After more than a decade focused on Berlin residential, I now invest from Los Angeles. The two markets are very different in regulation, financing, culture and building stock. But some principles I learned in Germany are just as relevant here.
1. Treat rental housing as long-term infrastructure.
In Berlin we approached residential buildings as long-term income assets, not short-term trades. ADO's platform grew to about 13,700 units by its 2015 Frankfurt listing because the thinking was patient and focused on stable income. In US markets, where the pull toward quick trades is strong, that patience is a competitive advantage.
2. Regulation is part of the thesis, not an obstacle on the way.
German tenancy law is detailed and protective. We couldn't succeed without understanding it in depth. In Los Angeles, rent control, permitting and local regulation are no less significant. The investors who do well are the ones who build them into the model from day one, not the ones who hope to get around them.
3. Scale comes from repeatable systems.
The jump from a few buildings to thousands of units didn't come from one big deal. It came from a repeatable process: sourcing, underwriting, financing and management, over and over again. The same is true in any market.
4. A landmark asset can open doors.
Buildings such as the Postfuhramt in Berlin, the Yenidze in Dresden and the Ring-Messehaus in Leipzig taught me that a distinctive property brings partners, financing and visibility.
5. Institutional capital follows clear platforms.
The partnership with Shikun & Binui and the listings in Tel Aviv and Frankfurt showed me that institutional money looks for focus, transparency and scale. A US investor who wants to raise institutional capital should build those from the start.
6. Development and income are different businesses.
In 2010 I co-founded Oreha, a joint venture with developer Ran Efrati for residential projects in Tel Aviv. Development and income-producing real estate demand different skills, risk profiles and partners. Knowing which game you're playing, and with whom, is crucial.
7. Look for the gap before it closes.
Berlin in 2005 was a market where quality and price had not yet met. Every market has such gaps at different times, in a neighborhood, an asset type or a financing structure. The work is the same: identify it early, verify it on the ground, and hold long enough for the market to recognize it.
Why this matters now
Housing affordability, regulation and long-term capital are central questions on both sides of the Atlantic. The investors who will matter in the next decade are the ones who combine patient capital, deep local knowledge and responsibility toward the people who live in the buildings.
I'd be glad to hear from investors who work in both markets: which lessons do you think travel well, and which don't?