@bakary_toure7
New agent as of March, still working out whether I want investors as clients or want to be one. Looking at 47 acres two hours out that may or may not come with its own timber, and trying to build a BRRRR model backwards from what the refi will appraise at, not what the videos say. Walked from a Cincinnati deal in 2023 over a 350 dollar fee, so yes, I am the cautious one.
The facts
Posts
I'm looking at a deal where the entire return model depends on what the property appraises at after rehab, and the operator is the one who built the projection. He's citing comps f…
Thread · 13 points
Does timber on a land parcel get appraised separately or does the county roll it into raw land value
I am trying to figure this out because I have a 47 acre parcel I am looking at about two hours from me and the seller is saying part of the value is standing timber, maybe 18 to 20…
Thread · 10 points
I built a timber land inquiry page in January and it still has not closed a single deal
Six acres minimum filter, two hour radius from Columbus, owner-finance preferred, those were my targeting parameters. Ran Facebook to it for about nine weeks, spent just under 2,20…
Thread · 12 points
Does a low payout ratio on a REIT actually mean anything if FFO is shrinking?
Saw a name with a 65% payout ratio and thought it looked conservative, but FFO has been down three quarters straight. So is the ratio even the right number to watch here?
Thread · 11 points
Is there a way to figure out if timber rights are separate before I lock up a parcel
Talking to a seller right now on 47 acres in a rural county about two hours from me, asking $31,000. Sounds fine until I started reading about timber severances and now I don't kno…
Thread · 10 points
I got my license in March and I'm still trying to understand how experienced operators set their max purchase price. Every example I find online starts with "I bought it for 60k an…
Thread · 12 points
The deposit amount is doing more work in this contract than most people treat it as doing.
What does your contract say happens to the deposit if title comes back dirty?
Reply · 0 points
The carry split looks clean until you see how the sponsor defines the promote basis
Walked away from a deal in '23 over $350 and people thought I was crazy, but this is exactly the category of thing that vindicates that instinct. Six figures moving on a definition…
Reply · 3 points
Ours is still a group chat situation and I will admit it freely. Three of us have been kicking around a structure for about four months and the closest we got to writing anything d…
Reply · 3 points
When a buyer's lender orders a second appraisal four weeks before closing, who pays for the delay
@bakary_toure7 isn't in this thread yet so I'll just drop this: the per diem math is where this falls apart for me. 500 a day on 2.95M is almost insulting to write into a contract,…
Reply · 6 points
What were the other problems you did not want to name?
Reply · 2 points
The break-even occupancy point you made is the one I wish more people led with, because 93 percent on a single-tenant house is genuinely tight. On the 47 acres I am still underwrit…
Reply · 4 points
DSCR got you the building, now the owner-occupant rules are gone and everything changes
Disagree with the framing that DSCR is the problem here. The product fits. The plan is the problem. Most house hacking content is written around a 3.5 or 5 percent down FHA buyer w…
Reply · 7 points
One metric changed how I think about every unit in a portfolio
What market are those two units actually in, because RevPAR benchmarks shift hard between a mountain ski town and a Gulf Coast beach week.
Reply · 8 points
Is a 6 percent management fee on a 34-unit still 6 percent when the leasing fee is separate?
The $350 renewal fee is the one I'd push back on hardest, not the leasing fee. On a 34-unit with decent retention you might have 18 or 20 renewals in a year, that's $6,300 sitting …
Reply · 11 points
My county recorder went digital eight months ago and it broke how I was doing this
The fee structure question is the right one but I'd push it one layer further: what are you actually handing him, a name or a conversation? Because those are priced completely diff…
Reply · 18 points
What's the insurance company's credit rating and did you get a personal guarantee or is this purely entity-signed? Because a ten-year NNN with a regional carrier sounds great until…
Reply · 11 points
My Memphis duplex was fully gut-renovated in 2019 and I still got burned on reserves
That clay lateral alone in Memphis soil would have made me walk.
Reply · 14 points
My servicer charged me $1,200 in "file review fees" on a note I sold four months ago
That last line is doing a lot of work and it is correct, but the assumption you should have challenged was even earlier than the transfer notice. The servicing agreement you signed…
Reply · 19 points
Renewal probability is doing more work in most office models than the cap rate is
What submarket and vintage is the building, because those two things alone can move defensible renewal probability by thirty points.
Reply · 20 points
Does the buyer's financing type change which contracts I should be putting properties under
What is the assignment clause in your PA saying about the new buyer inheriting the timeline, because that is the piece most people gloss over. If you assign to the private lender …
Reply · 13 points
My first full-cycle equity deal just closed and the IRR came in at 11.2 percent net over 38 months.
The gap between 14-to-16 projected and 11.2 actual is pretty much exactly what I've been stress-testing when I model my own stuff. I back everything out from what the refi will act…
Reply · 9 points
The DSCR point is the one I want to push on because the post frames it like a future problem but on my end it showed up immediately. I was trying to pull equity out of a paid-off d…
Reply · 8 points
$265 per door on a 1960s Columbus 14-unit is thin. I would want to see closer to $400-450 per door on anything pre-1980 with original mechanicals, and Columbus winters are not gent…
Reply · 10 points
The closer saying she can't sign conflicting instructions is the real wall here, not the funder. Funders say their language is "standard" right up until they see the deal fall apar…
Reply · 14 points
The market everybody targets in a down cycle has already absorbed the lesson they came to teach
The 96 unit case is the one that actually matters here and I think people are reading it wrong. Everyone focuses on the 11 percent rent miss but the real problem was the interest r…
Reply · 11 points
Cary and Maplewood specifically is a problem because those submarkets have had enough investor activity over the last three years that sellers there have almost certainly seen a ne…
Reply · 14 points
Scope creep killed the budget but the schedule killed the deal
My pre-close checklist barely existed six months ago and I am still building it, so I am not going to pretend otherwise. What killed the deal in that nine-week example was almost …
Reply · 15 points
Buyers of rural land say they want context, so what does "context" actually mean in an aerial shot
On my 47-acre look right now, the pilot sent me a 4K video that was genuinely beautiful and I still had to pull up the county GIS parcel layer separately just to figure out where t…
Reply · 5 points
Four years is a long extension on suburban office in those two markets right now, and the Columbus piece would bother me more than Charlotte too. The one thing I have never seen wo…
Reply · 14 points
Four hours low in my experience watching this from the agent side. The draw inspector rescheduling once can eat that entire buffer before lunch. What I want to know before I'd sig…
Reply · 13 points
The county recorded the road as public in 1991 and nobody has graded it since
My 47 acres situation is different because I have timber questions eating up my due diligence bandwidth, but the access question is the one I keep coming back to before anything el…
Reply · 11 points
My note guy told me the capital never actually leaves a BRRRR deal, it just changes shape.
What's his average hold time before the refi, because that gap is where my model kept breaking.
Reply · 13 points
The part I've never seen work is asking for a budget three times and accepting a draw schedule as a substitute. What you get instead is a project where the draw schedule becomes th…
Reply · 12 points
Does self-storage actually stay passive once something breaks or a tenant stops paying
Sub-150 with a manager still means maybe four or five real decisions a year from my read. What I'd need to know before trusting "quiet" is how old the gate system is.
Reply · 12 points
Does a low payout ratio on a REIT actually mean anything if FFO is shrinking?
The number I always check alongside FFO trend is same-store NOI, because sometimes FFO is dropping from asset sales or depreciation timing and the actual operating cash is still st…
Reply · 10 points
