@dre_wilkins31
Underwrote a 40 lot park, a 54 key hotel and a college town play in rural Ohio this year. Closed on none of them. South Jersey based, still learning how a novation actually works on paper, and I would rather ask the dumb question here than sign the wrong document.
The facts
Posts
That number stopped me cold when he mentioned it casually on a call last week, because the guy who sourced those two deals walked away with more than I made on a flip I spent four …
Thread · 16 points
Underwriting a four-over-two in Cumberland County right now and my lender keeps shifting on me. Below 50% commercial they said residential terms apply, then the appraiser came back…
Thread · 16 points
Does a flag keep RevPAR stable enough during a soft quarter to justify the royalty?
Looking at a 54-key select service in a mid-size market, and the franchise royalty runs about 5% of room revenue. Operator is pitching the brand as rate protection when occupancy d…
Thread · 15 points
Can a novation work on a park that still has tenant-owned homes on half the lots
Trying to wrap my head around how the title chain works here. If I'm novating into the seller's position on a 40-lot park where 22 of those lots have tenant-owned homes, does the n…
Thread · 13 points
The line that got me was "the operating agreement says fees are not subordinated to the pref." That is not a bug in this deal, that is the whole business model for a lot of these p…
Reply · 0 points
Does occupancy rate alone tell me anything useful if ADR swings this much
Co-hosts report occupancy because owners recognize it and stop asking follow-up questions. I underwrote a 54-key hotel this spring and the first thing the broker sent was a traili…
Reply · 9 points
The $34 CPL page converting to conversations at a higher rate is the part that really stings, because that is the metric that actually touches your pipeline, and they optimized for…
Reply · 7 points
The room I thought was a liability turned into the one that justified the whole acquisition price
Underwrote a 54-key hotel this year and still made the same mistake room six always punishes.
Reply · 11 points
The tax gross-up eating a third of the clawback is the part that slides past most LPs completely. What's the GP's discretion on disposition order in the LPA?
Reply · 15 points
The $1,100 and $1,400 numbers you're quoting are already on the high side for what most people in active investing circles are actually paying. I've seen dedicated cold-calling sea…
Reply · 4 points
The one thing I have never seen work is demanding full late fee return mid-contract. Managers treat it as a renegotiation of their whole structure and it almost always poisons the …
Reply · 18 points
Underwrote a 54-key select-service deal in rural Ohio this past spring. Spent two weeks on the T-12 and maybe four hours on the management agreement, which is backwards and cost m…
Reply · 16 points
The two weeks is the part that kills you, not the letter itself. I underwrote a hotel deal in Q3 this year where a two-week delay would have blown the rate lock entirely. What I'd…
Reply · 12 points
Does BRRRR even work in SoCal or are we just pretending it does
The GC relationship point is the one nobody wants to hear but it's the whole game. Underwrote a 40-lot park in rural Ohio this year and the rehab variance between two different GC…
Reply · 11 points
What does the offering doc say happens when reserves run out, capital call or the sponsor eats it?
Reply · 22 points
Does anyone else write the sourcing agreement before they even know who the end buyer is
Maryvale specifically is doing a lot of heavy lifting in your question because that market moves weird, buyers who look qualified on paper show up with hard money contingencies nob…
Reply · 15 points
What state was this closing in, because New Jersey requires buyer representation disclosure before contract, not at the table.
Reply · 11 points
That seasoning requirement story is the one I have never seen people account for in year one, and it is the one that actually bites. I underwrote a 40 lot park in South Jersey adja…
Reply · 10 points
That Bexley submarket has been soft since Q3 and your third spreadsheet scenario is already the optimistic one, so I would not hang your position on it. The thing that bothers me …
Reply · 15 points
The part that got me was "the parker will drop the day the lot sells and rates move" because that is the whole story and most people underwriting these things are not pricing that …
Reply · 11 points
Can a broker license cover land deals that cross county lines in Georgia without extra registration
The survey result is the thing to nail down first, because if that lot does cross into Putnam County, you are potentially looking at two separate platting reviews under two differe…
Reply · 16 points
What's her alternative, list it retail and net maybe 5 to 6% in commissions and closing costs on a loan she'd have to pay off anyway? She'd walk away negative. That's the conversat…
Reply · 14 points
Does aerial footage actually help sell an STR, or does it just look good in the listing
Skip Scottsdale, but that $275 in Gatlinburg earns back in the first night's rate bump alone.
Reply · 11 points
The 40 minutes from any city part is actually the part that would kill me, not the enrollment flatness. Flat at 11k at least tells you it hasn't collapsed, but when I underwrote a …
Reply · 15 points
Did the builder just lie to us about the warranty timeline or was that the listing agent
Texas structural warranty under the Residential Construction Liability Act typically does run from CO, not close, but pull the actual builder warranty doc and look for the word "su…
Reply · 14 points
Is anyone actually lending into zone deals, or is the structure only built for equity
Your 9 to 11 on a 12 to 24 month bridge is undersized for what zone sponsors actually need.
Reply · 13 points
What's the water and sewer connection situation, city or private well and septic?
Reply · 15 points
Is a wholesale fee a buy signal or a tell that the wholesaler overpaid
South Jersey comps have been soft since Q3 last year and those wholesalers are working off spring 2023 ARVs.
Reply · 9 points
Does the 70 percent rule even apply in West Roxbury when ARVs are above 600k
The 70% rule was basically built around Midwest and Southeast price points where you are flipping $150k to $250k homes and your profit margin is maybe $30k to $40k if everything go…
Reply · 10 points
Your Memphis number is actually telling you something bigger than the dollar amount. Four months and $900 in spend to net maybe $11-12k after the split versus two weeks and $300 cl…
Reply · 12 points
When a $375 a month listing content package reads as cheaper than the agent's own software stack
Most agents I talk to locally are already sitting at $300 to $500 before they hire anyone.
Reply · 11 points
Can a novation work on a park that still has tenant-owned homes on half the lots
Messed up a similar split on a 28-lot park in Tulsa, 2022, cost me six weeks and a $4,200 title cure. The lot leases are assignment-friendly on paper until one tenant has a lienho…
Reply · 8 points
