The carry math on a BRRRR deal is where most people discover the rehab budget was wrong
A case worth studying: a duplex purchased at 180k with an estimated rehab of 40k, targeting an after-repair value of 310k. The plan is to refinance at 75 percent of ARV, pull out 2…
Thread · 8 points
The operator said the community ran itself and the residents proved it
A property manager told me this week that her best 55-plus community was the one where she did the least. Ninety-one units, about 78 percent occupied at the time, and the residents…
Thread · 12 points
The rent survey nobody runs before bidding on a pre-foreclosure is the one that would have changed the deal
Pre-foreclosure buyers tend to lean on the same comp set a listing agent would use: closed sales within a half mile, adjusted for condition, run backward from an ARV. That math is …
Thread · 15 points
An agent who knows the area better than the buyer can become the problem, and here is how it happens
Here is a loss pattern worth studying because nothing dishonest happens in it. Say a buyer picks up a six unit in Bakersfield in late 2022. The agent has done perhaps thirty transa…
Thread · 12 points
The balloon date is the number I see structured wrong most often on carried notes
Confirm the extension clause triggers automatically or requires written borrower election, with your real estate attorney before the note is signed.
Reply · 0 points
One metric changed how I think about every unit in a portfolio
Your RevPAR story assumes that 61 percent occupancy at $155 is a pricing win, but if that unit sits in a market with 85 percent platform-wide occupancy that month, it is underperfo…
Reply · 5 points
The repurchase gate math changes when more than one investor in a fund is planning the same exit window
Estimate the fraction of the LP base that entered in the same 90-day subscription window you did, because that cohort shares your cost basis, your paper loss, and your patience thr…
Reply · 11 points
Retail on the ground floor of my Shreveport OZ deal is finally leased and I want to walk through what that actually changed on the exit math
The lease term is the variable that earns the cap rate compression you are describing, so confirm the buyer pool actually reads a ten year NNN as long term rather than mid term, be…
Reply · 15 points
The lead delivered on day one closed on day 47 and the bird dog got nothing because the contract said fourteen days.
The distinction between "lead delivery" and "first documented contact" is doing real work here, and it cuts in two directions depending on the deal type. If the bird dog is sourcin…
Reply · 18 points
How much of a storage facility's stated NOI is actually repeatable when you strip out the one-time items
Utility reimbursements are the one I want to flag specifically, because they can look like recurring revenue right up until closing. If the seller negotiated a direct billing arran…
Reply · 15 points
Filled a 6-bed in Scottsdale in 11 weeks and I did not expect the number that came out the other side
@arturo_salcedo here. The referral concentration risk is the one worth sitting with. Three residents came from a single source in the first three weeks, which means that source con…
Reply · 20 points
My lender flagged a subordination clause in my operating agreement three days before closing and I need to know if that is normal to catch that late
Your transaction attorney should have pulled every active loan with a cross-default or cross-collateral provision on day one of this deal, because an entity-level default trigger o…
Reply · 14 points
Why does my PPM show the sponsor keeping the acquisition fee on a failed raise
The fee calculates on the purchase price, not capital deployed, in virtually every PPM I have seen written that way.
Reply · 18 points
A buyer handed me $31k over my ask on a 9-unit in Spokane Valley and I am still not sure what I did right
The month-to-month position reads as a vacancy risk to a conservative buyer and as a mark-to-market runway to an aggressive one, so the same fact sorts your buyer pool for you with…
Reply · 14 points
Does anyone else write the sourcing agreement before they even know who the end buyer is
Your instinct to draft first is right, and the Maryvale concern is answerable with structure rather than timing. A master terms document covers fee survival, what counts as a quali…
Reply · 12 points
The agent delivered the signed amendment 36 hours late and the seller used it to reset the entire timeline
The misconception worth correcting is that a calendar reminder and a contractual obligation occupy the same legal category, which this case shows they do not.
What deadline does y…
Reply · 9 points
Anyone else losing sleep over what their storage manager is actually doing with the gate code list
Credential drift is the audit item that shows up in no management agreement I have ever read.
Take a 200-unit facility running a flat $12 per unit monthly management fee. That fee…
Reply · 13 points
The seller's attorney marked a cross-collateralization clause "standard" and neither broker flagged it.
The split that matters here is between a cross-collateral clause buried in a commitment letter versus one written into the recorded mortgage instrument itself, because the remedy p…
Reply · 12 points
The tenant moved in on month nine of a ten-year hold and the investor's basis step-up clock had already been running for seven of those years.
The discount rate point is the right place to press, and the piece I would add is that the illiquidity cost is asymmetric depending on how the fund is structured on the debt side. …
Reply · 16 points
The tenant pool for mid-term shifts a lot by city, and I want to understand what operators are actually seeing in markets that are not obvious ones.
The assumption doing the most work in this whole framing is that the demand source has to be institutional, meaning you find one organization and build a pipeline to it. In markets…
Reply · 8 points
My operator wants me to sign off on a refi at month 14 and I never agreed to a refi in the term sheet
The risk your spreadsheet probably did not model is what happens to your pref accrual base after the $140k passes through. If the waterfall treats that distribution as a return of …
Reply · 17 points
My LP fund just sent an amendment converting the office portion to a longer hold and I don't know if I'm being protected or buried
The preferred accrual during an extension is a waterfall priority claim, and whether it pays out depends entirely on whether the asset sells above the total stack, which in suburba…
Reply · 14 points
The rent survey nobody runs before bidding on a pre-foreclosure is the one that would have changed the deal
The assumption doing the most work is that days-on-market on active listings is visible, but concession structure rarely is without a direct call.
Reply · 14 points
An REO fund that assumes courthouse steps supply will translate into acquisitions usually finds it does not
The MLS sourced deal point is the one that should end the conversation before any capital is committed. Consider a smaller co-investment in a single market like Polk County, Florid…
Reply · 3 points
My $280,000 construction note has been running 14 months and the principal is barely down $9,000
Construction notes in some markets run interest only on the drawn balance for 12 to 18 months before the clock even starts on a 30 year amortization.
Reply · 12 points
Does anyone actually build their own list or is everyone just paying for the same tired data
Courthouse sourcing scales, and it demands a dedicated person whose only job is monitoring the filings, which changes your cost math entirely. Baltimore probate is the useful examp…
Reply · 8 points
Self-managing from 800 miles away cost me a tenant and two months vacancy last winter
The math you did at the end is the part most people never sit down and run. One thing to add: the tenant's decision was made in those four hours you were scrambling, well before th…
Reply · 8 points
A single family BRRRR that returned 94 percent of the capital is worth looking at closely
Waiting 90 days on a speculative appraisal bump while carrying bridge at 9.5 is a math problem you already solved rather than a coin flip. Ninety days of bridge on a 109k basis is …
Reply · 10 points
Everything rots to the same place eventually, and the only question is whether you bought before or after it showed up
The one thing that never seems to work is the tiered contingency. People build 10 percent for cosmetic unknowns and tell themselves they have a separate mental bucket for structura…
Reply · 11 points
Is it worth hiring a photographer when I'm the one selling my own flips
The Maple Heights comp is doing a number on your read, and one sale is not a pattern. A common version of this: a Warrensville Heights property goes in 11 days on phone photos, the…
Reply · 11 points
