high-demand, undersupplied markets. The third is a series of smaller special projects, including a mill conversion in Rumford, Maine, that will deliver a boutique hotel and new jobs to a town largely bypassed by the broader economy.
The through line across all three is directness: straightforward deal structures, measurable community impact, and returns that do not require complexity to justify. Kaufman notes that developers routinely chase 30% returns on large, capital-intensive projects carrying substantial execution risk. He argues that smaller, mission-aligned projects in undersupplied markets regularly deliver 15% returns with fewer stakeholders, cleaner structures, and real outcomes. “When we chase these returns, we lose perspective,” he said. “Making 15% on a return is pretty good.”
The undersupplied markets he targets—secondary and tertiary cities where demand outpaces new construction—tend to have near-zero vacancy rates and no need for concessions to attract tenants. The demand is there; the complexity is not required. For Kaufman, the practical change is about involvement, not just strategy. Previously, his role on many projects was primarily as a capital source. Going forward, he plans to be active leadership on the initiatives he cares most about, rather than a passive stakeholder on a large number of deals he has limited visibility into.
It is 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 some weight. This shift underscores a broader lesson for the industry: that clarity and intention may offer a more sustainable path than chasing complexity for its own sake.
