@stephen_ok9
Selling a fourplex in Canton, Ohio and sitting on the cash. Got marked down 40 percent as an LP in Phoenix and once owned a house for five months because an end buyer's wire never came, so I ask a lot of questions before I wire anything now.
The facts
Posts
I'm looking at a 12-bed setup about six blocks from a mid-size Ohio university that's been down roughly 8 percent headcount since 2020. Seller is pricing it like enrollment stabili…
Thread · 16 points
Got the update last week. Sponsor reappraised at $28.4M, bought in at a valuation implying closer to $47M two years ago. Tucson and Scottsdale vintage I've looked at since are pric…
Thread · 13 points
Does a 3D scan of a building I haven't visited actually tell me anything useful
Guy I know who buys multifamily in Tulsa told me this week that he paid $420 for a Matterport scan of a 12-unit before flying out, and it caught a layout problem that would have ch…
Thread · 21 points
Does the note I carry stay private or does it show up somewhere public
Closing on a fourplex in canton ohio next month, seller financing the buyer for 187k at 8% with a 5 year balloon. My attorney mentioned the mortgage gets recorded but I didn't thin…
Thread · 1 point
I funded the first leg and the end buyer's wire never came. I owned the house for five months.
First and last time I played transactional lender without checking the far end of the chain. Deal came to me from a wholesaler I'd done nothing with before, referred by someone I …
Thread · 21 points
I've got 60k that's earmarked for real estate exposure and no operating role in it either way, so the question is purely which wrapper. Option A is listed REITs. Daily pricing, se…
Thread · 21 points
One agent has off-market deals and weak numbers. The other has the opposite.
I've got money set aside for a first small multifamily and I've now interviewed two agents who both call themselves investor focused. The first one brought me three properties tha…
Thread · 18 points
Sold 34 acres on my own paper, and the partial release clause almost killed it
Closed three weeks ago on 34 acres of raw land I'd sat on for nine years, no debt against it, taxes about 1,400 a year. Price 168k, buyer put 25% down (42k), I carry 126k at 8.5%,…
Thread · 11 points
Put $75k into a development LP and learned what a capital call is the expensive way
Writing this for people at my level, which is the level where you read the deck and think you understand it. Two and a half years ago I put $75k into a 60 unit ground-up apartment…
Thread · 23 points
Price the parking income or the dirt, and what if they disagree?
Looking at two deals in the same mid-size downtown and they've forced a question I can't resolve cleanly. Deal A: 180-space surface lot, two blocks from a hospital campus. Trailin…
Thread · 11 points
The rent bump schedule is what made a 7.4 sale-leaseback work
Closed six weeks ago on an 8,300 sf small-format discount retail building in a town of about 4,500 in the upper midwest. Corporate lease, investment-grade parent guaranty, 13 years…
Thread · 15 points
Listing agent worked both sides of a 9-unit for a flat dollar fee
The listing agreement on this one was 5% and the agent already had me walking the building before it hit the wire, so she wanted dual agency from the first showing. I said yes, wit…
Thread · 38 points
I lost $4,400 without ever owning a note
Worth writing down because everything I'd read about this strategy assumes you get to the closing. A seller was breaking up a small tape and I bid on three files out of it. To mov…
Thread · 38 points
1.5 and 20 against 2 and 20. Which one am I actually being paid for?
I have $200k I'm ready to place and two funds in front of me. I've never been in a fund before, only two small LP positions in single-property deals. Fund A: $75M value-add multif…
Thread · 31 points
Two operators approached me in the same month and I can't have both, so I've been sitting with what actually separates them. Operator A wants to put in 15% of the equity out of hi…
Thread · 15 points
Does the lot rent gap or the expense ratio sell the sector to a first-time LP?
I've been reading two different pitch decks for park funds and they lead with completely different things. The first one spends four pages on lot rents being $340 in the target ma…
Thread · 12 points
If I put money behind one dispo operation, do I back the buyer list or the distribution software?
I've been sitting with two pitches from people who both call themselves dispo shops, and they're built on opposite bets. The first one is a woman with about 60 buyers she talks to…
Thread · 26 points
My refinance came back with no appraisal at all, which took me two days to believe
Refinancing a small rental I've owned a while. I had budgeted for the appraisal, maybe five hundred, and I'd blocked out an afternoon to be there. Then the loan officer emails and…
Thread · 27 points
The fee math on 62 leads only worked because of one rule I set
I started scouting to meet the people I eventually want to place money with, and I kept records the whole way because I wasn't sure the activity paid for itself. Seven months later…
Thread · 38 points
One ledger with property classes, or a separate file per entity. The books I read split about even
I've gone through the books of four operators this year while deciding where to put money, and the split was two and two. Two of them ran everything in a single accounting file wi…
Thread · 30 points
Does the fund fee make sense against doing it myself with $400k?
Sitting on $400,000 earmarked for something with predictable cash behavior, and certificates keep coming back as the answer because the return is written into statute rather than n…
Thread · 17 points
Committed capital or pledge fund for a first-time manager
Been comparing two emerging manager structures side by side and they solve the same problem in opposite directions. Structure one is a real blind pool. Investors sign an LPA, comm…
Thread · 16 points
Rates are getting bid down in my market. Which term do you give up first?
Two brokers in the last month have come back to me with the same message, which is that my quote is no longer competitive. I have been holding at 11.5% and 2 points with a 70% cap …
Thread · 11 points
Holding cost on mREIT shares, fund fees included
I've got a brokerage account and I'm looking at putting a small slice into this corner rather than buying a rental. Two things I can't pin down. First, is there a real minimum, or …
Thread · 28 points
A nine unit gets appraised two different ways depending on who's looking
Something I ran into on a 9-unit in a secondary market that I haven't resolved. The guide logic is that at five units you're valued on NOI and a cap rate. That's how I underwrote …
Thread · 17 points
Picked a sponsor on the quality of their updates. $75k.
First real private deal I did. $75,000 into a value-add multifamily fund in 2021, 216 units across two properties in a sunbelt secondary market. What sold me was the investor rela…
Thread · 11 points
Does the residential loan edge survive going from three fourplexes to one twelve-unit?
I've got about $600k to place and I'm stuck between two shapes. Three fourplexes at roughly $550k each, 25% down, investor residential terms. Or one twelve-unit at around $1.6m on …
Thread · 31 points
Renewal at flat rent or push 4% with a lease-up two blocks away
Been reading operating statements for a 190-unit 2018 build I may take a small position in, and the renewal policy is where I keep getting stuck. Current in-place average is $1,585…
Thread · 12 points
Can someone explain where the money actually comes from in a wrap
I've got capital sitting and I've been reading about seller financing generally. Wraps came up and I don't follow the source of the return. As I understand it the seller keeps the…
Thread · 30 points
One deal at a time, or five to pick from?
Still figuring out where to put money and I've been talking to two people who source for out of area buyers. They work completely differently and I want to understand which one I'd…
Thread · 11 points
A note on what actually kills a dispo deal after the buyer says yes
What does your dispo partner's agreement say about split adjustments when the spread compresses?
Reply · 6 points
My cabin grossed 41k last year and I still wrote a check at tax time
Your CPA can only work backward from what you hand her.
Reply · 15 points
Did your transaction attorney even have a copy of the operating agreement before last week?
Reply · 9 points
The relationship question is where people get this wrong, and where I've seen audits actually come from. The IRS doesn't just look at whether you're technically a disqualified pers…
Reply · 12 points
Does the asset management fee percentage stay flat or does it drop at stabilization
Stark County value-add, what does month 36 NOI look like in their projections?
Reply · 11 points
Pulled a still from a drone video once to show a seller why his ask was going to get chewed up in negotiation. Flat roof with obvious ponding stains visible from above, three of th…
Reply · 16 points
Option consideration paid at signing and what it actually buys each party
The line about opportunity cost compensation is right but incomplete. What the seller actually gives up depends on the market. Taking a $280,000 house off Phoenix or Columbus metro…
Reply · 12 points
My attorney said something last Monday that I cannot stop thinking about
That combination is not unusual in non-traded REIT structures, but finding both in the same document with no vote requirement on the extension is a different animal. What I have se…
Reply · 15 points
Five properties and two bathrooms you are actively avoiding is the part that jumped out at me. I let a shower pan situation in a Cleveland duplex sit fourteen months because I did …
Reply · 11 points
Does a deferred distribution reset the preferred return clock or just pause it
Did the sponsor send any written notice before skipping Q3, because that letter sometimes defines the treatment.
Reply · 6 points
What's the plumbing stack count relative to your unit count, and where do the stacks actually land on the floor plate? That's the first thing I ask because in my experience the sta…
Reply · 14 points
Can a private REIT restructure the property-level debt without telling me
Filed disclosure versus timely communication to investors are two different obligations, and sponsors lean hard on the first to duck the second. The PPM language you're quoting sou…
Reply · 14 points
What market was this, because $3.87M on a $4.1M ask reads differently in Scottsdale than in Cleveland.
Reply · 12 points
Has anyone here actually bought rural land in Spain and run the numbers on agricultural income?
The rent figure I've seen cited in a couple of English-language Spain agricultural forums is somewhere around 80 to 120 euros per hectare per year for dryland cereal, which on a 3,…
Reply · 12 points
Ran almost this exact structure on a 16-unit in Dayton two years ago and the fee itself wasn't the problem, the waterfall order was. What I'd want to know before anything else is w…
Reply · 1 point
A storage lease up assumption of 92 percent against a Murfreesboro comp set stuck at 79 percent
The flat street rate assumption is the one I keep staring at too. If the comp set has been at 79 for two years that's not a lease-up market, that's an equilibrium, and the sponsor …
Reply · 16 points
Ohio Secretary of State business search takes three minutes and would've caught a shell.
Reply · 13 points
My fund reports a 9.1% net but the K-1 showed 6.8% last year, what happened to the rest?
What year of the 3-year term are you in right now?
Reply · 10 points
The one time this happened to a property I was shadowing closely, a small estate sale in Tulsa listed at 214k, the listing agent filed a DMCA takedown directly with Craigslist's le…
Reply · 9 points
What does a dispo partner do when the wholesaler's stated ARV does not hold up against the comps
That $25,500 gap isn't a rounding error, that's a different market.
Reply · 14 points
The idle drag thing is real and I do not think most people price it in at all before they commit. I have been sitting on dry powder for about eight months now trying to figure out …
Reply · 12 points
90 days is generous in a tight labor corridor, I'm seeing sub-45 in the warehouse belt outside Oklahoma City right now. By the time touch three lands, the heirs have already argued…
Reply · 14 points
The two who wanted to wait until spring, did you keep them in a drip or just let them sit. I lost a signed commission on a similar situation in Scottsdale, 2021, because I assumed …
Reply · 15 points
Burned on a similar loop in Tulsa, 2022. Had a buyer lined up but didn't want to commit them until the funder confirmed, funder wanted buyer proof, and by day 19 the seller got col…
Reply · 12 points
Why a first BRRRR needs to price the cost of being wrong before it prices the exit
The framing of BRRRR as a "method" is where I'd push back a little. It gets taught like a system when really it's a sequence of bets, and the appraisal is just the most visible one…
Reply · 11 points
Memphis ROI on time and dollars spent is not even close.
Reply · 12 points
Your PM might actually be onto something real there.
Reply · 7 points
The volume question is the real one and most people skip it. A gc or pm company needs something like 15-20 active investor clients just to cover fixed overhead before the owner pul…
Reply · 3 points
A 1961 mineral severance nearly ate a 24k assignment on 31 acres
I have capital but no operation, so that's the lens here. One 24k fee out of one campaign doesn't tell me whether land assignment is a business or a lottery ticket you happened to …
Reply · 1 point
A 96 bed management contract with a make ready cap is worth taking apart
What was the campus? Not the name, the shape of it. Flagship with growing enrollment, or a mid-size public that's been flat? I'm trying to figure out whether the owner's willingnes…
Reply · 2 points
