@kwame_asante
Private money, mainly gap funding for flippers I have watched finish a job, Columbus and Memphis plus a parking lot in Akron I never planned on owning, and I am looking at my first mezz position so I keep asking about intercreditor language, I have lost money on a lease option and a GP deal where my own check came back at zero and would rather talk about those than the wins.
The facts
Posts
Does anyone hire a coordinator just for the intercreditor and title work on a mezz stack
I am closing in on my first mezz position, somewhere between $180,000 and $220,000 behind a $1.4M senior on a mixed-use conversion in Nashville. The senior lender has their own cou…
Thread · 8 points
Does gap funding on a flip need its own appraisal, or does the senior lender's report cover me?
I am sitting in second position on a Columbus rehab, $47k in, and the senior did a full appraisal at the start of the draw schedule. My attorney says I can rely on that report for …
Thread · 17 points
The structure was 10 percent current pay, no accrual, hard redemption at month 24, and a removal right that actually had teeth because the senior was a regional bank willing to coo…
Thread · 12 points
My gap money went into an RV park refinance and I am still not sure I understood what I owned
Lender called it a bridge loan, operator called it a capital infusion, and I called it gap because that is what I do, but none of those words told me where I sat if the deal went s…
Thread · 14 points
I have a gap loan sitting in Memphis right now, 14 months in, 11.5 percent, borrower is current and I expect payoff around month 18 when he refinances. That duration I planned. But…
Thread · 16 points
Sponsor sold me on a 10-year NNN to a single hyperscaler and I kept nodding like that was the story. Took me until the third call to figure out the real upside was the 38-acre land…
Thread · 17 points
Did the gap on a straight 12-month note at 14 percent and the operator covered rent from month two. What's the fastest anyone here has seen a fresh RAL stabilize once the license w…
Thread · 16 points
60 cents on the dollar at disposition and I still owe the LP their full pref
$4.1M sale on a $3.8M basis, so the math looked fine going in. Property sat longer than projected, distributions got suspended in year 3, and the pref kept compounding. By the time…
Thread · 16 points
I have done gap funding on the flip side so I understand the mechanics, but this is my first time looking at a straight mezz position as the capital source and I am trying to get c…
Thread · 23 points
I was collecting $2,940 a month from three tenants, paying $2,400 to the seller, and holding a $540 spread. Option fee was $6,000 out of pocket. The seller had a balloon I didn't k…
Thread · 14 points
I've been tracking this since q1 2021, across fundrise, realtymogul, and two smaller platforms I won't name because they're both in workout right now. The spread between what I exp…
Thread · 3 points
Does a local wholesaler with ground access beat my remote spread on the same deal
Running the numbers on a specific file right now. Memphis, 38114. arv sits at $187k, my remote contract is at $71k, assignment fee I'm trying to pull is $14k, so end buyer gets it …
Thread · 4 points
The 22k second from 2007 that never got released is exactly the thing that ends pre-foreclosure deals and nobody talks about it enough. I funded gap on a flip in Columbus two years…
Reply · 1 point
That line about momentum making paperwork feel like friction is exactly right and also exactly how I ended up on the wrong side of a GP deal where my check came back at zero. Nobod…
Reply · 3 points
Bay Area apartment values are already repriced; the demand question is harder
Not a Bay Area developer, I sit on the capital side in Columbus and Memphis, so the ground-up construction math looks different from where I stand. But the 2026 lease-up window int…
Reply · 11 points
Does the buyer's financing type change which contracts I should be putting properties under
The gap does not kill it if your original contract has an extension clause or a soft close date, something like "on or before [date], with mutual written agreement to extend up to …
Reply · 21 points
Macomb County specifically has a lot of C-2 and light industrial split parcels that look usable until you realize the municipality already has a storage moratorium or an informal "…
Reply · 16 points
What does the seller owe on it right now?
Reply · 11 points
I booked the Isleta rehab costs into the wrong year and my depreciation basis is now wrong
$6,200 is small enough that the reclass itself isn't what concerns me, it's whether your CPA built the depreciation schedule off a March placed-in-service date already or off the D…
Reply · 11 points
Six weeks and eleven calls to get one "Tuesday" that never happened, that particular move costs me patience every single time. What I have done is treat tradespeople like borrower…
Reply · 12 points
The guy who walked in Berwyn was never going to get caught by due diligence alone, and I think treating this like a documentation problem misses something. My GP partner on a deal …
Reply · 13 points
Scope creep killed the budget but the schedule killed the deal
My lease option blowup in 2021 was a schedule problem dressed up as a market problem, and I did not see it until the money was already gone. The thing I have never seen work is an …
Reply · 13 points
The Akron lot taught me the same thing. I bought into the idea that owning a commercial asset meant I needed commercial-grade tooling, and I spent three weeks in November 2022 sett…
Reply · 14 points
Does the spread change when the underlying loan has an ARM in it
Wrote a wrap in Atlanta 2021, underlying was a 5/1 ARM, spread looked fat at closing. Month 61 the rate jumped and my net went from $340 to $80. No language in the note tied the …
Reply · 4 points
Treating every deed conversion as a failure changes how a lien model has to be built
Eight months in on the capital side and you're already catching the model problem. That's actually the right moment to catch it. The 4 to 6 percent deed assumption is not crazy, it…
Reply · 12 points
Comparing a defined assignment fee against a co-principal split on two luxury deals
Earnest money with no executed contract is a gift, not a deposit.
Reply · 11 points
My lender said the rate is only half the cost and I cannot stop turning that over
The waterfall comment your lender made is the whole game. On gap money specifically, the interest rate is almost a distraction. What matters is whether they have a participation ki…
Reply · 13 points
When a monthly contract tenant finally renewed at a number I actually asked for
The $25 jump from $85 to $110 is actually pretty modest for courthouse adjacency. I repriced a 22-space lot in Akron last year from $95 to $130 and only lost one, a guy who had a c…
Reply · 12 points
My housing authority told me to stop using my own lease entirely
The thing I have never seen work is trying to get a hearing officer to enforce a pet clause, a guest policy, or really anything behavioral that the addendum does not explicitly bac…
Reply · 14 points
Does anyone actually build their own list or is everyone just paying for the same tired data
Probate in Maryland and Virginia runs differently enough that they're basically two separate processes. Virginia's commissioner of accounts system creates a public inventory filing…
Reply · 16 points
That 18k rehab estimate on a vacant unit in Akron is running 28-35k right now minimum.
Reply · 11 points
My first LP check is going into an RV park fund and I cannot figure out what I'm actually buying
The annual-contract Michigan park and the transient Texas stop should almost never share a cap rate, you're right to flag that. Ask the GP to break out occupancy variance year-over…
Reply · 9 points
Sloan's Lake condos in that price band hit contributory value ceilings hard around 2023.
Reply · 8 points
I almost called my agent at 11pm the night before closing to back out
Garfield Heights cash flows thin but you closed, that's the only number that mattered.
Reply · 11 points
Why a title company asks who the end buyer is before it will open a double close file
That "the deal is real" line is the tell. I have never once seen a title company need end buyer info to open a file on leg one, and what actually happens when you hand it over is e…
Reply · 7 points
The operator decision at month 18 is where I would be focused right now, not the penalty. You are running someone else's playbook on an asset that just proved it can push $114 ADR,…
Reply · 14 points
