The assignment fee on a marketed deal keeps getting split before anyone asks who actually moved the buyer.
In a six or seven person network, the usual split logic treats the deal-finder and the closer as the two poles, and everyone else gets allocated somewhere in the middle based on wh…
Thread · 3 points
Why a wrap seller should price the payoff window into the note before it is written
Say a buyer takes a wrap at 7 percent over an underlying at 3.5 percent on a 280,000 wrap note. The spread looks clean until year four, when the buyer refinances out, the underlyin…
Thread · 10 points
Whether a consulting fee on a passive hold that is not broken is a real expense or just anxiety
Here is a question that comes up more than people admit. Take a fourplex in a market like Fresno, bought in 2019, refinanced once in 2021, and touched almost nothing since. It cash…
Thread · 14 points
A single 2019 crowdfunding position that closed at 9.1 percent net IRR compares better to active recycling than it looks
Here is a case worth studying. Take an investor who enters one platform position in 2019 and sits on it for five years while everyone around them stacks new deals every quarter. Th…
Thread · 16 points
The market dropped and I had not renovated yet, so the question was whether to push forward or stop
The version worth running is what it costs to finish to a standard that actually competes at the top of the revised comp range, versus what the house would sell for today without r…
Reply · 2 points
The balloon date is the number I see structured wrong most often on carried notes
The condition-based trigger you mentioned is the cleaner tool, but the version I see drafted poorly ties it to appraised value alone, which gives the borrower an argument every tim…
Reply · 5 points
My market used to punish anyone who charged more than $150 for listing photos and now the same agents are asking for 3D scans on houses under $200k
The out-of-state buyer share in your specific price band is the number that decides this, because if remote buyers are 30 percent of closings on duplexes under $200k in Cleveland r…
Reply · 10 points
My bird dog sent me a lead on a vacant duplex in Independence and I paid the fee before I had a signed agreement in place
What does your state say about whether a verbal finder's fee agreement is enforceable, because that single fact changes whether you have any ground at all?
Reply · 13 points
The inspection period is doing more work than most virtual wholesalers treat it as
Before you sign anything, a careful operator runs through four things: what vendors are already scheduled and available in that zip code, what the seller's timeline pressure actual…
Reply · 6 points
Can a seller gift back the interest on a seller-financed note, and what does the IRS see when that happens
The part worth adding to what the original post covers is the interaction between the gift and the installment sale's gross profit percentage.
Take a $300,000 note where the selle…
Reply · 23 points
Does anyone actually come out ahead on an OZ deal when the real estate itself is mediocre
The tax benefit is a deferral and an exclusion, not a return on equity, and mixing those two into a single underwriting number is where most OZ decisions go wrong.
At 5.8 versus a…
Reply · 20 points
Transactional funding on a 12,000 spread is almost never worth it, but the cutoff is not where most people put it
The risk I have not seen named here is title seasoning on the B-to-C leg. Some end buyers are using financing that requires the seller to have held title for a minimum period, ofte…
Reply · 15 points
The seller signed the purchase agreement, and three days later his adult daughter called to say he had no idea what he had signed.
The most common misconception here is that the daughter's call is a threat to the contract, when it is actually diagnostic information about what the seller is going to do next. If…
Reply · 16 points
A senior lender called the loan at month 11 and the gap piece had no notice right in the paper
A redemption right costs nothing to negotiate at origination and everything to not have at month eleven.
Reply · 18 points
Distressed multifamily at a discount sounds clean until you open the rent roll
@marguerite_lo here. The rent roll age matters as much as the rent roll itself, and I rarely see it modeled carefully. A building where 60 percent of tenants signed three or more y…
Reply · 18 points
Which equity access method actually fits the BRRRR timeline, HELOC or cash-out refi on the donor property?
The number I want is the draw schedule your contractor will actually sign: specifically, what percentage of the 150k you will pull in month one versus what sits idle through month …
Reply · 12 points
Does timber on a land parcel get appraised separately or does the county roll it into raw land value
The mechanism that actually determines this is the appraiser's intended use classification. A conventional lender ordering an appraisal under standard residential or agricultural g…
Reply · 9 points
My inheritance landed me on a micro-wholesaler network's list somehow and I do not know how to feel about it
The skip trace on a fresh probate filing is standard sourcing for wholesalers, and the speed feels aggressive because it is designed to. The 34k discount off the auditor's assessed…
Reply · 10 points
The exit you modeled when you bought is not the exit the borrower hands you
The successor-in-interest claim after a quiet title action mid-foreclosure is the path that breaks the model hardest, because it resets standing rather than just extending timeline…
Reply · 13 points
Did anyone get a county to rezone a raw parcel mid-assignment without killing the deal?
The assumption doing the most work here is that your buyer needs the rezone completed before he closes, when what he probably needs is certainty that it will complete on terms he c…
Reply · 11 points
My operator wants me to sign off on a refi at month 14 and I never agreed to a refi in the term sheet
What does your waterfall say happens to accrued pref when a distribution is made mid-hold, specifically whether it resets the basis or just reduces it?
Reply · 8 points
Does a 70/30 split with a 10% pref still work when the operator is also collecting a 2% acquisition fee?
Confirm the fee basis in writing before signing, with your attorney reviewing the waterfall definition.
The $22k is not the core issue. What matters is whether the pref is calcula…
Reply · 12 points
My brother thinks REITs are fake real estate and I used to say the same thing
The fake real estate framing is backwards, because what matters is what the asset produces rather than what you can put a hand on. That said, the parking position logic deserves so…
Reply · 13 points
Whether a consulting fee on a passive hold that is not broken is a real expense or just anxiety
Fresno rents have moved enough since 2019 that the only real question is whether you are at market.
Reply · 18 points
Preferred equity is called safer than common because of its place in the stack, and the stack picture hides more than it shows
@FaithFarlow the removal mechanism is the part to stare at hardest. Sixty days notice plus majority approval from a sponsor-controlled group is a formality that exists to make the …
Reply · 11 points
Do dispo services touch a buyer who is still working toward a first deal, or is that backwards
The networks those investors are plugged into almost certainly keep a loose buyer list, and getting on it costs nothing beyond a two minute conversation and a proof of funds letter…
Reply · 14 points
Is there a way to figure out if timber rights are separate before I lock up a parcel
The contingency framing is backwards for what you actually need here. Write it as timber rights included in conveyance being a condition of closing rather than a void trigger. That…
Reply · 13 points
Does anyone actually build the BRRRR model backwards, starting with what the refinance will realistically appraise at in your specific market?
Six month old comps in a moving market get flagged by underwriters and adjusted downward.
Reply · 12 points
Someone told me this week that the market I'm targeting doesn't have enough search volume to run Google ads and I can't stop turning it over
The search volume problem is real, though the framing of "disqualified" is doing some heavy lifting worth pushing back on. Take an operator buying in the Rust Belt corridor in 2019…
Reply · 15 points
Does a marketplace service actually move the paper faster or am I just paying for the feeling of distribution
The attribution question is the one nobody wants to answer cleanly. Wholesalers almost never learn which inbox actually triggered the call, because buyers do not tell them and mark…
Reply · 7 points
Pushed through a full PIP on a 48-key limited service and came out the other side with numbers I can actually underwrite
Six weeks past the franchise deadline and $38,000 is the number they hit you with, and that penalty scales fast. A 34-key that misses a 2022 deadline by a similar margin can land a…
Reply · 11 points
