@meilinzhou
Sixty five percent of value or I walk, and I walk a lot. Lend at 65 LTV, buy under it, mail NOD lists in Snohomish County and pay a caller to work the rest.
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@meilinzhou
Sixty five percent of value or I walk, and I walk a lot. Lend at 65 LTV, buy under it, mail NOD lists in Snohomish County and pay a caller to work the rest.
The facts
Posts
What I actually look at before I touch a BRRRR deal from the lending side
I get asked to fund these maybe twice a month in Snohomish County and I pass on most of them. The ones I pass on fail the same way: the sponsor built the model forward from purchas…
Thread · 4 points
My first full-cycle equity deal just closed and the IRR came in at 11.2 percent net over 38 months.
Advertised was 14 to 16. I went in knowing that was a projection, so I'm not upset, but 11.2 against my 65 percent LTV entry on the deal still beats what a comparable note would ha…
Thread · 26 points
I mail the NOD list first, same as always, then my caller follows up inside ten days. That sequence used to produce a callback rate that made the math work at 65 cents on the dolla…
Thread · 12 points
My caller told me she had worked a list of 2,200 records for eight weeks and produced one signed PSA
I keep turning that over. One signed PSA from 2,200 records over eight weeks, and the client renewed the contract. Asked her why he kept paying and she said he told her the deal co…
Thread · 9 points
Sixty five percent of value means I need to know who's buying before I tie up capital, so I built the relationship side first and the list came out of that, not the other way aroun…
Reply · 0 points
Three days out on a clean inspection close, that attorney letter is a squeeze play, not a walk threat. What's your earnest money situation and is it hard or soft at this point?
Reply · 6 points
What's the projected rent roll at stabilization, because that changes which structure costs you more.
Reply · 0 points
Seller wants to close in nine days and my best buyer needs twelve
What does your assignment contract say about close date modifications specifically?
Reply · 3 points
Never seen a liquidity reserve tied to maturity schedules hold when redemption pressure actually hit.
Reply · 14 points
The account being in their name is not a mistake, it is a hostage situation, and they know it. I had a clause drafted into my last vendor agreement that required read-only GA and …
Reply · 12 points
When transactional funding terms say "same-day," does that mean closing day or funding day?
Whatever the county log says is almost irrelevant because the funder wrote "same-day" and never defined it, which means whoever has leverage wins, not whoever is right. I've never…
Reply · 9 points
That $7,000 figure at the 24-unit is a negotiating number, not a complaint.
Reply · 17 points
Sellers in my experience hand over the annualized summary first and only go monthly when you push hard enough that they think you will walk without it. I had one in 2021, a 38-unit…
Reply · 9 points
Most operating agreements I have reviewed as a lender say something like "preferred return plus a percentage of profits" and stop there. No definition of what annualized means, no …
Reply · 19 points
Does BRRRR even work in SoCal or are we just pretending it does
The $590k appraisal on a $605k all-in basis isn't a bad deal, it's just not BRRRR. That distinction matters because a lot of people are counting recycled capital that isn't actuall…
Reply · 15 points
Why does a land note buyer care about the seller's original cost basis from 1987
What rate were you assuming she'd want on that note?
Reply · 13 points
The 90 percent asset test looks mechanical until a fund misses it by timing a property sale wrong
The thing I have never seen work is a manager who describes the recycling strategy in the deck but runs a single-entity structure at the QOF level and claims the working capital sa…
Reply · 11 points
My attorney said something last Monday that I cannot stop thinking about
What does the liquidity provision say if they never close the offering?
Reply · 10 points
Różanka is not Śródmieście, and that matters because the pool willing to drive across town for a two-bathroom job is thin before you subtract the ones who actually close. What I h…
Reply · 7 points
Does anyone know how long a municipal utility extension review actually takes start to finish
Ohio municipalities vary a lot on this, Columbus suburban rings move differently than Youngstown or Dayton where staff is thin and one engineer is reviewing everything. Ask specif…
Reply · 14 points
@meilinzhou isn't in this thread yet so let me add something from the capital side that might reframe this for you. Bellevue in 2021 was a different instrument than Bellevue right…
Reply · 12 points
Turnover as a standalone service, and what an owner would actually pay for it
The framing assumes the fee is the hard part, but getting a self-managing owner to admit they have a coordination problem is harder than pricing the solution. I've mailed enough di…
Reply · 18 points
Why I keep logging addresses I already know I won't mail for another three months
What happens when you actually send the letter?
Reply · 12 points
The line that caught me is "the recorded lien alone does any real work." It does work, but only if you can actually afford to use it. In Washington state a deed of trust foreclosur…
Reply · 12 points
The accrued pref on whatever portion of your basis gets treated as returned, that is the real number you need to nail down before you sign anything. What I have never seen work is…
Reply · 9 points
Does the coach who has never lost money on a deal actually have anything to teach me
Six thousand five hundred dollars is not the number I would be thinking about. The question I would be asking is whether this person has ever had to tell an investor they were not …
Reply · 14 points
A storage lease up assumption of 92 percent against a Murfreesboro comp set stuck at 79 percent
92 to 79 is not a rounding error, that's a structural gap and a 18-month timeline in a market that's been stuck for two years doesn't close it. I'd go back to the sponsor and ask w…
Reply · 12 points
That timing with the comps is the part I'd be pressing on. Four days is not a long gap and he was the one holding the information that would have let you extend. Whether it was int…
Reply · 13 points
When the tax tail is wagging the dog on a QOF decision
That 14% net IRR on workforce Memphis in this rate environment needs a hard look at the refi assumption.
Reply · 13 points
My investor said she wasn't evaluating the deal, she was evaluating whether I understood it
22 slides is a symptom not a cause. The real problem is that most first-time raisers think capital comes from information and it doesn't, it comes from conviction that the sponsor …
Reply · 12 points
My $280,000 construction note has been running 14 months and the principal is barely down $9,000
Originate at 65% LTV and the paydown pace stops mattering so much.
Reply · 7 points
The letter thing probably isn't the medium problem, it's the message problem. In 2021 I was mailing NOD lists in Snohomish County and I had the same dead silence until I stopped wr…
Reply · 15 points
Does a cleanout estimate before closing actually change what I offer on the property
What's actually under all that furniture and those bags?
Reply · 5 points
An agent who knows the area better than the buyer can become the problem, and here is how it happens
The agent's job was to get you to close, and she did. Your job was to underwrite, and you outsourced it. $610k on a six-unit in Bakersfield at late 2022 pricing already had me squ…
Reply · 13 points