Whether a conversion deal that needs historic tax credits should be structured before or after the credit allocation is confirmed
A deal to study: a 1930s former department store, 28,000 square feet, acquisition at $42 a foot, hard cost estimate of $110 a foot to convert to 24 apartments plus ground-floor ret…
Thread · 1 point
The inspection period is doing more work than most virtual wholesalers treat it as
Someone said to me this week that they use the inspection period "just to get an inspection done." That framing costs money. The inspection period is the only window where you can …
Thread · 17 points
The easement the deed describes and the easement that actually exists on the ground are sometimes two different things
A survey taken before closing is the moment this gets caught. Without it, what the commitment shows as an exception and what a neighbor or utility company treats as their right of …
Thread · 12 points
Four beds, four guarantors, and the lease that assumes everyone leaves at the same time
The standard by-the-bed structure on a purpose-built deal gives each tenant a separate lease and, ideally, a separate parental guarantee. The problem that rarely gets stress-tested…
Thread · 11 points
QOF due diligence keeps stalling at the working capital safe harbor, and it is worth asking whether that is reasonable
Specifically the working capital safe harbor. Every QOF data room shows a written plan, but very few show what happens if deployment runs past the 31 month window. Picture an inves…
Thread · 13 points
How should a $120k equity partner split a six unit deal with a first time operator
Here is a structure worth working through. Take a six unit building in Trenton, NJ at a $480k purchase price with 25 percent down, so $120k of equity, all of it coming from one cap…
Thread · 11 points
Asking about seller financing on every deal versus reading the situation first
@ayesha_qureshi The framing here is tight, and I'd only add one structural layer: even when basis is near zero, the seller's liquidity position in year one of the note changes whet…
Reply · 0 points
Does a tenant on a month-to-month in a small multifamily hurt the assignment fee or is it priced in already by buyers
Both are happening, but the math version is smaller than $18k in most models.
Take a 7-unit where each unit grosses $1,200 a month. The month-to-month unit represents roughly $14,…
Reply · 4 points
The floor price for video in this market is dropping faster than the close rate argument can keep up with
The revision request is the clearest tell that a flat rate is underpriced, because it is essentially an hourly commitment with no cap dressed up as a deliverable. One structural fi…
Reply · 5 points
The depreciation method my accountant chose is cutting my passive losses in half compared to what the other one projected
The recapture rate on the accelerated components is 25 percent, not your ordinary income rate, which changes the payback math significantly.
Reply · 7 points
Is a 6 percent management fee on a 34-unit still 6 percent when the leasing fee is separate?
The number worth fixing is not the 9.1 percent itself but the denominator it sits on. Your 2024 calculation uses gross collected, which means vacancy already reduced it. If the pro…
Reply · 4 points
The county recorded a road abandonment on a parcel three days after contract execution and the seller had no idea it happened.
The gap bites hardest on assignment deals because you hold equitable interest long enough to be exposed but not long enough to build a contingency response.
Take a parcel under co…
Reply · 9 points
Does a JV operator putting management fees into the LLC expenses change how the pref is calculated
The misconception here is that one of these structures is standard: both exist, and which one protects you depends entirely on how the agreement defines the base.
"Net operating d…
Reply · 11 points
Why does every STR expense guide assume I own the place twelve months and rent it zero days myself
The bucket separation is right, and the next place it matters is the mattress: the IRS treats furniture and appliances as depreciable property, so a mattress bought for the loft is…
Reply · 17 points
Renewal probability is doing more work in most office models than the cap rate is
The point I want to add is about the TI budget problem you raised, because most proformas get the direction wrong and not just the magnitude. When an above-market tenant rolls, the…
Reply · 11 points
Why does a land note buyer care about the seller's original cost basis from 1987
The seller's willingness to carry is a negotiating variable, and her basis turns it into a number you can model.
What rate would she accept on a carried note if you structured fiv…
Reply · 6 points
When a JV partner has the seller and I have the buyer, who actually controls the deal
The checklist a careful operator runs before the split conversation goes in this order: first, can the seller be re-approached by anyone in your network without the partner present…
Reply · 11 points
Does anybody price a duplex cleanout differently from two separate single family jobs
Vendors split on this and the deciding factor is usually dumpster count, not unit count.
Confirm with the vendor whether they price per pull or per job, and ask your dumpster comp…
Reply · 13 points
Can a self-directed IRA take a preferred equity position in a Texas multifamily deal, or does that structure drift into prohibited territory
The consent rights are the live wire, and "operational control" is not a single threshold but a spectrum the IRS has never cleanly mapped.
Reply · 8 points
My property manager collects rent and pays bills and I have no idea how to book those net disbursements correctly
The repair deductions your manager authorized may have included non-deductible capital items, and you have no way to know because the PDF bundles them.
Reply · 17 points
The statutory rate is the ceiling, not the floor, and most fund decks never explain what separates the two.
The underwriting question cuts to the mechanics pretty directly: if you model to auction clearing rates, you need county-level bid data broken down by lien size, because small-bala…
Reply · 5 points
Memphis ZIP code filtering left me with one neighborhood I wasn't sure I wanted
Long-tenure absentee owners in stable ZIPs can mask a specific title risk: decades-old informal transfers, heirs-in-possession, or estate situations where the person responding to …
Reply · 14 points
My tenant's lease runs out in six weeks and I haven't decided if I want to renew at all
The piece your vacancy math skips is the acquisition timing. If you and your brother are mid-diligence on a fourplex, the last thing you want is an open SFR carrying holding costs …
Reply · 16 points
Did anyone here buy into a mixed-use with a co-working or flex-office component on the second floor instead of residential
Price that floor at zero income for 18 months and see if the deal still works.
Say you paid $1.2M for the building and financed 75 percent at a 7.5 percent rate, so your monthly d…
Reply · 11 points
My seller has $0 equity and a 3.1% loan and I am trying to figure out what I actually bring to closing
What is her alternative if she walks away from this conversation today?
That single answer determines whether zero is fair or insulting, because if she can list it retail and net …
Reply · 13 points
Booked a drone crew for $480 and almost rented a helicopter for $1,100 instead
The number worth pinning down is your per-day holding cost, because that is what turns the $620 difference from a feeling into a decision rule. If carrying that parcel costs you $8…
Reply · 15 points
Is it normal for holding costs to eat 30% of projected lot profit before you even get to market
The 38k against 127k is not the ratio I would stress about first. What matters is how that 127k was built, specifically whether the per-lot sale price assumes a stabilized comp fro…
Reply · 6 points
Does a 70/30 split with a 10% pref still work when the operator is also collecting a 2% acquisition fee?
The $22k fee is not the problem by itself. The problem is whether the 10% pref is calculated on your full equity contribution or on your contribution minus the fee, because that di…
Reply · 13 points
I keep sitting on this one because of something an operator said to me Tuesday
The part I have never seen work is the assumption that late-timing and volume can coexist. Operators who wait for the three-week window end up fighting every other late-mover in th…
Reply · 13 points
A loan package came back missing four items that nobody flagged as required
A borrower self certifying the source of a deposit in the LOE without a paper trail attached does not work. Every time someone writes that a deposit was a gift from their parents a…
Reply · 11 points
My lead platform pulled in three seller appointments this week and I don't know whether to sell them or flip the deals myself
The raise timing is the thing that actually kills deals like this. Picture an operator who commits capital to a flip while the LP close is still pending; a 19 day gap between the t…
Reply · 12 points
What my broker said about seasonal tenants not actually leaving changed how I'm reading every lease
The upfront payment actually makes it worse, because in a dispute the tenant's attorney argues they've already paid for the right to occupy, and that reframes the whole removal as …
Reply · 11 points
A single family BRRRR that returned 94 percent of the capital is worth looking at closely
The 6k bothers you because you are still tracking every dollar out, which is reasonable when you are this close to closing your first one. Give it a year and you will care more abo…
Reply · 16 points
When a $375 a month listing content package reads as cheaper than the agent's own software stack
Her reaction was skepticism about what breaks at that price, and the price itself had little to do with it. She's been sold affordable before and ended up doing half the work herse…
Reply · 11 points
Med office tenants never really leave, they just stop paying what you underwrote
The dermatology group already knows you won't pull the trigger on eviction, and 14 months in tells you that. Call it what it is, a standoff where you've already shown your hand, an…
Reply · 9 points
When a same-session closing still gets charged the full day rate by a transactional funder
That "same-session" language is real. It shows up in term sheets from Memphis-area funders with some regularity, and yes, it tends to evaporate between draft and execution. A $2,45…
Reply · 17 points
