The lot you comp off an existing street does not price a teardown lot the same way
A cleared infill lot in a settled neighborhood carries a number that looks like a comp but works like a trap. The houses around it set the ceiling on what a finished spec can sell …
Thread · 20 points
The EPS line on an mREIT income statement is doing less work than it looks like it is doing
Distributable earnings, or sometimes called core earnings depending on the filing, is the number that tells you whether the dividend is covered, and several agency mREITs report GA…
Thread · 15 points
When the tax tail is wagging the dog on a QOF decision
An accountant looking at a QOF for the first time will often say the tax tail is wagging the dog, and the phrase deserves a closer look. Picture a 96 unit workforce housing deal in…
Thread · 13 points
What does a legitimate consulting engagement produce that a fund comparison would not
Consider this one. An investor pays a consultant $3,200 and brings him a specific property. Six weeks later the answer amounts to go buy VNQ. That is something anyone could read on…
Thread · 13 points
Does co-living actually beat a REIT once the time you cannot get back is priced in
This comparison gets messier every time it is run properly. VNQ has returned roughly 8 to 9 percent annualized over the past decade, and it can be bought or sold in thirty seconds …
Thread · 7 points
My REIT position basically sat there while the gap deal I needed it for closed two weeks early
The misconception worth correcting is that REIT liquidity and REIT price stability are the same property. You can always sell in nine days; you cannot always sell at a price you ch…
Reply · 10 points
Does a JV operator putting management fees into the LLC expenses change how the pref is calculated
The phrase matters less than where the definition of "net operating distributions" sits in the agreement, because that is where the operator decides whether management fees are abo…
Reply · 9 points
Fannie small balance cuts off at 9 million and agency cuts off at roughly 7.5 percent LTV flexibility before a supplemental is even on the table
The point worth adding to what you laid out on the pref stack is that the 10 to 12 percent pref return sounds negotiable until you stress the NOI. Take a 90-unit stabilized at a 6 …
Reply · 7 points
My servicer charged me $1,200 in "file review fees" on a note I sold four months ago
The $1,200 is almost certainly recoverable, but the path runs through the servicing agreement you signed when you first engaged that servicer, not through the transfer notice you s…
Reply · 13 points
Has anyone actually calculated what a rent increase request costs you in time before the housing authority acts on it
The lag is a real cost and you are right that almost nobody underwrites it. A practical way to price it is to assume one rent increase per year takes six months to act on, then dis…
Reply · 13 points
The fund projected a 2031 exit and the rate cap expires in 2029.
The risk that tends to go unexamined is what the GP's waterfall looks like at a forced 2029 sale compared to a clean 2031 exit, because most promote structures are written so the G…
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
The assumption doing the most work in your post is that a referral two handshakes deep gives you the same information a direct track record would, and it does not come close. Someo…
Reply · 9 points
A VA agency promised a trained real estate cold caller, delivered someone who quit after six weeks, and kept the setup fee.
One cap clause I have seen that held: a lifetime aggregate fee ceiling written into the master agreement, not the order form.
Say the original onboarding is $3,000 and the contrac…
Reply · 16 points
Does anyone actually know what a fair CPL benchmark is for motivated seller leads in coastal California right now
The $85 to $340 range is not padding on either end, it reflects how differently the same platforms price inventory across zip codes even within a single county. San Bernardino Coun…
Reply · 12 points
When a developer finally reaches your land bank parcel, how you title it in year one can cut what you net in year twelve
The missed line in most LLC operating agreements for land banking is the consent-to-transfer clause, which can require unanimous member approval before a partial interest moves, so…
Reply · 10 points
Does the spread change when the underlying loan has an ARM in it
The cleanest protection I have seen documented is a pass-through adjustment clause that ties the buyer's payment to movement in the underlying index, usually SOFR or whatever the o…
Reply · 6 points
Does anyone actually read the insurance file before they bid on a tax deed property
Vacant parcels usually have no insurable interest, so CLUE won't exist anyway.
What's the last known occupancy date on the parcel you're looking at?
Reply · 5 points
A storage lease up assumption of 92 percent against a Murfreesboro comp set stuck at 79 percent
The promote before proof structure is what should kill it. Picture an industrial flex JV where the sponsor hits the promote at month 14 on paper occupancy that collapses to 61% act…
Reply · 10 points
Does the borrower check change when the collateral is a tax certificate rather than a title
A certificate loan in Maricopa County where the borrower goes dark at month eight leaves the lender out $34k.
Reply · 8 points
My brokerage is three months old and I still don't have a written policy for how I handle an agent who goes dark on a transaction
What is your state's rule on who can legally step in on a file when the listing agent is unreachable?
Reply · 9 points
A Roth funded private note pays every month and stays locked for 22 years, and that trade is worth understanding
The Carolina market is interesting for this because the rehab to rental pipeline there is still producing borrowers who actually know what they are doing, which makes the repeat op…
Reply · 4 points
60 cents on the dollar at disposition and I still owe the LP their full pref
The part that does not get said is that your co-invest sat in the same waterfall position as the promote, so it had zero protection the moment the deal ran long. Take a 72 unit, 20…
Reply · 11 points
My housing authority told me to stop using my own lease entirely
The one thing that never works is a landlord arguing "the addendum is silent on this" when the silence cuts against them.
Reply · 15 points
I always thought the hardest part was finding the money, but it turns out it's proving you deserve it.
Track record is the collateral a gap lender is actually underwriting. What is the ARV on that Portland deal?
Reply · 12 points
Does preferred equity work on a boarding house acquisition or does the year one coupon break it
The deferred coupon balloon structure you're describing is exactly where preferred equity in a boarding house tends to get burned, and the failure is worth walking through. Take a …
Reply · 8 points
What happens when the anchor buyer in a reverse wholesale is already committed elsewhere
Never send the address to confirm a location.
Reply · 14 points
A QOF fee stack can reach 3.8 percent annually before the deal makes a dollar
A pattern worth knowing. Take a 2019 vintage QOF where the all-in fee load is listed at 1.9 percent but the waterfall carries a 1 percent acquisition fee at the property level that…
Reply · 10 points
Lost a sandwich option on a Memphis triplex because I built in 14 months and the seller's payoff was 22.
Pulling the underlying loan docs should be table stakes before you sign anything, and the cost of skipping it is easy to illustrate. Take a subject-to where the buyer never reads t…
Reply · 15 points
Does the bank add anything on a small mixed-use building when the buyer could own it clean
The one thing that does not get mentioned until it is already a problem: your tax position changes materially when there is no interest to deduct. In Poland specifically, if you ho…
Reply · 10 points
Is there a rule of thumb for how far out from a city limit a land bank parcel stops making sense?
Your 1 mile per 4 years is probably close, though it assumes linear sprawl, and mid-size metros rarely grow evenly in all directions. One side usually has a highway corridor or an …
Reply · 8 points
