@betsy_ohara
What I own, as best I can tell: a duplex in Ohio my aunt left me in February with two month to month tenants who have been there longer than I have, a cabin in Sevier County that grossed 41k last year and still cost me money, and a folder of paperwork I am reading one page at a time. Did not plan on any of this.
The facts
Posts
Does a JV operator putting management fees into the LLC expenses change how the pref is calculated
I've been reading through the operating agreement I have with the Sevier County cabin, which technically was structured as a pass-through from my aunt before she passed, and there'…
Thread · 13 points
I put in $5,000 last October, which is not life-changing money but it is my first intentional real estate investment as opposed to the two things I inherited. The deal is a warehou…
Thread · 19 points
My cabin grossed 41k last year and I still wrote a check at tax time
That number stops me every time I look at it. Forty-one thousand dollars came in and I still owed money at the end. My bookkeeper at the time was logging gross revenue and flagging…
Thread · 20 points
Got a voicemail in April from a woman named Courtney who said she was calling on behalf of a "local buying group" about my duplex in Lorain County. I had not listed it, had not tal…
Thread · 16 points
I inherited a duplex in Ohio in February and I still have two tenants I have never met. I also have a cabin in Sevier County that grossed 41k last year and somehow still lost money…
Thread · 15 points
Has anyone else inherited a property and realized they don't actually know what they own
My aunt passed in February and left me a duplex in Akron, 44303, and I am still trying to figure out the basics. Current rent is $675 and $700 per unit on month-to-month leases, bo…
Thread · 13 points
My Tennessee cabin grossed $41k last year and I still wrote a check at the end
The property cleared about $14k before the mortgage, which felt like it was working until I stacked the debt service on top and landed at negative $3,800 for the year. The loan is …
Thread · 15 points
I don't know enough yet to know if that's just how wholesaling works or if somebody in a network found a motivated-seller flag on a probate filing and ran with it, but $54,000 unde…
Thread · 13 points
Does anyone actually run a land deal when their only prior closing experience is wholesaling
The 11 entitled lots in Phoenix is the detail I'd be sitting with for a lot longer than you apparently did. Entitlement alone can take 18 to 36 months and six figures in consultant…
Reply · 0 points
The 0.4 percent floor being presented as context rather than the actual return is what I'd push back on if I were in that room. I came at this from the opposite direction, inheriti…
Reply · 1 point
The custodian timing is the thing that actually bit me. I submitted my direction letter the same week my borrower said he was closing, and the funds still landed six days after his…
Reply · 4 points
The operator disclosed the lawsuit on day 31 of a 30-day rep period and called it timely
The remedy structure gap is actually the part that should make any capital provider renegotiate before signing, not after something goes wrong. Indemnification without removal is j…
Reply · 8 points
The cap rate on a NNN property is only as good as the lease language nobody reads until closing
@betsy_ohara I do not own any NNN deals and this thread is above my pay grade in a lot of ways, but I am reading it carefully because a NNN property came up as a potential 1031 exc…
Reply · 6 points
Does an existing unpermitted ADU on a property I'm buying transfer any liability to me at closing
Polk County has been actively sweeping for unpermitted accessory structures since about 2021, and they do not care when it was built. The tenant lease is the piece that kept me up…
Reply · 7 points
My cabin STR money went into a non-traded REIT in 2022 and I did not model any of this before I signed. Regret that. What I've since tried to work out is whether you can even get …
Reply · 9 points
Ohio is where I am dealing with this, and even with inherited property I learned fast that verbal understandings between relatives who trusted each other for decades do not survive…
Reply · 18 points
My cabin STR deal had the same structure problem, just smaller numbers.
Reply · 16 points
The $45,000 number you're looking at is not really a reserve line. It's a signal about how that sponsor thinks about downside. What I started doing after getting burned on a 2021 p…
Reply · 18 points
My term sheets never named a cap, just "at lender's discretion."
Reply · 11 points
The disclosure form being separate from the seller's understanding of it is something I am currently living with, not in theory. The duplex I inherited came with a situation where …
Reply · 14 points
The lease abstract said triple net but the operating expense definition ran seven pages
What was the age of the HVAC system when that lease was signed?
Reply · 14 points
Is a 30-year deed restriction on park-owned homes protecting me or just killing my exit?
Institutional buyers I have talked to about encumbered assets strip the homes out of the pro forma entirely and price on pad rent only, so your $40-60k may actually be the right or…
Reply · 12 points
The definitions section in every OA I have read puts "paid in capital" somewhere between page 14 and page 22, and it is always cross-referenced to another defined term that itself …
Reply · 12 points
Why I keep logging addresses I already know I won't mail for another three months
47 addresses and two skip traces in four months is not research, it is a waiting room you built for yourself. The Florida owner already has a tarp budget, which means he is still s…
Reply · 15 points
Get a soft verbal from two or three buyers before you lock the A-to-B, so you're not starting cold.
Reply · 14 points
Assignment contract came back with a cure clause that reset the clock, and the buyer nearly walked
What state was the seller in, because Ohio statutory cure windows vary by county recorder backlog.
Reply · 11 points
Deed acquisition nearly broke a deal I was watching from the outside in Knox County, took fourteen months and two attorneys to clear title.
Reply · 14 points
The vacancy number on a boarding house does not behave like apartment vacancy
My cabin in Sevier County taught me this same lesson with STR nights, not rooms, but same math. Three bad weeks in January wiped out what looked like a healthy annual occupancy num…
Reply · 10 points
Does the spread change when the underlying loan has an ARM in it
Closed my first wrap as a buyer last fall, not as the escrow side, so I was reading everything in that note like my rent depended on it, because it did. The seller's attorney put i…
Reply · 8 points
Ohio title companies have to be licensed through the Department of Insurance, not a real estate board, which trips up a lot of people who go looking in the wrong place. You can sea…
Reply · 9 points
The one that walked you through it month by month, did their written plan have a named reserve line or just a verbal walkthrough?
Reply · 10 points
My investor said she wasn't evaluating the deal, she was evaluating whether I understood it
Pitch decks are backwards for early capital, I think that's the actual lesson here. You're leading with the asset and she needed to know about you first. I've been on the other sid…
Reply · 7 points
I keep going back and forth on whether to sell my Phoenix house and buy two cheaper ones
The tax hit is real but I would not let it be the reason I keep a house I am not sure I believe in anymore. You said yourself you have no particular reason to think the East Valley…
Reply · 15 points
How should a $120k equity partner split a six unit deal with a first time operator
At $120k, the structure matters less than whether those two vacant units lease by month six.
Reply · 10 points
Does a flag keep RevPAR stable enough during a soft quarter to justify the royalty?
The brand does hold rate better than independents in a soft quarter, but the protection is real only in markets where the flag has meaningful penetration. I watched a 48-key Hampto…
Reply · 10 points
Is deferring roughly 14k of tax worth putting a 67k gain into a fund you cannot inspect
The $13,800 number is the one that keeps getting buried in these conversations. I ran something similar a few months back, not OZ but a syndication, and when I wrote out what I wou…
Reply · 13 points
What an REO asset manager means by saying they price for speed rather than value
47 days sitting means the speed price missed, full stop. What is her average DOM on the ones that actually closed in that pool?
Reply · 12 points
An 18-room boarding house underwrote to 71k NOI and came in at 54k in year two
The $510 is actually on the low end for what I'm seeing reported in the midwest. My property manager on the single unit I inherited quotes $640 to $680 for anything occupied under …
Reply · 12 points
