Daniel Kaufman, founder of Kaufman & Company, a Los Angeles-based private investment and holding firm, has made a strategic decision to step back from the complex deals that characterized much of his career. Over the past five-plus years, Kaufman & Company has developed more than 10,000 multifamily units without outside capital or institutional equity. Despite this success, Kaufman recognized that many of his deals were driven by momentum rather than intention. He now focuses on projects he can explain clearly and execute with a small trusted team.
Kaufman points to Warren Buffett’s discipline of only investing in what he understands. He says he spent years involved in deals layered with complex debt structures, tax credits, and equity arrangements that took an hour to explain. “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.” This clarity is driving his focus heading into 2027.
Kaufman is concentrating on three initiatives. The first is Oldivai, a 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 involves 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 common thread is directness: straightforward deal structures, measurable community impact, and returns that don't require complexity to justify.
Kaufman notes that developers often chase 30% returns on large, capital-intensive projects with substantial execution risk. He argues that smaller, mission-aligned projects in undersupplied markets regularly deliver 15% returns with fewer stakeholders and cleaner structures. “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—have near-zero vacancy rates and no need for concessions.
For Kaufman, the practical change involves moving from being a passive capital source to active leadership on initiatives he cares about. Previously, his role on many projects was primarily providing capital. Going forward, he plans to be directly involved. 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 weight.
Daniel Kaufman is the founder of Kaufman & Company. He 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.
