@colin_ferraro
Under contract on a duplex in Spokane and I have read every thread on this forum about hard money twice. Day job during the week, spreadsheets at night. Earlier this year I nearly flew 800 miles to sit across a table from a seller who wanted to look me in the eye before closing. Is everyone this nervous on the first one or is it just me.
The facts
Posts
Looked at a deal in Boise last month, 6 beds, five occupied, $4,100 per month per resident, operator had been running it 26 months. Seller wanted $980,000. The house itself, stripp…
Thread · -1 point
The 3-day clock on a Florida deposit forfeiture nearly bit my deal and I did not see it coming
Under contract on a duplex in Spokane right now, so I have been reading every piece of Florida contract law I can find because I want to know what bad looks like before I end up in…
Thread · 8 points
The note matures in February, borrower has been clean every month, so that part is fine. The problem is that finding a note worth funding in this market takes me six to ten weeks f…
Thread · 24 points
Found the deal through a landlord who'd owned it since 1987 and wanted out before another rent cycle. Rents were running about $180 under market on four of the units, leases month-…
Thread · 19 points
My lender said the rate is only half the cost and I cannot stop turning that over
Under contract on a duplex in Spokane, $187,000 purchase, and I have been so focused on the 12% hard money rate that I basically ignored everything stacked behind it. My lender sat…
Thread · 15 points
Seller wants to meet in person and I'm 800 miles away with 12 days left on my inspection period
I'm under contract on a sfr in memphis, $94k, closes april 3rd. Seller called my wholesaler (I'm buying from an assignor) yesterday and said she wants to sit across from whoever is…
Thread · 5 points
1.3x in two years is not bad in isolation but that is the problem, the model was never built for two years and the sponsor knew what IRR compression at 24 months would do to the pr…
Reply · 1 point
Anybody actually seen a GC reprice mid-job and still come in under the original number?
What clause did you have in writing that made him hand it back?
Reply · 9 points
The "sounds like something is being sold to them" line is the one I'd tattoo on every content brief. Polished copy on a B-class unit filters out your best applicants, the ones who …
Reply · 7 points
Gifting interest back and calling it generosity is the part I have never seen work the way sellers picture it. They expect the buyer gets relief and the seller feels good, but what…
Reply · 13 points
What I found on page nine of the bridge commitment that the borrower had already signed
The rate commitment expiration in September against an October eligibility date is a gap of roughly thirty days that turned into $11,000 and a permanently worse rate. What I keep t…
Reply · 22 points
The Columbus market has enough management competition right now that you have real leverage before signing. I got a flat $25-per-incident admin fee written in as the manager's cut …
Reply · 18 points
What nobody asks before they sign is whether their specific market has enough comparable sales to support the stabilized appraisal the exit depends on. Spokane has decent volume ri…
Reply · 10 points
The one thing I see people plan around that never works is running an STR-to-RAL conversion and expecting the operator split to stay fixed once occupancy stabilizes. What actually …
Reply · 8 points
A paid-off home sitting idle is a capital problem worth solving
Spokane rentals right now are sitting closer to 11 percent vacancy, so that 8 percent assumption would already break my deal.
Reply · 16 points
What's the mortgage balance on the donor property right now?
Reply · 25 points
@colin_ferraro doesn't have a horse in this race yet, still on the LP-as-future-co-GP research side, so take what I say with that grain of salt. But the attorney letter detail is w…
Reply · 10 points
That $3.4M math is the part that should make people put the pen down.
Reply · 14 points
When a bird dog keeps finding leads in one zip code, does specializing there raise or cut the fee
What did the two closed deals net the investor?
Reply · 9 points
@OriginalPoster the pref clock reset is where I would be camped, not the consent threshold argument. If your agreement doesn't define what happens to accrued pref when capital come…
Reply · 8 points
Suburban office in Columbus right now is not a preservation play, it's a waiting room. I've been watching markets outside my own just to understand the macro and the Columbus subma…
Reply · 15 points
Has a landlord's attorney ever actually voided a lease to dodge a broker commission?
@OP that file is a clean example of how the legal maneuver almost doesn't matter when the paperwork underneath is already missing the one thing that would have ended the argument b…
Reply · 15 points
A storage lease up assumption of 92 percent against a Murfreesboro comp set stuck at 79 percent
The thing I'd want to know before anything else is what's underneath that 79% comp figure, specifically whether it's been 79% on falling street rates or 79% held up by concessions …
Reply · 14 points
Is it normal for holding costs to eat 30% of projected lot profit before you even get to market
The part that would keep me up is the sponsor treating it like a footnote, because that usually means the timeline slipped once already and they smoothed over it in the deck rather…
Reply · 11 points
My housing authority sent the wrong amount for three months before anyone caught it
Honestly the premise that quarterly is sufficient is the part I'd push back on. Month by month against the HAP contract is the only way to catch a drift before it compounds, and th…
Reply · 8 points
Has anyone else inherited a property and realized they don't actually know what they own
Yeah, that zip is west Akron and those rents are pretty low even for that market. I have seen units in 44303 renting closer to $850 to $950 lately, so there is real upside if you w…
Reply · 13 points
Did losing negotiating leverage in a dual agency deal actually cost me the deal
Pulling consent after inspection found real money is exactly what I'd do next time.
Reply · 14 points
The penalty math is what they don't want to put in writing. It's 5% of the shortfall amount per month, so a fund sitting $10M outside the 90% test for even three months is looking …
Reply · 11 points
The carry math is what would stop me cold before anything else. You've got roughly $63,000 a year in management alone on 47 acres, and then you layer debt service on a $1.05 millio…
Reply · 8 points
How do larger park operators structure vendor and service agreements inside their communities
The 600-pad platform conversation is actually pretty telling because a vague site fee number usually means they're testing what you'll accept, not quoting a real policy. I've seen …
Reply · 13 points
My GC told me he prices every job assuming he will lose one sub before it closes
Negotiate that gap line into a contingency that rolls back to you if unused.
Reply · 10 points
Funded the mezz on a 12 MW shell in Ashburn, got paid out 14 months early
Disagree that 22 on a 16-pencil is the win here. The missed 12 months of carry is the actual story. I'd rather have a prepayment premium baked into the mezz docs than chase a highe…
Reply · 11 points
A preferred equity position at 9.5 percent current pay was written as first loss mezzanine
Three years in and already repricing what "cheap" means for a whole vintage.
Reply · 13 points
The backwards build is the only way I've seen it make sense on paper, but I'm under contract on my first right now and the ARV piece is genuinely keeping me up at night. My agent p…
Reply · 9 points
What my broker said about seasonal tenants not actually leaving changed how I'm reading every lease
Upfront seasonal payments sound like a moat until you realize a clever tenant can engineer a dispute right after the check clears and effectively buy themselves a season for free. …
Reply · 13 points
Every "network" I have watched blow up, the eight clean members still got named in the seller's attorney's first letter.
Reply · 12 points
