Daniel Kaufman, founder of Los Angeles-based Kaufman & Company, has built a notable career in real estate development, overseeing more than 10,000 multifamily units in the past five years without external capital. Yet despite this success, Kaufman has chosen to scale back, not because of financial struggles, but because he realized many of his deals were driven by momentum rather than intention. His new strategy: only take on projects he can explain clearly in a couple of sentences.
Kaufman points to Warren Buffett’s discipline of investing only in what he understands. After years of navigating deals layered with complex debt structures, tax credits, and equity arrangements, Kaufman decided to simplify. “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 now guiding his focus heading into 2027, concentrating on three key 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 company converting shipping containers into workforce and affordable units for people in transition and traveling workers in high-demand markets. The third involves smaller special projects, such as a mill conversion in Rumford, Maine, that will create a boutique hotel and jobs in a town often overlooked by the broader economy.
Kaufman argues that smaller, mission-aligned projects in undersupplied markets can deliver solid returns without the complexity. He notes that developers often chase 30% returns on capital-intensive projects with high execution risk, while simpler projects in secondary and tertiary cities regularly achieve 15% returns with fewer stakeholders and clearer outcomes. “When we chase these returns, we lose perspective,” he said. “Making 15% on a return is pretty good.” These markets, with near-zero vacancy rates and no need for concessions, offer strong demand without requiring complex deal structures.
The shift also changes Kaufman’s role. Previously, he was often a capital source, moving money and managing papers. Now, he plans to take active leadership on initiatives he cares about, rather than being a passive stakeholder in numerous deals. This trade-off—less scale for more signal—reflects a deliberate recalibration. For a developer who has built thousands of 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. His approach offers a counterpoint to the industry’s typical pursuit of growth, emphasizing that meaningful impact and solid returns don’t require complexity.
