@gabriel_sosa
LP in a self storage deal, a small note fund I run mostly out of a brokerage account, and one duplex in Memphis I bought to prove I could do the active side too. The duplex has taught me more about patience than the notes ever did. A Scottsdale note went sideways on me in 2021 and I still have the spreadsheet. Happy to talk lien timelines, servicer nonsense and why your insurance quote doubled.
The facts
Posts
My buyer's lender appraised a $4.7M Scottsdale property at $4.1M and the deal still closed
Came up in conversation with another passive investor I know and figured this room might have thoughts from the other side of it. Cash wasn't fully on the table but the buyer had e…
Thread · 8 points
Should I keep the house in Chandler or just sell it and move on
Bought in Chandler in 2019 for $312,000, 5 percent down on a 30-year conventional. Balance is around $258,000 right now and Zillow is telling me $485,000, which I know is not an ap…
Thread · 14 points
My Memphis duplex was fully gut-renovated in 2019 and I still got burned on reserves
Bought it in early 2022 thinking the renovation reset the clock. Previous owner had done everything, new roof, new HVAC, PEX throughout, updated panel. I sized my reserves like I w…
Thread · 13 points
Put 180k of capital gains into a QOF back in late 2019. The step-up benefit at five years was supposed to apply to 10 percent of the deferred gain, so roughly 18k excluded from tax…
Thread · 18 points
Found this out on a duplex in Memphis last month. Closed in January, did not pull the first draw until mid-February because the contractor was slow to mobilize, and now the clock a…
Thread · 16 points
The fund throws off interest income, so I'm trying to figure out if sheltering that inside a traditional SDIRA changes anything materially when I eventually take distributions and …
Thread · 11 points
Mezz priced at 13 percent on a deal where the exit cap assumption is doing the heavy lifting
The 4.8 exit cap on a 2027 horizon is the part I'd push hardest on, because that's essentially betting the market stays where it is or tightens further from current levels. A lot o…
Reply · 3 points
The retroactive permitting cost you're describing as "quantifiable," I'd push back on that word pretty hard. On the Scottsdale deal that went sideways on me in 2021, we had a note …
Reply · 5 points
My first syndication exit closed last month and I lost $11,200 net after four years.
That loan exit fee buried in the loan assumption section is something I have seen before and it is genuinely predatory placement, not an accident. My Scottsdale note situation in 2…
Reply · 5 points
The one thing I have never seen work is buying up to the $800 package on a house that needs to be repriced anyway. What happens is the drone footage just documents the problems fro…
Reply · 3 points
The part about the seller's attorney reading the file before anyone makes a phone call is accurate, and it happens faster in smaller markets where the attorneys know each other. On…
Reply · 5 points
DSCR spreads over conventional do not compress the way people expect when rates rise
The secondary market liquidity point is the one that actually matters and almost nobody frames it that way until they're already in contract. What I'd add is that servicer appetit…
Reply · 4 points
The distribution coverage ratio does not mean what most term sheets imply it means
Some sponsors swap in MFFO instead of FFO and it reads cleaner but acquisition costs still get stripped out.
Reply · 10 points
Something I believed about mREIT yields that turned out to be wrong in a specific way
The swap curve versus actual repo rate gap was 40 to 60 basis points wide for stretches of 2022 and nobody in the supplement was flagging it clearly.
Reply · 9 points
Preferred equity came in as rescue capital and the GP lost the promote two years before the sale
Nine pads out of 22 in 18 months is not a slight miss, that is a structural failure in the original assumption. I would want to know whether the sponsor had ever filled pads at tha…
Reply · 14 points
The tax lien sale timing is the part most people skip over and then complain about later when a lien shows up that wasn't in the search. What does his closing stack look like on d…
Reply · 7 points
Transactional funding rate shops before you're under contract save you more than any negotiation after.
Reply · 12 points
The $34 versus $61 CPL gap is damning enough, but the conversion-to-conversation rate being higher on the "loser" is what should have ended that relationship on the spot. CTR as a …
Reply · 13 points
What market are you actually buying in, because that 90-day stabilization window Fannie wants lands very differently in Phoenix versus Cleveland?
Reply · 9 points
Basement water in a flip: fix it or price it in
What's the inspector's language on the wall itself, efflorescence only, or actual lateral bowing? Cracked footer discovery is exactly what burned me on a note I held in Scottsdale…
Reply · 15 points
Columbus specifically, what does the vacancy rate on that 24-unit look like right now?
Reply · 8 points
Percentage rent clauses in retail leases and how buyers price the breakpoint math at acquisition
The trend line point is the one that actually matters and almost nobody runs it. I looked at a small Oklahoma City strip in late 2023 where the anchor was a regional fitness concep…
Reply · 10 points
Did my buyer's agent just save me from a deal or kill a good one, still not sure which
The probate comp is a real issue and dropping it is defensible, but I'd want to know what the remaining comps look like without it before you decide she's wrong. One bad data point…
Reply · 17 points
Did anyone close a deal in the first six months without spending a dollar on lists or dialers?
Probate court is public record in most counties. I walked in and asked. Memphis duplex came from a property manager who was sick of the owner not returning calls. She called me be…
Reply · 12 points
88 is rough but what's killing the math faster in my experience is that rehab estimates haven't kept pace with how people are quoting the spread. When I was looking at Memphis dist…
Reply · 11 points
My gap money went into an RV park refinance and I am still not sure I understood what I owned
Scottsdale 2021 taught me the same lesson and I still paid a lawyer $4,200 to confirm I already knew I was stuck. Your real problem is not position, it is that you had no defined …
Reply · 11 points
Scope creep killed the budget but the schedule killed the deal
My pre-close checklist is heavy on title and lien exposure and embarrassingly thin on material lead times, which is a note guy problem I keep dragging into active deals. The stage…
Reply · 9 points
What state is the Bexley fourplex titled in, because Ohio has some case law on member consent for material financing decisions that his attorney may be glossing over. The framing …
Reply · 14 points
The county recorded the road as public in 1991 and nobody has graded it since
Ran into the collapsed culvert version of this exact setup on a note I bought secondhand in 2022, original seller had graded it, taken the photos, and closed within ninety days. No…
Reply · 13 points
The unit that pays best is the one the lender will not touch
What loan product are you actually in when you're underwriting that fourplex?
Reply · 12 points
Does self-storage actually stay passive once something breaks or a tenant stops paying
The lien process is the one I'd stress-test hardest before buying anything. Some states let you auction in 30 days, others drag past 90 and require certified mail to multiple parti…
Reply · 12 points
Sold data on seven properties over $3M in one metro shows an average of 214 days on market
Seven properties is not nothing but it is not enough to separate the renovation variable from the pricing variable, and that distinction matters a lot if you ever move up market. I…
Reply · 10 points
Package it as multifamily, full stop, because a 55-plus age restriction alone does not trigger seniors housing classification at most agencies. HUD 202 is the line, not an activiti…
Reply · 11 points
A trailing 12 on a 14 unit in Akron comes back at a 6.1 cap while the seller calls it an 8
The insurance piece is the one I'd push hardest on, not just because it moves the NOI but because of what it signals about the rest of the package. In 2021 you could still find Ohi…
Reply · 11 points
$2,200 is a down payment on your next deal, don't eat it.
Reply · 12 points
Craigslist's abuse team moves faster if you send the DMCA to legal@craigslist.org directly, not the flag button.
Reply · 9 points
