Developer Daniel Kaufman Shifts Strategy to Simpler, Smaller Deals for Greater Impact
Los Angeles developer Daniel Kaufman is refocusing his portfolio on simpler, mission-aligned projects he can explain in two sentences, arguing that smaller deals in undersupplied markets can deliver strong returns with less complexity.
Daniel Kaufman, founder of Los Angeles-based private investment firm Kaufman & Company, has built a track record that most developers would envy: more than 10,000 multifamily units developed over five-plus years without outside capital or institutional equity. Yet Kaufman recently made a counterintuitive decision: he chose to do less. Not because of financial trouble, but because he realized much of his work was driven by momentum rather than intention.
Kaufman now advocates for simplicity as a competitive advantage. He points to Warren Buffett's discipline of investing only in what he understands, and says he spent years involved in deals so layered with complex debt structures, tax credits, and equity arrangements that explaining them took an hour. “I want to be able to explain everything I do in a couple of sentences,” Kaufman 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 his personal involvement on three initiatives: Oldivai, a workforce housing platform that partners with hospitals and school districts to deliver attainable housing using modular construction; Mr. Good Container Homes, a new company converting shipping containers into workforce and affordable units; and a series of smaller special projects, including a mill conversion in Rumford, Maine, that will deliver a boutique hotel and new jobs.
The through line across all three is directness: straightforward deal structures, measurable community impact, and returns that do not require complexity to justify. Kaufman argues that developers routinely chase 30% returns on large, capital-intensive projects with substantial execution risk, while 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—tend to have near-zero vacancy rates and no need for concessions to attract tenants. 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. 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. Kaufman writes regularly on leadership and development at the Kaufman & Company Founders Blog.