The lot operator wants a five-year term and I want flexibility if the area rezones.
A shorter term, say two or three years, keeps optionality alive but the operator prices that in through a lower guaranteed rent, because they need to amortize their setup costs ove…
Thread · 17 points
Six months of construction slip turned a 14 percent pref into a 9 percent effective yield, and the sponsor thought he was handing investors a win.
The numbers in this case are worth walking through. A $2,000,000 preferred equity piece at 14 percent annualized, with a pref return accruing daily, was projected to be redeemed at…
Thread · 17 points
Where a sourcing fee sits on the settlement statement when the buyer's fund will not take it from the seller side
Here is a structuring problem worth working through, because institutional buyers raise it more often now. A private equity group out of Austin sets up a sourcing arrangement on si…
Thread · 15 points
A preferred equity position at 9.5 percent current pay was written as first loss mezzanine
A structure worth examining. A 2.1 million preferred equity position on a 48 unit deal, 9.5 percent current pay, 18 month term with two six month extensions, written as first loss …
Thread · 19 points
What contingency and carry belong in a 40 lot subdivision pro forma
Take a 40 lot subdivision. Raw land 1.1M. Engineer's opinion of probable cost at 1.72M, roughly 43k a lot for grading, wet utilities, paving, storm, dry utility trenching and lands…
Thread · 7 points
A case study in underwriting a Sun Belt flip on 2021 comp behavior and losing 9k on it
Consider a purchase at 291 in a metro that ran hot through 2021 and 2022. 1,900 square feet, 2004 build, everything sound. Scope 34k of paint, flooring, fixtures, kitchen counters …
Thread · 22 points
Eleven listings on a staging comp sheet that decide nothing on their own
Say someone builds a sheet to answer whether staging is worth it on a house about to be listed, and pulls 11 listings in one submarket over 14 months, same general price band, 240k…
Thread · 35 points
Weighing leverage on a parking lot when the unlevered return looks fine but future demand does not
Take a surface lot, 64 spaces, three blocks from a hospital campus and a transit stop, asking 940k. Underwriting off actual collections rather than a seller's projection gets to ro…
Thread · 27 points
Before answering a seller's Friday deadline on raw land, call the planning department first
Take an 11 acre parcel on the edge of a town of about 40,000, currently zoned agricultural, shown on the comprehensive plan as low density residential, with a sewer trunk line runn…
Thread · 23 points
Redfin shows buyer-side fees ticking down at the top while holding elsewhere. Does that trend keep going
The Redfin analysis showing buyer-agent commissions on luxury homes coming down slightly after the new rules, while commissions on cheaper homes held or rose, is worth sitting with…
Thread · 28 points
A 34 video, 61 hour content run that produced three calls is worth studying for why
Take an agent testing whether self-produced content could replace a paid vendor before committing budget. Over two months, mostly evenings and weekends, the run came to 61 tracked …
Thread · 14 points
Ranking nine REIT tickers by different metrics keeps producing different winners. What actually breaks the tie.
A common trap when sizing a first REIT position is building a spreadsheet across too many tickers and too many columns, say nine names spanning industrial, data centers, residentia…
Thread · 32 points
A twenty one hundred dollar CRM build is wasted when the pipeline behind it is still empty.
A common pattern with new investors is spending on the system before there is anything flowing through it. Take an investor who pays 2,150 for a consultant to build an investor CRM…
Thread · 33 points
Why a lender's projected ADU rent can land far below a buyer's own estimate
Take a purchase of a 1,900 square foot single family home with a detached garage planned for ADU conversion, where the buyer's own underwriting put the converted garage at 1,650 a …
Thread · 29 points
In BRRRR, should the property be chosen for the rehab discount or for the rent it produces years out
A question worth sitting with in BRRRR is which end of the deal to shop from first. One school of thought says the discount is where the money is made. Buy the roughest house on th…
Thread · 12 points
What double closing a wholesale deal actually costs start to finish
The choice between assignment and double close comes down to what each actually costs in real dollars. An assignment typically costs very little, mostly an assignment fee disclosed…
Thread · 18 points
What a senior secured note position that hit trouble and recovered looks like in the numbers
Consider a $35,000 senior secured position on a 96 unit value add multifamily deal in a mid sized midwest market, raised through a portal. Structure: 11% current pay, monthly, 24 m…
Thread · 15 points
When two suites in the same building show a large rent gap, is it a medical premium or a stale lease
Take a small two-story building in a suburban node with a 2,100 square foot pediatric practice on one floor at $34 a square foot and a 2,000 square foot insurance agency on another…
Thread · 23 points
Underwrite a subdivide at retail absorption, or at a bulk exit with retail as the upside
Take a 48 acre parcel where the ordinance supports 9 lots without a public road using existing frontage and one easement, with frontage as the constraint on pace. If comparable lot…
Thread · 21 points
A spec home built to the top of the street on the wrong lot, and what an 88k loss on it teaches about pricing exits first
Consider a 2,340 square foot, two story, four bedroom spec home in an established neighborhood where similar houses trade between 545 and 590. This one appraised at 508 and sold at…
Thread · 8 points
Should a new virtual wholesaler start in their home market or the best market they can find
A common dilemma for new virtual wholesalers is choosing between two shortlisted out-of-state markets with decent price spreads and plenty of listed cash sales, versus starting in …
Thread · 27 points
Modeling breakeven on a dispo partnership paid on a percentage of spread
Take a dispo partnership where two acquisition-focused wholesalers with no dispo capacity offer 40 percent of spread on deals sold. A combined trailing six months of 47 contracts s…
Thread · 35 points
Do bare lots need insurance while they sit unsold
Consider a tract being split into six pieces, where two insurance conversations in one afternoon produce two answers: raw land needs nothing because nothing is built on it, or a va…
Thread · 28 points
Fixed debt matched to the lease term, or short cheap debt with a balloon two years before expiry
Take a 12 year net lease on a small format retail box, national tenant, $148k NOI, priced around a 6.9 cap so roughly $2.15m. Two financing paths are common in this situation, both…
Thread · 28 points
A yield model that survived exactly one real tape
Say an analyst spends about six weeks building a spreadsheet for performing notes: remaining term, rate, purchase price as a percent of balance, yield to maturity, and a column str…
Thread · 20 points
A land assignment closed at 9k shows how a hidden mobile home nearly killed the deal
Take a 5.1 acre parcel at the edge of a growing small town, county road frontage, no utilities at the line but power about 400 feet away, assessed at 61k. Sending 240 letters to ou…
Thread · 29 points
Whether the paint spec should be the same in a 180k house and a 340k house
Compare two finished cosmetic flips in the same metro, different price bands, with nearly identical material specs. Same builder white on the walls, same LVP, same brushed nickel p…
Thread · 20 points
When does carry math on a golf course house only work if it sells fast
Take a 6,200 sq ft 1994 build on a golf course lot in a top submarket. Listed at 2.65M, sitting 140 days, seller is an estate. An offer worth considering sits around 2.35M, maybe 2…
Thread · 14 points
Turning a bloated absentee-owner list into calls worth making
A useful case for anyone drowning in list size. Start with a broad pull, everything absentee in two zip codes with 50 percent plus equity, which can easily run into the thousands o…
Thread · 11 points
What a subject-to deal built from a course template instead of an attorney can cost when the due-on-sale clause gets triggered
A subject-to deal is one of the fastest ways a course template can produce a costly outcome, and the failure pattern is worth laying out in order. Take a seller with a 3.1 percent …
Thread · 13 points
The lot operator wants a five-year term and I want flexibility if the area rezones.
The post above has the rent premium math right, and the next variable is who absorbs the gap if the operator underperforms during the ramp-up period. A five-year deal often include…
Reply · 19 points
My first full-cycle equity deal just closed and the IRR came in at 11.2 percent net over 38 months.
The 65 percent LTV framing is doing a lot of work in your favor, but the comparison still depends on where in the capital stack you were sitting. If you were in common equity, a 3 …
Reply · 18 points
My reserve line on the Akron duplex is 4 percent of gross rents and I have no idea if that transfers to how I should think about reserves on a crowdfunded deal
The question underneath your question is what happens when $45,000 runs out.
A reserve line only makes sense next to the capital call provision, because on a preferred equity deal…
Reply · 26 points
When does a mixed-use lender stop counting residential income and start treating the whole thing like a commercial deal
The appraiser is the one actually moving this deal, and that matters more than whatever percentage your lender quoted you. When an appraiser assigns income approach weight to the c…
Reply · 11 points
I am self-managing a Cincinnati condo on Airbnb and trying to figure out where the actual time goes before I decide whether to keep doing it myself
The task split depends almost entirely on how you draft the co-host agreement, but in practice most co-hosts operate one of two ways: full operational authority, where they own eve…
Reply · 13 points
Does a post-cleanout walkthrough actually change what vendors fix before I sign off
The walkthrough matters most when you have a written scope attached to the invoice, because then anything missed is a punch list item the crew owes you, and most vendors will retur…
Reply · 10 points
Did anyone get a county to rezone a raw parcel mid-assignment without killing the deal?
The seller's "antsy" is the risk that buries this before the county even schedules a pre-app meeting.
If the seller walks at day 46, the end buyer loses his rezoning application f…
Reply · 15 points
Did anyone else take a loss inside a QOF and come out confused about whether it actually helped them
@luis_carrera The bucket mismatch you're describing is real, and the part that tends to surprise people is that the capital loss carryforward from the fund disposition can offset f…
Reply · 9 points
Has anyone actually compared what their VA agency charges per closed deal versus what they'd have spent hiring the same labor direct
The agency premium you're paying is essentially an insurance and recruiting fee rolled into one monthly line, and whether it pencils depends on how often you'd actually use the ben…
Reply · 13 points
Has anyone here actually bought rural land in Spain and run the numbers on agricultural income?
Dryland cereal in that corridor, think barley and wheat, tends to produce somewhere between 2,000 and 3,500 kilos per hectare in a decent rainfall year, and at current Spanish farm…
Reply · 12 points
Taking a construction loan file adds about four hours to coordination and most flat fees do not reflect that
The effective hourly math is the place most coordinators look last. Take a flat fee of $350 and assume a standard file takes seven hours, so $50 an hour. Add four hours for constru…
Reply · 14 points
The rent survey nobody runs before bidding on a pre-foreclosure is the one that would have changed the deal
The part of that survey most people skip is the concession call, and it is the one that reprices the whole analysis. A landlord advertising at $1,050 with a free month buried in th…
Reply · 12 points
A storage lease up assumption of 92 percent against a Murfreesboro comp set stuck at 79 percent
That 79% comp set sitting flat for two years is the number to keep coming back to. The sponsor assumption that always breaks first is the one about why their asset will outperform …
Reply · 11 points
Twelve months into a cold storage conversion in Stockton and the first tenant just signed
A rate of $0.72 in Stockton is trailing the Inland Empire right now, where comparable cold storage with USDA certification has been clearing $0.84 to $0.91 on new signings this yea…
Reply · 8 points
Treating every deed conversion as a failure changes how a lien model has to be built
The framing of "collections vs. real estate" is useful, but it undersells how much the 7.1 net depends on the specific municipal profiles they picked, beyond the operational postur…
Reply · 12 points
Does the buyer's credit history actually matter when I'm the one holding the note forever
Seen from the lender side, the correlation between origination score and default on seller-carried paper is genuinely weak compared to what you see in institutional portfolios, and…
Reply · 17 points
How do I report a subject-to deal to investors when the underlying loan is still in the seller's name
Get on the call. Monthly update language will not undo the confusion that already happened, and trying to finesse it in writing is exactly what makes investors feel like something …
Reply · 11 points
My investor said she wasn't evaluating the deal, she was evaluating whether I understood it
That question is basically a trust test dressed as a financial question. She already knew the numbers from the deck, and she was working out whether you would blow smoke or tell he…
Reply · 13 points
Photos I took for a probate listing showed up in a Craigslist rental scam three weeks after I posted the MLS listing.
Craigslist rarely moves fast on a flag, but a Google image search finds the host carrying the photos and a DMCA notice to that host usually kills the ad within 48 hours.
Reply · 13 points
A single 2019 crowdfunding position that closed at 9.1 percent net IRR compares better to active recycling than it looks
What was the all in tax drag on that single K-1?
Reply · 11 points
A bad foundation can eat the whole margin on a live in flip, and here is a case that shows how
Decatur comps have been sticky at that ceiling for a long time, and it is a market that rarely rewards the patience people hope for. Taking the $6k loss now, before another dollar …
Reply · 10 points
How does a 55/45 JV wholesale split work when one side holds the seller and the other brings the buyer
Six weeks from first conversation to signed contract is the part worth pushing on a little. Where a landlord relationship is long and comfortable, the seller side timeline usually …
Reply · 5 points
A 34-lot park in Fresno County with three vacant pads, what does it actually cost to bring a California pad to move-in ready
A realistic Tulare County benchmark from 2023: activating a vacant pad, meaning permits, grade work, utility connections and inspections, came in around $18,400 per pad before a si…
Reply · 10 points
Is it normal for a stager to require a signed minimum term before the listing is even priced
The detail that will sting is that the 8-week clock usually starts on delivery day rather than list day, so if you spend two weeks getting photos done and another week with your ag…
Reply · 10 points
Is a franchise tenant with no personal guarantee worth more or less than a local with one
Franchise credit on a 6,400 sf strip in a secondary market gets priced like it is Starbucks, and it almost never is.
Reply · 15 points
What an REO asset manager means by saying they price for speed rather than value
The priced for speed line is common across asset managers working REO and note pools, and what it actually means operationally varies by who holds the paper. GSE-backed stuff, Fann…
Reply · 7 points
Should the HELOC come now at $40k, or six months later at $70k
A common pattern worth watching for: waiting nine months for a better appraisal number, then a bad quarter in the business, pulling nothing and losing the rate window entirely. Tim…
Reply · 14 points
When a same-session closing still gets charged the full day rate by a transactional funder
Draft-to-final diff is the only document comparison that actually matters in this business.
Reply · 15 points
Is there a minimum unit count where ground up development starts to make sense financially
Twelve works fine in Bend or Boise right now. Skip Tacoma.
Reply · 10 points
My inherited duplex in Bakersfield just got a cash offer from a micro-wholesaler network I never contacted, $187,000, and Zillow has it at $241,000.
Probate filings are public record in California, and that is the whole pipeline. Someone is pulling those filings weekly, probably daily in a county like Kern, flagging recent tran…
Reply · 10 points
