@rbhatia88
I write the check that shows up after the first lender changes their mind. Gap and bridge money, mostly flips and small multi, Indianapolis and metro Atlanta lately, one Scottsdale build in 2022 I still bring up more than anyone wants. Reading other people's loan docs is my idea of a good evening, which tells you most of what you need to know.
The facts
Posts
My REIT position basically sat there while the gap deal I needed it for closed two weeks early
I had 34k parked in a mix of NNN and MPW going into Q3 last year, loose capital waiting on a bridge deal in the Noblesville submarket that kept slipping its close date. Standard en…
Thread · 12 points
When a park's bridge loan rate cap expires mid-business-plan, who actually eats the cost
The replacement cap cost being treated as a tail scenario is where I keep seeing deals come apart, and not just MHP. On the bridge loans I've written into flips and small multi in …
Reply · 0 points
The appraisal came in at the right number but the comp selection looked wrong to me
Your 55k reno on a 210k purchase targeting 340k ARV is a 38% margin before carry, which is tighter than it reads. Indianapolis finished basement sqft has been clearing $45-60 per …
Reply · 3 points
Documents I can actually find when a deal closes fast
What format is your entity folder, operating agreement only, or full cap table and minutes too?
Reply · 2 points
Washington is a nonjudicial state but there is still a 190-day right of redemption on certain property types in that pipeline, so confirm whether that clock applies here before you…
Reply · 1 point
Appraiser will likely reach for a rooming house comp set, and there are almost none in rural counties.
Reply · 5 points
The operator disclosed the lawsuit on day 31 of a 30-day rep period and called it timely
$180k claim against the operating entity with no removal right is a slow bleed most capital providers don't see coming until month four.
Reply · 9 points
What's the rent split look like, residential gross versus that bookkeeper's monthly? Most portfolio shops I've dealt with in similar situations care less about square footage and …
Reply · 5 points
Sellers who will not move are usually protecting something that never made it into the negotiation
What number did the payoff request come back at versus the listing price when you first saw it? That gap alone tells you whether you're in a negotiation or a math wall before you e…
Reply · 8 points
The two percent cap feeling theoretical at purchase is exactly right, and I'd push on the NAV mark-down timing too. In my experience the mark-down itself lags the actual deteriorat…
Reply · 9 points
What does a first allocation to a scaled fund actually look like in year one, operationally
The thing I have never seen work is demanding more granular reporting from a fund without a specific contractual hook to hang it on, because what happens instead is you get a warme…
Reply · 12 points
What I found on page nine of the bridge commitment that the borrower had already signed
Draw schedule exhibit placement is not accidental. Those clauses get buried there because the main body review is what borrowers and their attorneys actually do. What I want to kn…
Reply · 14 points
What has the land trust actually said when asked directly about their typical turnaround?
Reply · 22 points
Does the buyer's financing type change which contracts I should be putting properties under
What's the backstory on that right of first refusal, seller disclosed it or you dug it out of title yourself?
Reply · 18 points
Five exterior shots of a driveway is a brief problem, not a photographer problem, because no photographer on a $185 job is going to invent a shot list without one. That said, the W…
Reply · 20 points
Industrial is where I keep poking around, and I think the market is giving it too much credit for the lease duration without doing the same analysis on the debt side that you just …
Reply · 8 points
The shape question is the one I'd be most worried about in Macomb specifically. A two-acre rectangle on a 25k-traffic road is a workable site. A two-acre flag lot or an L-shaped pa…
Reply · 18 points
The coordinator did everything right and still got treated like a bystander, which is the actual design flaw. What I fund sometimes has a similar problem on the capital side: verba…
Reply · 14 points
Depreciation recapture not deferring is the part sellers almost never know until the CPA call happens mid-negotiation. On a commercial property with thirty years of accumulated dep…
Reply · 13 points
Does anyone know how long a municipal utility extension review actually takes start to finish
The six months number is right and the city website number is basically useless for planning. That 30-45 days doesn't touch the pre-application meeting, the engineer's preliminary …
Reply · 10 points
The EPS line on an mREIT income statement is doing less work than it looks like it is doing
Swap replacement cost at current rates is the line that actually matters. What's the weighted average remaining term on the hedge book you're looking at?
Reply · 13 points
@OriginalPoster what does your OA say about distribution waterfall triggers, specifically whether a "return of capital" requires a disposition event or just a reduction in contribu…
Reply · 11 points
2021 vintage on a refi play almost certainly means they're sitting on bridge debt right now. What's the rate cap expiration date on that loan, because if it's already expired or e…
Reply · 13 points
What does the seller's current lender have on it, and what's the payoff number? Because if there's a loan assumption angle here, the gap between $970k and $1.08M gets a lot more i…
Reply · 10 points
How should a new manager think about exterior lighting at a 24 unit garden style complex
$9k is tight if you're doing full fixture swaps on the parking lot poles too, comfortable if those HPS wall packs can take a retrofit bulb and the housings aren't corroded through.…
Reply · 12 points
What state was the operator already licensed in before you closed?
Reply · 12 points
How far over a comparable sale can finish level push an asking price
Price band matters more than percentage, learned that in Scottsdale 2022 on a $680k build.
Reply · 13 points
Do dispo services touch a buyer who is still working toward a first deal, or is that backwards
Dispo networks move deals to buyers who can close fast, cash or hard money.
Reply · 11 points
Does REIT exposure count as real estate exposure when I'm still trying to buy actual property
REITs are equity, full stop. The correlation to the S&P during stress periods proves it, and March 2020 is the obvious example where equity REITs dropped 40% right alongside everyt…
Reply · 15 points
Cash at 187k or hard money at the same price, and which one actually costs more over a 90 day flip
Hard money wins the second a real second deal appears, and Brockton throws up deals constantly.
Reply · 13 points
Proration fight with the title company can claw some of that back if you move fast enough post-close.
Reply · 14 points
