Daniel Kaufman, founder of Los Angeles-based Kaufman & Company, has built a portfolio of over 10,000 multifamily units in five years without outside capital. Yet he recently made a counterintuitive decision: to step back from complex deals and focus on simpler, mission-driven projects. Kaufman realized that many of his ventures were driven by momentum rather than intention, leading him to recalibrate his approach toward work he can clearly explain and execute with a small, trusted team.
Kaufman cites Warren Buffett's discipline of investing only in what he understands. He admits to having spent years involved in deals layered with complex debt structures, tax credits, and equity arrangements that required an hour to explain. Now, he aims for clarity. "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."
His focus heading into 2027 centers on three 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 new 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, 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 across these projects is directness: straightforward deal structures, measurable community impact, and returns that do not require complexity to justify. Kaufman argues that while many developers chase 30% returns on large, capital-intensive projects with high execution risk, 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—often have near-zero vacancy rates and require no concessions to attract tenants. For Kaufman, the practical change involves being active leadership on initiatives he cares about rather than a passive stakeholder on numerous deals. 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, a private investment and holding firm with portfolio companies spanning real estate development, workforce housing, venture investment, and infrastructure. 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. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
