Daniel Kaufman, founder of Los Angeles-based private investment and holding firm Kaufman & Company, has developed more than 10,000 multifamily units over the past five-plus years without outside capital. Despite this exceptional track record, Kaufman recently made a decision that most developers would not: he stepped back and chose to do less. Not because the business was struggling, but because he realized much of what he was doing was driven by momentum rather than intention.
Kaufman now focuses on work he can explain clearly, execute with a small trusted team, and stand behind. He points to Warren Buffett’s discipline of only investing in things he understands. Kaufman 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 for 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, moving money and pushing papers rather than doing work he found meaningful. 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.
Daniel Kaufman is the founder of Kaufman & Company, and he writes regularly on leadership and development at the Kaufman & Company Founders Blog.
