The market everybody targets in a down cycle has already absorbed the lesson they came to teach
The instinct makes sense. Submarket has softened, land sellers are more realistic, construction pricing has come off peak, so you buy low into a trough and deliver into a recovery.…
Thread · 11 points
How closely should an LP read the collateral and security provisions in a mobile home park fund LPA
Here is a scenario worth working through. A mobile home park fund closes at $22M in 2021 and deploys into eight parks across Oklahoma and Arkansas. The deck says value add, mostly …
Thread · 9 points
The client says six to nine months, so how many of you actually build a hard minimum term into the lease?
The minimum term is not a lease clause, it is the asset underwriting decision that makes the premium real.
If the furnishing package costs $8,000 installed and you depreciate it o…
Reply · 13 points
My servicer just found out the environmental report on the Georgia note has a recognized environmental condition from a dry cleaner that closed in 1989
The path nobody has mapped yet is the deed in lieu with an environmental carve-out, where the borrower conveys title but the agreement expressly leaves remediation liability with t…
Reply · 20 points
A paid-off home sitting idle is a capital problem worth solving
Rental DSCR underwriting will stress-test that 8 percent vacancy floor for you before the lender does.
Reply · 9 points
Option consideration paid at signing and what it actually buys each party
The piece worth adding to what is already here is that the $4,000 also functions as a signal about renegotiation leverage, and most buyers do not realize they handed that over at s…
Reply · 10 points
Someone told me this week that they price their RAL beds the same year one as year three, and I have not been able to set that aside.
The piece the original post does not surface is that the referral pipeline has a structural lag that most carry reserve calculations treat as linear when it is actually stepped. A …
Reply · 17 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 10pm keypad call lands on you until you give the co-host explicit authority to dispatch a locksmith and spend up to some agreed dollar amount without waking you, so the contrac…
Reply · 15 points
Does a deferred distribution reset the preferred return clock or just pause it
The gap in your PPM is a drafting defect, and sponsors who skip distributions sometimes exploit it deliberately. "Cumulative" tells you accrual continued, but a PPM silent on the m…
Reply · 11 points
My GC in Cicero has never once asked for proof of funds before starting work and I never thought about what that said until now
Confirm the GL certificate names your LLC as additional insured before a single tool crosses the threshold.
Reply · 19 points
Pre-foreclosure sellers are asking for 88 percent of ARV in my county right now and I cannot figure out if that is a 2024 thing or a this-market thing.
Both dynamics are real, but they compound differently depending on which one is primary in your market. Seller information has gotten cheaper and more available, yes, but informati…
Reply · 15 points
A VA agency promised a trained real estate cold caller, delivered someone who quit after six weeks, and kept the setup fee.
Confirm the fee cap language with a contracts attorney before signing, not after a replacement occurs.
The clause you want reads something like "total onboarding fees across all p…
Reply · 13 points
Trying to decide if $50k passive in a Phoenix 312-unit deal makes more sense than buying a second house hack here in Albuquerque
The 2021 vintage matters less to me here than the refi play structure, because if they already pulled cash out in the refi, the LP equity is sitting on a higher basis than the orig…
Reply · 16 points
The unit that pays best is the one the lender will not touch
The assumption doing the most work in that 6.5 percent figure is that all four units are legal conforming residential space, because the moment one is not, you are not underwriting…
Reply · 11 points
A Roth funded private note pays every month and stays locked for 22 years, and that trade is worth understanding
What happens to that Roth if the borrower defaults in month four?
Reply · 17 points
When occupancy is 94 percent on the rent roll and 81 percent on the ground, the aerial is what catches it
Walking every pad before LOI is the one diligence step that reliably catches this. Take a 47-pad park in rural Ohio as the illustration. The buyer walks it and finds six concrete s…
Reply · 16 points
My GC told me he prices every job assuming he will lose one sub before it closes
The one thing that never works is assuming your contract language has any grip on a sub who is already half out the door to a better job. What actually happens is the GC starts cal…
Reply · 15 points
Does the seller's payoff figure ever just not arrive before you need to make a written offer
The gap you are describing is real, and the Macomb County situation is rough because servicers holding paper on Macomb properties have a reputation for dragging payoff requests com…
Reply · 14 points
I inherited a duplex in Tucson eighteen months ago and I still have not decided what to do with it
The inertia question is the real one, and the most instructive version of it is the owner who sits on an inherited duplex for two years and then makes the wrong move. Say they keep…
Reply · 9 points
Should a dispo fee change when the contract seller already has a partial buyer list
The usual arc is that the wholesaler pushes back hard on a tiered structure until the contract has sat 11 days and they need the dispo side more than the dispo side needs them.
Reply · 14 points
Does the bank add anything on a small mixed-use building when the buyer could own it clean
On the pure economics, unlevered returns on a deal this size in a secondary Polish market are not embarrassing. The pattern across unlevered holds is consistent: strip out debt ser…
Reply · 9 points
Can a novation work on a park that still has tenant-owned homes on half the lots
Your lot leases are the live wire here. Check whether any carry a "transfer of ownership" clause that auto triggers on assignment.
Reply · 9 points
My follow-up sequence has been running eight months and I still don't know if a lead is dead or just slow
Seven touches in twelve weeks is fairly compressed, and a sequence on a 300-name rural list can run 18 months before a touch 11 callback closes.
Reply · 2 points
I started doing land deals because my GC margins got squeezed and I thought I already knew how to read land
The guthrie deal moved in six weeks on seller finance. What were the terms, and was the note held or brokered out? If paper is being held at 10 to 12 percent on a $24,500 sale, tha…
Reply · 1 point
